What a Tax ID Number Is and Who Needs One

A Tax ID Number (also called an Employer Identification Number or EIN) is a nine-digit number the IRS assigns to identify your business, nonprofit, or other entity for tax purposes. You need one if you operate a business as anything other than a sole proprietor using your Social Security Number, run a partnership, operate an LLC or corporation, hire employees, or file certain tax forms.

If you are a sole proprietor with no employees and no separate business structure, you can use your Social Security Number instead. But most business owners, nonprofits, and self-employed people with employees need a Tax ID Number to file returns, open a business bank account, and hire staff.

Key Takeaways

  • You can get a Tax ID Number free from the IRS online, by phone, by mail, or in person at an IRS office, with no cost to you.
  • The online application at IRS.gov takes about 15 minutes and gives you your number immediately after you finish.
  • You will need your Social Security Number, date of birth, business address, and information about your business structure (sole proprietor, LLC, corporation, nonprofit, etc.).
  • If you apply by phone or mail, processing takes one to four weeks; online is instant.
  • Once you have your Tax ID Number, you use it on all business tax forms, bank accounts, and payroll documents.

Getting Your Tax ID Number Online (Fastest Route)

The fastest way to get a Tax ID Number is through the IRS website at IRS.gov. Go to the Business & Self-Employed section and look for "Apply for an EIN Online." You will answer questions about your business structure, ownership, and location. The process takes about 15 minutes, and you receive your number on screen immediately after you submit.

You need your Social Security Number, date of birth, business address, and the type of business entity you are (sole proprietor, partnership, S corporation, C corporation, LLC, nonprofit, trust, etc.). Have this information ready before you start. The IRS will also ask why you need the number — common reasons are "hiring employees," "opening a business bank account," or "filing a tax return."

After you receive your number online, the IRS mails you an official confirmation letter within two weeks. Keep this letter; you will need it to open a business bank account and for your records.

Applying by Phone or Mail if Online Is Not an Option

If you cannot apply online, you can call the IRS Business & Self-Employed line at 1-800-829-4933. Have your Social Security Number, date of birth, and business information ready. The IRS representative will ask the same questions as the online form and issue your number over the phone. Processing takes one business day, and they mail you a confirmation letter within two weeks.

You can also mail Form SS-4 (Application for Employer Identification Number) to the IRS. Download the form from IRS.gov, fill it out, and mail it to the address listed on the form — the address depends on which state your business is in. Processing by mail takes two to four weeks. This route is slower but works if you do not have internet access or prefer paper forms.

What Information You Need Before You Apply

Gather these items before you start your application, whether online, by phone, or by mail:

  • Your Social Security Number and date of birth
  • Your business name (or the name you want to use)
  • Your business address (street, city, state, ZIP code)
  • The type of business structure: sole proprietor, partnership, LLC, S corporation, C corporation, nonprofit, trust, or other
  • The reason you need the number (hiring employees, opening a bank account, filing taxes, etc.)
  • If you have a business partner or multiple owners, their names and Social Security Numbers
  • If your business is a nonprofit, your nonprofit status documentation or the date you plan to file for nonprofit status

You do not need to have filed paperwork with your state yet (like an LLC formation or corporate charter). The IRS will issue your Tax ID Number before your state filings are complete. However, if you have already filed state paperwork, have that documentation available — it can speed up the process.

Timeline: When You Get Your Number and Confirmation Letter

The timeline depends on which method you use. Online applications give you your number immediately on screen. By phone, you receive your number the same day you call. By mail, you receive your number two to four weeks after the IRS receives your form.

In all cases, the IRS mails you an official confirmation letter (Form SS-4 with your assigned number) within two weeks of approval. This letter is what you show to your bank, your accountant, or anyone else who needs proof of your Tax ID Number. If you applied online or by phone, you can print a temporary confirmation from the IRS website while you wait for the official letter.

If you need your number urgently — for example, to open a business bank account the next day — apply online or by phone. Do not use mail unless you have time to wait.

Using Your Tax ID Number After You Receive It

Once you have your Tax ID Number, use it on every business document and form. Open a business bank account in your business name and Tax ID Number (not your personal name). Give the number to your accountant or tax preparer so they can file your business tax returns. If you hire employees, provide the number to your payroll service or HR system.

You will also use your Tax ID Number on business licenses, contracts, loan applications, and any form that asks for your business identification. Keep your confirmation letter in a safe place — you may need to show it to banks, landlords, or government agencies.

If you lose your Tax ID Number or cannot find your confirmation letter, you can look it up on IRS.gov or call the IRS at 1-800-829-4933 with your business information. The IRS can confirm your number over the phone at no cost.

Frequently Asked Questions

Do I need a Tax ID Number if I am a sole proprietor with no employees?

No, you can use your Social Security Number on your tax return and business documents. However, many sole proprietors get a Tax ID Number anyway because it keeps their personal and business finances separate and is required to open a business bank account. The number is free, so the choice is yours.

How much does it cost to get a Tax ID Number?

It is completely free. The IRS does not charge any fee to apply for or receive a Tax ID Number, whether you apply online, by phone, or by mail. Be cautious of websites that charge a fee to "help" you get one — you can do it directly with the IRS at no cost.

Can I get a Tax ID Number the same day I need it?

Yes, if you apply online or by phone. Online applications give you your number immediately. Phone applications give you your number the same day you call. If you need it by mail, processing takes two to four weeks, so plan ahead.

What if I already have a Tax ID Number but forgot it?

Call the IRS at 1-800-829-4933 with your business name and address, and they will tell you your number. You can also check your previous tax returns, bank statements, or business licenses — your Tax ID Number appears on all of these. The IRS can also mail you a duplicate confirmation letter if you have lost yours.

Do I need a Tax ID Number for a nonprofit organization?

Yes. All nonprofits need a Tax ID Number to file Form 990-N, 990-EZ, or 990 (depending on size), open a nonprofit bank account, and hire staff. Apply the same way as a for-profit business, but select "nonprofit organization" as your business structure when you apply.