What Is an EIN and How to Apply for Free Through the IRS
Why Your Business Needs an EIN in 2025
Starting a business in 2025 means navigating regulations, taxes, and paperwork. One of the first steps many entrepreneurs encounter is getting an EIN.
Whether you’re forming an LLC, hiring employees, or opening a business bank account, an EIN is usually required. This guide breaks down what an EIN is, why you need one, and how to apply for EIN directly through the IRS.
What Is an EIN?
An EIN (Employer Identification Number), also called a Federal Tax Identification Number, is like a Social Security number for your business. It’s how the IRS tracks your company for federal tax purposes.
You need an EIN if you:
- Hire employees
- Operate as an LLC, partnership, or corporation
- Open a business bank account
- File federal taxes for your business
- Apply for business licenses or permits
Is It Really Free to Get an EIN?
Yes! Applying for an EIN directly through the IRS is completely free.
Be cautious of third-party websites charging fees. These services often offer to file for you but use the same free IRS form.
Step-by-Step: Apply for EIN Without Paying
Step-by-Step Guide (Online)
- Go to the IRS EIN Assistant: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- Click “Apply Online Now.”
- Choose the type of entity (e.g., LLC, Sole Proprietor, Corporation)
- Provide details about your business, including name and address
- List responsible party (usually you, the owner)
- Submit and download your EIN confirmation letter (CP 575)
🧠 Tip: The online application is available Monday to Friday, 7 a.m. to 10 p.m. Eastern Time.
Alternative Ways to Apply
If you prefer not to apply online, you can also:
- Fax Form SS-4 to the IRS
- Mail Form SS-4 to the IRS (takes longer)
- Call the IRS (for international applicants only)
Common Questions About EINs
Can I use my SSN instead of an EIN?
If you’re a sole proprietor with no employees, yes. But an EIN offers privacy and is often required by banks and vendors.
Does my LLC need a new EIN?
If you’re forming a new LLC, yes. Changing your LLC structure may also require a new EIN.
How long does it take to get an EIN?
Online applications get an EIN immediately. Fax or mail can take up to 4 weeks.
Conclusion
Getting an EIN is a critical step for most businesses in 2025. The good news? It’s quick, easy, and free when done through the IRS. Don’t fall for paid services or skip this essential requirement. Your EIN opens the door to banking, hiring, and compliance.
👉 Need help with more business setup steps? Book a free 15-minute strategy call to get personalized legal guidance for your business.
Last Updated: August 7, 2025