What is an EIN?
An Employer Identification Number (EIN) is a unique nine-digit number assigned by the IRS to identify your business for tax purposes. Think of it as a Social Security Number for your business.
An EIN looks like this: **XX-XXXXXXX** (e.g., 12-3456789)
Who Needs an EIN?
You need an EIN if you:
- Have employees — Required for payroll tax reporting
- Operate as a corporation or partnership — Required regardless of employees
- File Form 2290 — The Heavy Vehicle Use Tax requires an EIN (not SSN)
- File excise tax returns — Various federal excise taxes require an EIN
- Open a business bank account — Most banks require an EIN
- Apply for business licenses — Many states and local governments require it
- File information returns — Forms 1099, W-2, and others require an EIN
Sole Proprietors: Do You Need One?
If you're a sole proprietor with no employees, you're not technically required to have an EIN — you can use your SSN. However, getting an EIN is recommended because:
- Protects your SSN — Reduces identity theft risk
- Looks professional — Clients and vendors expect a business number
- Required for Form 2290 — The IRS does not accept SSNs on Form 2290
- Easy and free — There's no reason not to get one
How to Apply for an EIN
#### Option 1: Online (Fastest — Recommended)
- Go to **IRS.gov** and search for "EIN application"
- Click "Apply for an Employer Identification Number (EIN) Online"
- Complete the online application (takes about 10 minutes)
- Receive your EIN immediately upon completion
- Download and save the confirmation letter
**Availability**: Monday-Friday, 7 AM to 10 PM Eastern Time
#### Option 2: By Fax
- Download Form SS-4 from IRS.gov
- Complete the form
- Fax to the appropriate IRS office
- Receive your EIN within **4 business days**
#### Option 3: By Mail
- Download and complete Form SS-4
- Mail to the appropriate IRS address
- Receive your EIN in **4-6 weeks**
Information You'll Need
Have these ready before applying:
- Legal name of your business
- Business type — Sole proprietorship, LLC, corporation, partnership
- Responsible party — Name and SSN of the business owner or authorized person
- Business address — Physical and mailing address
- Reason for applying — New business, hiring employees, banking purposes, etc.
- Start date — When did or will the business begin operating
- Principal activity — What does your business do (e.g., trucking, construction)
After You Get Your EIN
- Save your EIN letter — The IRS only issues it once
- Update your business records — Add your EIN to bank accounts, contracts, and tax forms
- File Form 2290 — If you have heavy vehicles, you can now file with TaxBundle
- Set up payroll — If you have employees, use your EIN for withholding
Common EIN Questions
**Can I apply for an EIN if I'm not a U.S. citizen?** Yes, but you'll need to apply by phone or mail (not online). Call the IRS at 1-267-941-1099.
**How many EINs can I have?** Each business entity needs its own EIN. If you have multiple businesses (separate legal entities), each one needs its own number.
**What if I lose my EIN?** Check previous tax returns, contact your bank, or call the IRS Business & Specialty Tax Line at 1-800-829-4933.
**Does an EIN expire?** No. Once assigned, your EIN is permanent and doesn't expire, even if you close your business.