What is an EIN and do I need one?

An EIN (Employer Identification Number) is a 9-digit number assigned by the IRS that identifies your business for tax purposes — think of it as a Social Security Number for your company. You need an EIN if you plan to hire employees, open a business bank account, file business taxes, or apply for business credit.

Even single-member LLCs without employees benefit from having an EIN because most banks require one to open a business account, and using an EIN instead of your SSN on business documents protects your personal identity. The application is free and takes about 5 minutes online at irs.gov for US residents (you receive the number immediately). International founders without an SSN must apply via fax or mail, which takes 2-6 weeks.