Look, getting an Employer Identification Number (EIN) is basically the "I'm a real adult business now" ritual. It’s free. It’s (usually) fast. Yet, somehow, a whole cottage industry has sprung up to charge people $300 for a form that takes exactly ten minutes to fill out. If you’re sitting there wondering how to apply for my EIN number without losing your mind or your money, you're in the right spot. I've walked dozens of entrepreneurs through this, and the process is less about complex legal jargon and more about timing and having your Social Security number handy.
Think of an EIN as a Social Security number for your company. The IRS uses it to track your tax reporting, but you’ll need it for way more than just paying the taxman. You need it to open a Chase business checking account. You need it to hire that first employee who isn't your cousin working for free. You even need it to apply for certain business licenses in states like Florida or California.
The IRS Website is Stuck in 1998 (And That Matters)
Applying for an EIN is primarily done through the official IRS.gov portal. It’s a bit of a dinosaur. Honestly, the biggest hurdle isn't the questions; it's the "operating hours." The IRS online application is only available from Monday to Friday, 7:00 a.m. to 10:00 p.m. Eastern time. If you try to do this on a Saturday night with a glass of wine, the site will literally just be closed.
Why? Who knows. It's the government.
Before you click "Apply Online Now," you have to have a valid Taxpayer Identification Number. For most people reading this, that’s your SSN or an ITIN. You also must be what the IRS calls the "responsible party." This basically means you are the person who actually controls or manages the entity. You can’t just have your neighbor do it for you unless they are a legitimate authorized officer or a "designee."
The "One and Done" Rule
You have to finish the application in one session. There is no "save for later" button. If you walk away to fold laundry and the session times out (which happens after 15 minutes of inactivity), you have to start the whole thing over from scratch. It’s annoying.
Choosing Your Entity Type Without Tripping Up
When you start the application, the first thing it asks is what kind of business you’re running. This is where people start sweating. Are you a Sole Proprietorship? An LLC? A S-Corp?
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If you are a freelancer or a solo consultant and you haven't filed any formal paperwork with your Secretary of State, you are likely a Sole Proprietor. However, if you've registered an LLC, select "Limited Liability Company." The IRS will then ask how many members are in the LLC. If it’s just you, it’s a "single-member LLC."
One weird quirk: the IRS treats a single-member LLC as a "disregarded entity" for federal tax purposes. This doesn't mean your LLC doesn't exist; it just means the IRS looks through the business directly to you for income tax. Don't let that term freak you out when you see it on the screen.
Why Are You Doing This?
The system will ask for your "Reason for Applying." Common options include:
- Started a new business.
- Hired employees.
- Banking purposes (this is a huge one).
- Changed type of organization.
If you’re just doing this to get a bank account, just select "Started a new business." It covers all the bases.
The Paper Trail and the Infamous SS-4
If you’re a foreign national without an SSN, or if the online system gives you the dreaded "Reference Number 101" error, you can't use the website. This happens more often than you’d think. "Reference Number 101" usually means the IRS system found a name conflict or something in their database that requires a human to look at it.
In this case, you have to go old school. You’ll fill out Form SS-4.
You can fax this form to the IRS. Yes, people still use faxes. If you fax it, they usually send the EIN back within four business days. If you mail it, prepare to wait four to five weeks. Honestly, if you don't have a fax machine (who does?), use an online fax service. It beats waiting a month for a letter to arrive in your physical mailbox.
Crucial Details People Overlook
The "Responsible Party" must be an individual, not an entity. You can't put "My Holding Company, LLC" as the responsible party for "My New Bakery, LLC." The IRS wants a human being they can hold accountable. They need a name and a Social Security number.
Also, make sure the legal name of your business matches exactly what is on your articles of organization from the state. If you registered as "Green Valley Consultants, LLC" but you type "Green Valley Consulting" into the IRS form, you’re creating a mismatch that will haunt you when you try to file taxes or open a merchant account later.
International Applicants
If you are not a U.S. citizen and don't live in the States but you're starting a U.S. business, you can still get an EIN. You have to call the IRS at (215) 513-3467. This is their international line. It’s not toll-free, and you will likely be on hold for an hour listening to static-filled elevator music. But they can issue the EIN over the phone once they verify your SS-4 details.
Real-World Nuances: The Banking Block
I’ve seen people get their EIN and immediately run to the bank. Don't do that. Give it 24 to 48 hours. While you get the number immediately at the end of the online application, it takes a day or two for that number to propagate through the various permanent government databases. If a bank tries to verify your EIN against the IRS records the same hour you generated it, it might come back as "not found," and the bank will reject your application.
Wait for the "official" digital letter to be generated. At the end of the online process, there is a link to download your EIN Confirmation Letter (Form CP 575). Download this immediately. Save it to your Google Drive, your iCloud, and print a physical copy. The IRS does not provide a "re-download" button later. If you lose this, getting a replacement copy involves a long phone call and weeks of waiting for a letter in the mail.
Mistakes That Cost Time
- The "Too Many EINs" Error: An individual can only be the responsible party for one EIN per day. If you’re trying to set up three different companies at once, you’ll have to spread it out over three days.
- Third-Party Designees: If you're having an accountant or lawyer do this, you have to sign the "Third Party Designee" section. This gives them the authority to receive the EIN on your behalf.
- Using a PO Box: The IRS generally wants a physical location for the business. You can use a mailing address that is different from the physical address, but don't try to list a PO Box as the primary place of business.
Getting Your Paperwork in Order
Before you even open the IRS website, have these items on your desk:
- Your Social Security Number or ITIN.
- The legal name of your business (exactly as registered).
- The date the business started (or will start).
- The "Closing Month" of your accounting year (usually December for most small businesses).
- The maximum number of employees you expect to have in the next 12 months.
If you expect to owe $1,000 or less in employment tax for the whole year, you can actually ask to file Form 944 annually instead of Form 941 quarterly. This is a massive time-saver for tiny businesses with one or two low-wage part-time employees.
Your Immediate To-Do List
Once you finish the online form, you are officially in the system. Here is exactly what you should do in the next 72 hours:
Save the CP 575 Letter. As mentioned, this is your only digital copy. If you close the browser window without saving it, you're in for a headache.
Update your W-9s. If you’ve been working as a freelancer under your Social Security number, you can now send updated W-9 forms to your clients using your new EIN. This keeps your personal SSN off their servers, which is great for your privacy.
Open a dedicated business bank account. Never, ever mix your personal grocery money with your business revenue. It ruins your "corporate veil" and makes tax season a nightmare. Take your EIN letter and your state registration to the bank.
Register for EFTPS. This is the Electronic Federal Tax Payment System. Even if you don't have employees yet, you’ll likely need this to pay your estimated quarterly taxes. It takes a week to get your PIN in the mail, so sign up now.
Applying for an EIN is one of the few things in the business world that is actually free and relatively simple. Don't overthink the questions, make sure your internet connection is stable, and remember that the IRS website takes naps on the weekends. Once you have that nine-digit number, you're legally ready to start making moves.
Next Steps for New Business Owners
- Check IRS Operating Hours: Ensure it is currently between 7:00 a.m. and 10:00 p.m. ET on a weekday.
- Verify State Filing: Confirm your LLC or Corporation has been approved by your state before applying for the federal EIN.
- Gather Personnel Info: Have the SSN and legal name of the primary owner ready.
- Execute the Application: Head to the official IRS EIN Assistant to begin.
- Secure the Documents: Print and digitally save the confirmation notice immediately upon completion.