Key takeaways. An employer identification number (EIN) is a nine-digit federal tax ID that the IRS assigns to businesses, estates and trusts. It is one kind of tax ID number and is also called a FEIN or federal tax ID. Corporations, partnerships and businesses with employees need one, and the IRS issues it free.
An EIN works like a Social Security number for your business. The IRS uses it to identify your business on federal tax returns, payroll filings and IRS letters. Banks, states and clients often ask for it too.
Is an EIN the same as a tax ID number?
An EIN is one type of tax ID number, but not every tax ID number is an EIN. “Tax ID” is the everyday name for a taxpayer identification number (TIN), which covers several numbers for people and businesses.
The IRS and the Social Security Administration issue three main kinds.
- Social Security number (SSN), for individuals
- Individual taxpayer identification number (ITIN), for people who must report taxes but can’t get an SSN
- Employer identification number (EIN), for businesses, estates and trusts
So when a form asks for a tax ID, use the number that belongs to whoever the form is about. A personal loan application takes your SSN. A loan in your LLC’s name takes the LLC’s EIN.
Is an EIN the same as a FEIN or federal tax ID?
Yes. EIN, FEIN (federal employer identification number) and federal tax ID all describe the same nine-digit number from the IRS. State tax IDs are separate numbers that states issue for state taxes.
Who needs an EIN?
You need an EIN if your business has employees, operates as a corporation or partnership, or files employment or excise tax returns. The IRS lists a few other triggers on its “Do you need an EIN?” page.
The full IRS checklist asks whether any of these apply to you.
- You have employees.
- You operate as a corporation or a partnership, which includes a multi-member LLC taxed as a partnership.
- You file employment, excise, or alcohol, tobacco and firearms tax returns.
- You withhold tax on income, other than wages, paid to a non-resident alien.
- You have a Keogh plan.
- You work with certain organizations, such as trusts, estates, nonprofits, farmers’ cooperatives or plan administrators.
| Business type | Needs its own EIN? | Source |
|---|---|---|
| Sole proprietor with no employees and no excise tax | Typically no. The owner can use an SSN. | IRS: Do you need an EIN? |
| Single-member LLC (disregarded entity) with no employees and no excise tax | Typically no. The owner’s SSN or EIN is used for income tax. | IRS: Single member LLCs |
| Single-member LLC with employees or excise tax | Yes | IRS: Single member LLCs |
| Multi-member LLC or partnership | Yes | IRS: Do you need an EIN? |
| Corporation, or an LLC taxed as a corporation | Yes | IRS: Do you need an EIN? |
Does an LLC need an EIN?
A multi-member LLC needs an EIN, and so does any LLC with employees or certain excise taxes. A single-member LLC without either can usually report income tax under the owner’s SSN.
The IRS adds two practical points on its single-member LLC page. An LLC can get an EIN when a bank or state tax law asks for one, and the page says “most new single-member LLCs classified as disregarded entities will need to obtain an EIN.” See single-member LLCs for how they’re taxed.
Do I need an EIN if I’m self-employed?
Not always. A sole proprietor with no employees, no excise tax and no Keogh plan can typically use a Social Security number instead of an EIN.
Plenty of freelancers get one anyway so they can give clients an EIN on W-9 forms instead of their SSN. EINs for sole proprietors covers when you’d need a new number after forming an LLC.
Why get an EIN if you don’t need one?
An optional EIN keeps your Social Security number off client and vendor paperwork and makes a few business tasks simpler.
- Clients who send you a 1099 ask for an SSN or EIN. Giving the EIN keeps your SSN private, which can lower identity theft risk.
- Many banks ask for an EIN before they open a business account.
- Lenders and business credit bureaus can track your business’s payment history under its EIN, apart from your personal credit.
- You’ll need one before you run payroll, so having it early saves a step when you hire.
What does an EIN not do?
An EIN doesn’t create a business or change how it’s taxed. It only identifies a business that already exists, under the structure and tax election you chose.
You form an LLC with your state. Tax treatment, such as an S corporation election, is a separate filing with the IRS.
Do I get an EIN or form an LLC first?
Form the LLC first. The IRS tells applicants to “form your entity through the secretary of state before you apply for an EIN,” because the application asks for the legal name and formation details.
That guidance is on the IRS “Get an employer identification number” page.
How do I get an EIN?
You apply with the IRS, which doesn’t charge a fee. US businesses can apply online and usually get the number at the end of the session, according to the IRS. Fax and mail applications use Form SS-4.
International applicants apply by phone, fax or mail, and the IRS issues one EIN per responsible party per day across all methods. How to get an EIN has the hours, the information you’ll need and each step.
What if I lose my EIN?
Look at the confirmation notice the IRS sent when you applied, your past business tax returns, or your business bank’s records. The IRS can also confirm the number by phone.
The lost EIN guide lists every option. For written proof, request an IRS Letter 147C.
FAQ
A tax ID is any taxpayer identification number, including SSNs, ITINs and EINs. An EIN is the one issued to businesses, estates and trusts, so a form asking for your business’s tax ID usually wants that number.
No. The IRS says “You never have to pay a fee for an EIN.” Some companies charge to prepare and submit the application for you, but the number itself is free when you apply with the IRS.
Typically no. The IRS says sole proprietors and LLCs keep their EIN after a name or location change. A new number usually comes with a change in ownership or structure, such as incorporating a sole proprietorship.
No. You form an LLC by filing with your state. An EIN identifies the business for federal taxes after it exists and doesn’t change its legal structure.
Often, yes, for income tax. If the LLC has employees or owes certain excise taxes, the IRS requires it to have its own EIN, and many banks ask for one regardless.
Sources
- IRS: Do you need an EIN?
- IRS: Get an employer identification number (page reviewed Oct 16, 2026)
- IRS: Single member limited liability companies (reviewed Jul 27, 2026)
- IRS: When to get a new EIN (reviewed Jul 21, 2026)
- IRS: Employer identification number (reviewed Jul 17, 2026)