Learn how to apply for a federal tax id the right way. Get step by step guidance on the free IRS EIN application and what to prepare before you start.
By Omer Aydin ·
A federal tax ID, also called an Employer Identification Number (EIN), is a nine-digit number the IRS assigns to your business. You can apply for one free through the IRS online assistant and receive it immediately. Most businesses that operate as anything other than a sole proprietorship with no employees need one before they can open a bank account or hire staff.
Getting the EIN step right matters more than most founders expect. The IRS application is free and fast when you prepare correctly, but a single misstep, like closing the browser mid-session or applying before your entity is registered, can cost you time you don't have. This guide covers the online method and what to prepare before you start.
This article covers the mechanics of the EIN application process. It is not legal or tax advice. For questions specific to your business structure or tax obligations, work with a qualified attorney or CPA.
Yes. "Federal tax ID" and "Employer Identification Number" refer to the same nine-digit number, formatted as XX-XXXXXXX. The IRS uses both terms, which is why you'll see them used interchangeably on government forms, bank applications, and state filings.
The number identifies your business to the federal government the way a Social Security Number identifies an individual. You'll use it to file federal taxes, open a business bank account, apply for business licenses, and pay employees. Some states also use your EIN as the basis for a state tax ID, though state requirements vary.
You need an EIN if any of the following apply to your business. The IRS is explicit about this list, and it covers the vast majority of registered entities.
Sole proprietors with no employees are the main exception. You can use your Social Security Number as your tax ID in that case, and many do. But even sole proprietors often choose to get an EIN to keep personal and business finances separate and to avoid sharing their SSN with clients or vendors.
You do not need an active business to apply. The IRS allows you to apply once you have a legitimate purpose for the number, including a business you intend to start. According to the Small Business & Entrepreneurship Council's 2026 report, total business applications for EINs reached 531,423 in June 2026 alone. Of those, 149,714 were high-propensity applications, meaning businesses most likely to become payroll employers. That volume shows how early in the formation process founders are moving on the EIN.
The IRS online EIN assistant is the fastest method. You receive your EIN immediately upon completing the application. Before you start, read through all the steps below, because the session rules are strict. You can also apply for a federal tax ID through a formation service that handles the sequence for you.
One limit applies regardless of which method you use: the IRS issues only one EIN per responsible party per day, across all application methods. If your formation service is applying on your behalf, that counts toward the same daily limit.
If you can't or prefer not to use the online tool, the IRS accepts applications through three other channels. All of them use Form SS-4, which you can download from the IRS website.
Whichever method you use, the one-EIN-per-responsible-party-per-day limit still applies. Plan accordingly if you're forming multiple entities or working with a designee who may be processing other applications the same day.
Your EIN doesn't expire and the IRS doesn't reassign it, so if you've applied before, the number is retrievable.
Start with the confirmation letter from your original application. If you saved or printed it, the EIN appears at the top. If you didn't, check any previously filed federal tax return, your business bank account paperwork, or a state business license, all of which typically display the EIN.
If none of those are available, call the IRS Business & Specialty Tax Line directly. They can confirm your EIN after verifying your identity as the responsible party. The IRS does not provide EIN lookup tools to the general public, so a phone call is the official route when documents aren't available.
For more detail on tracking down an existing number, the guide on how to find your business EIN number covers each document source and the IRS call process step by step. The Lovie formation resources page also lists tools and guides for each stage of company setup.
Applying for an EIN is straightforward on its own. The harder part is doing it in the right sequence: after your entity is formed in the right state, with the correct responsible party named, and without creating a mismatch between your formation documents and your IRS records. That's where most founders run into trouble, not the application itself.
Lovie Formation is an AI-powered company formation service for tech startups. A founder describes their business through a chat interface, and Lovie prepares and submits the state formation documents, assists with the IRS EIN application, and manages ongoing registered agent and compliance requirements. The EIN step happens in context, after the entity exists and the responsible party is correctly identified, not as a standalone task you have to coordinate separately.
The IRS does not charge any fee to apply for or receive an EIN. The application is free regardless of which method you use: online, phone, fax, or mail. If you use a formation service or attorney to handle the application on your behalf, any fee you pay is for that service, not for the EIN itself. Be cautious of third-party websites that charge for EIN applications; they are not the IRS.
The online application is immediate. Fax and mail take significantly longer, typically weeks rather than days, depending on IRS processing volume. If your timeline is tight, such as before a bank account opening or a contract signing, use the online tool or the phone option for international applicants. Build in extra time if you choose an offline method.
The IRS allows you to apply once you have a legitimate purpose for the number, including a business you intend to form. That said, applying before your entity is officially registered in your state can create a mismatch between your IRS records and your state documents. In most cases, file your formation documents first, then apply for the EIN immediately after.
Your EIN is permanent and doesn't change, so you can recover it. Check prior federal tax returns, business bank account documents, or state filings where the EIN appears. If you can't locate it through documents, call the IRS Business & Specialty Tax Line. After verifying your identity as the responsible party, they can confirm the number. The IRS does not offer an online self-service lookup for this.
Yes. Non-U.S. citizens can apply for an EIN for a U.S.-registered business. If you don't have a Social Security Number, you can use an Individual Taxpayer Identification Number (ITIN) as the responsible party's identifier. If you don't have either, the IRS has a specific process for that situation, and you'll need to apply by phone or mail rather than online. Consult a tax professional if your situation involves a foreign-owned U.S. entity, as the filing requirements can be more involved.
A federal tax ID is a nine-digit number the IRS issues free of charge. Most businesses need one before they can open a bank account, hire employees, or file federal taxes. The online application is the fastest route, and you get your EIN the same day, provided you complete the session without interruption and your entity is already formed.
Before you apply, confirm your entity is registered in your state and that you have the responsible party's information ready. If you want the EIN step handled in the right sequence alongside state registration and compliance setup, that's worth factoring into how you approach formation from the start.
