Every business that pays employees in the United States has an EIN. So does every corporation, partnership, and most LLCs, even ones without employees. The application is free, the process is quick, and the IRS runs it directly through its own online portal. Despite that, paid services that charge $79 to $299 to "help" you apply still show up in search results and social ads. This page explains what an EIN is, who actually needs one, how to apply for free, and what to do if you lose your number or need to update it as your business changes.
Who Needs an Employer Identification Number
You need an EIN if your business has employees, operates as a corporation or partnership, files payroll or excise tax returns, withholds taxes on income paid to a non-resident, has a Keogh plan, or is involved with any of several specific types of trusts, estates, or nonprofits. A single-member LLC with no employees technically can use the owner's SSN for federal tax purposes, but most banks require an EIN to open a business account, so almost every LLC ends up getting one.
Once issued, an EIN is permanent. Even if a business closes, the number stays assigned to that entity and isn't reused. If you restructure (say, from an LLC to a corporation), you usually need a new EIN because the legal entity changed.
How to Apply for an EIN
The IRS online application is the fastest path. Available Monday through Friday, 7am to 10pm ET, it issues an EIN immediately upon completion (usually under 15 minutes). The responsible party applying must have a valid SSN or ITIN. Alternatives include Form SS-4 by mail (four to six weeks) or fax (about four business days).
The IRS EIN application page is the only place you should apply. Paid services add no value and sometimes introduce errors. The process is free. Always.
What Happens If You Need Multiple EINs?
Related businesses under common ownership generally get separate EINs, one per legal entity. A single business that does business under multiple DBAs keeps one EIN. If you acquire another business in an asset purchase, you typically keep your own EIN; in a stock purchase, the target keeps its EIN.
What to Do If You Lose Your EIN
Check old tax returns (Forms 941, 940, 1120, 1065), your payroll reports, or the original CP 575 notice the IRS sent when they issued the EIN. The business bank account application probably also has it. If none of those work, call the IRS Business and Specialty Tax Line at 800-829-4933; they'll verify identity and provide the number.
If you need to update information associated with your EIN (business name, address, responsible party), use Form 8822-B for name and address changes, or notify the IRS within 60 days of a change in responsible party. Keeping the EIN record current matters for payroll tax deposits, year-end tax filings, and any correspondence the IRS sends to the business.
Where Your Employer Identification Number Actually Gets Used
Your EIN shows up on most of your business's major tax forms: 941 for quarterly payroll tax, 940 for federal unemployment, W-2 for employee wage reporting, 1099 for contractor payments, and the company's income tax return (1120, 1120-S, 1065, or 990 depending on entity type). It also appears on W-2 forms employees receive for their own tax returns.
Keep the EIN in a safe, accessible place: your accountant has it, your payroll provider has it, your bank has it, and it lives in your business records. Treat it like you'd treat your company's Social Security number (because that's essentially what it is), and use the IRS directly for any changes or corrections.
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