If you’re starting a business in 2025—whether it’s a side hustle, LLC, or a growing brand—you’ll likely need to get an EIN, or Employer Identification Number. Think of it as a Social Security number for your business: essential for hiring employees, opening a business bank account, and filing taxes.
Good news? It’s free. And in most cases, you can get one online in less than 10 minutes.
Let’s break it down.
Table of Contents
What Is an EIN?
An Employer Identification Number (EIN) is a 9-digit number issued by the IRS to identify your business for tax and legal purposes. You’ll use it for:
- Filing federal taxes
- Hiring employees
- Opening a business bank account
- Applying for business licenses
- Building business credit
If you’re operating as a sole proprietor without employees, you might not need one—but in most other cases, it’s a smart move.
Do You Need an EIN?
You must get an EIN if:
- You have employees
- You operate your business as a corporation or partnership
- You file certain tax returns (e.g., employment, excise, or alcohol/tobacco/firearms)
- You withhold taxes on income (other than wages) paid to a non-resident alien
You should get an EIN if:
- You want to open a business bank account
- You want to apply for business credit cards or loans
- You’re forming an LLC—even as a single member
How to Apply for an EIN (Step-by-Step)
You can apply online through the IRS—no paperwork, no fees.
Steps to get your EIN:
- Visit the IRS EIN portal
- Click “Apply Online Now”
- Choose your business structure (LLC, sole proprietorship, etc.)
- Enter business owner info and business name
- Submit your application
- Receive your EIN immediately (PDF confirmation)
📝 Note: The portal is only open Monday–Friday, 7 a.m. to 10 p.m. EST.
Common Mistakes to Avoid
- Applying before your business is legally formed
- Using incorrect legal names
- Assuming you only need one EIN for multiple businesses
- Paying a third-party site (the IRS never charges a fee!)
Final Thoughts
Getting an EIN is one of the first, easiest, and smartest steps you can take to make your business legit. Whether you’re freelancing, forming an LLC, or scaling a full-time business, your EIN sets you up for success.
But if you’re feeling overwhelmed with everything else that comes with starting a business—from forming an LLC to launching your first product—we’ve got something for you.
💡 Build Your Business with Confidence
Our Business Launch Bundle walks you through every step—from getting your EIN and forming your LLC to managing finances and marketing your first product. Whether you’re a side hustler or first-time founder, this is your launchpad.
Explore the Business Launch BundleFrequently Asked Questions (FAQs)
How much does it cost to get an EIN?
It’s completely free when you apply through the official IRS website.
How long does it take to receive an EIN?
If you apply online, you get it instantly. By mail or fax, it can take up to 4 weeks.
Can I get an EIN without an SSN?
Yes. If you’re a foreign individual starting a U.S. business, you can apply with an ITIN instead.
Do I need a new EIN if I change my business structure?
Often, yes. For example, switching from a sole proprietorship to an LLC usually requires a new EIN.
