How to get an EIN

3 ways to apply for a federal tax ID

When you need an EIN

• Opening a business bank account
• Hiring employees or running payroll
• Filing federal taxes as an LLC, corporation, or partnership
• Applying for business licenses, credit, or merchant accounts
• Filing Form W-9 with clients (so they don't need your SSN)

TIN vs EIN — what's the difference?

"Tax ID Number" (TIN) is the umbrella term for any IRS taxpayer ID. The EIN is one specific kind of TIN — the one used by businesses. Other TINs include:

• SSN — Social Security Number; for US citizens and permanent residents
• ITIN — Individual Taxpayer Identification Number; for non-residents who file US taxes but can't get an SSN
• EIN — Employer Identification Number; for businesses (LLCs, corporations, partnerships, trusts, estates)

So when a bank or vendor asks for your "Tax ID", they almost always mean your EIN if you're a business.

EIN without an SSN — non-US founders

The IRS online EIN tool requires an SSN or ITIN as the "responsible party". If you don't have one — common for foreign-owned LLCs — you have two options:

1. File Form SS-4 by fax to the IRS. Approval typically takes ~4 business days. You can use your foreign tax ID and passport details in place of an SSN.
2. Use a third party like ClearFormation to prepare and submit the SS-4 for you — useful if you want it bundled with formation or done correctly the first time.

Foreign-owned single-member LLCs also have an annual Form 5472 reporting obligation, even with zero US income — penalty is $25,000 per missed filing.

Step-by-step: applying online with an SSN/ITIN

1. Go to irs.gov/EIN. The official tool is at sa.www4.irs.gov/modiein/individual/ — open in one browser session.
2. Select the entity type (LLC, Sole Proprietor, Corporation, etc.). For an LLC, the system asks how many members and which state.
3. Enter the responsible party's name and SSN/ITIN. The responsible party is the individual who ultimately controls the entity — typically the founder.
4. Enter the LLC's mailing address and the formation state.
5. Choose the reason for applying (started a new business, hired employees, etc.).
6. Confirm and submit. The EIN appears on screen immediately. Download the CP-575 confirmation PDF right then — the IRS only displays it once.

Step-by-step: applying by fax (Form SS-4)

1. Download Form SS-4 from irs.gov/forms-pubs/about-form-ss-4.
2. Complete lines 1–18. Non-US founders write "Foreign" on line 7b instead of an SSN/ITIN.
3. Sign the form (wet signature, then scan).
4. Fax to the IRS number listed in the SS-4 instructions — different number depending on whether the principal business is inside or outside the US.
5. Receive the EIN by return fax — IRS guidance is ~4 business days regardless of applicant nationality; backlogs (December, February–April) can extend this to 2–4 weeks.

The "responsible party" rule

Every EIN application names one responsible party — the individual with ultimate authority over the entity. The IRS limits each responsible party to one EIN per day. If you're forming multiple LLCs in a single sitting, you'll need to space the applications out across calendar days or designate different responsible parties.

Updating the responsible party later requires Form 8822-B, due within 60 days of the change. The IRS uses the responsible party for certain notices and contacts.

Common EIN application mistakes

• Applying before the state approves the LLC

  The EIN needs a real legal name. Forming the LLC first, then applying, avoids name mismatches that trigger manual review.

• Using a nominee or unrelated person as responsible party

  The IRS expects the actual controlling individual. Wrong responsible party can cause issues with banking KYC down the line.

• Not downloading the CP-575

  Single biggest avoidable hassle. Save it the moment it appears.

• Trying to apply for a second EIN same day

  The one-per-day limit is enforced. Plan multiple entities across calendar days.

• Applying without first reading the SS-4 instructions

  Each line maps to a specific question. The most common rejection reason is mis-coding entity type or state, both of which the instructions explain in plain English.

What to do after you receive your EIN

Your CP-575 letter is the proof banks and payroll providers need. Do these steps in order:

1. Save the CP-575 immediately. Store copies in cloud storage and with your formation documents.
2. Open a business bank account. Bring stamped articles, operating agreement, EIN letter, and ID. See our business bank account guide.
3. Update vendor and client forms. Issue W-9s with the EIN so partners do not need your SSN.
4. Set up payroll if you hire. Register for state unemployment and file Form 941 quarterly.
5. Calendar tax deadlines. Single-member LLCs report on Schedule C. Multi-member LLCs file Form 1065 and issue K-1s.

Which businesses must have an EIN?

You need an EIN if any of these apply:

• You formed an LLC, corporation, or partnership (multi-member LLC always needs one)
• You hire employees or plan to run payroll
• You open a US business bank account in the entity name
• You file excise, alcohol, tobacco, or firearms taxes
• A client or platform requires a business tax ID on Form W-9

Single-owner LLCs with no employees can technically use the owner SSN for taxes, but banks still ask for an EIN — get one anyway.