How to Start a Business and Get an EIN

Quick answer

To start a business and get an EIN, first decide how the business will operate and complete any required state formation or registration. Then apply free for the Employer Identification Number directly with the IRS. An EIN is a federal tax ID; it does not create an LLC, grant a business license, or replace state and local tax registrations. For an LLC, corporation, partnership, or another state-created entity, the IRS says to form the entity with the state before applying for the EIN. [IRS: Employer identification number]({irs_ein})

The practical sequence is: choose the structure and location, clear the name and state requirements, form or register the entity if needed, prepare the EIN facts, apply through the appropriate IRS route, then address banking, tax, licenses, and payroll obligations that apply to your activity. The sections below distinguish those jobs so a federal ID number is not mistaken for permission to operate.

At a glance

An EIN is a federal tax ID—not a formation document or license

An Employer Identification Number (EIN) is the Internal Revenue Service’s federal tax ID for a business, tax-exempt organization, or other entity. It identifies the taxpayer to the IRS. The IRS also calls it a federal tax ID number. IRS: Employer identification number

That definition is useful because it prevents three common mix-ups:

The IRS says an EIN can be used immediately for many business needs such as opening a bank account, applying for business licenses, and filing a tax return by mail. It separately advises waiting up to two weeks before using a newly assigned EIN for certain electronic tax activities, including e-filing a return or making electronic tax deposits. IRS: when you can use an EIN A bank, platform, customer, landlord, or agency may still impose its own documentation rules; an EIN does not guarantee an account or approval.

Keep the roles separate: the state establishes or recognizes an entity where required, the IRS assigns the federal identifier, and other agencies regulate the activity. This guide explains the public process, not individualized legal or tax advice.

Decide whether this business needs an EIN before you apply

Many new businesses need an EIN, but “I am starting something” is not the whole test. The IRS says an EIN is needed if the business has employees, will pay employment, excise, or alcohol/tobacco/firearms taxes, or withholds nonwage income paid to a nonresident alien. The IRS also lists partnerships, LLCs, corporations, tax-exempt organizations, estates, many trusts, retirement plans, REMICs, and farmers’ cooperatives as entities that need an EIN. IRS: who needs an EIN

Use this screening matrix, then confirm unusual facts with the IRS instructions or a qualified adviser:

For a one-member LLC, the IRS generally treats the entity as disregarded for federal income tax unless it elects corporate treatment, while treating it separately for employment tax and certain excise taxes. IRS: single-member LLCs An EIN is not a tax election or a personal-liability outcome.

Choose the business setup path before touching the EIN application

Starting a business is a sequence of decisions, not a single federal form. The U.S. Small Business Administration (SBA) says the way and place a business registers depend on its structure and location. It also notes that someone conducting business as themselves under their legal name may not need to register, while an LLC, corporation, partnership, or nonprofit corporation will usually need state registration where it does business. SBA: register your business

A founder’s start-to-EIN decision framework

Three common paths are:

1. Operate as an individual under your own legal name. EIN, state-tax, and licensing obligations may still apply.
2. Use a DBA or trade name. A DBA lets a business operate under a different name, but requirements vary by state and locality. It is not a separate legal entity by itself. SBA: business registration and DBAs
3. Create a state-law entity. For an LLC, corporation, partnership, or nonprofit corporation, complete the applicable state filing first. The IRS specifically directs founders of legal entities to register with the state before requesting the EIN. IRS: before you apply

Entity choice depends on ownership, capital, contracts, profession, location, tax position, and risk. Settle those facts before applying.

Use this practical order to start a business and get an EIN

1. Define the activity and location. Write down what the business will sell or do, where it will operate, where people will work, and whether it handles a regulated activity. The SBA says license and permit needs vary with both activity and location, and may come from federal, state, county, or city agencies. SBA: licenses and permits
2. Choose the legal structure and legal name. Decide whether you are operating as an individual, partnership, LLC, corporation, or another permitted form. Check the relevant state’s entity/name system before investing in branding. Identify the correct DBA filing route if using one.
3. Form or register the entity when that path applies. For an LLC, partnership, corporation, or similar entity, file with the relevant state agency and retain the accepted formation/registration record. The IRS says to form a legal entity with the state before applying for an EIN. IRS: before you apply
4. Prepare the EIN facts once. Gather the exact legal name, trade name if any, addresses, responsible party’s tax ID, entity type, reason for applying, start/acquisition date, accounting-year end month, expected employee count, principal activity, and prior EIN history. These are the core fields on current Form SS-4. IRS Form SS-4
5. Choose one IRS application method. Eligible domestic applicants generally use the online tool. Others can use Form SS-4 by fax or mail; an applicant with no U.S. principal place of business may be eligible to apply by phone. The IRS recommends electronic application where possible and says to use only one method for an entity to avoid more than one EIN. IRS: SS-4 instructions
6. Save the confirmation and use the EIN deliberately. Print or save the assignment notice. The online tool instructs applicants to print the confirmation letter. Do not use the EIN in place of a personal SSN or ITIN. IRS: online EIN tool
7. Complete the separate follow-up work that applies. This can include banking, state tax registration, permits, payroll, insurance, contracts, records, and state reports; the SBA treats them as separate launch tasks. SBA: tax IDs and banking

Before applying, confirm that the legal name and entity type match the state record. The IRS says to enter the business name as it appears on formation or registration documents. IRS: business name and address rules

Prepare the EIN application facts before you begin

The IRS online application must be completed in one session and ends after 15 minutes of inactivity, so preparing the details first is more than a convenience. IRS: online application rules Use the current Form SS-4 as a planning checklist even if you apply online.

EIN application checklist

• Legal name of the entity or individual, plus trade name if different.
• Mailing and street addresses; county and state of principal business location.
• The responsible party’s name and SSN, ITIN, or EIN as applicable.
• Whether the applicant is an LLC, number of LLC members, and whether it was organized in the United States.
• Entity type; for a corporation, state or foreign country of incorporation.
• Reason for applying—for example, starting a new business, hiring employees, changing organization type, acquiring a business, or banking purpose.
• Start or acquisition date, accounting-year closing month, expected employee count, and first wage date if applicable.
• Principal business activity and a specific description of products or services.
• Whether the entity has previously applied for or received an EIN.

These are current SS-4 fields. IRS Form SS-4 A third-party designee needs signed authorization. A nominee with only limited formation authority cannot apply or be named; the responsible party is the actual person who owns, controls, or effectively controls the entity and its assets. IRS: responsible parties and nominees

Apply directly with the IRS: choose the route that matches your facts

Obtaining an EIN directly from the IRS is free. The IRS explicitly warns that you never have to pay an EIN fee, even though third-party sites may charge for help completing an application. IRS: get an EIN

Use the IRS SS-4 instructions and current Form SS-4 destinations rather than a copied address; destinations differ by U.S. versus non-U.S. location.

The online tool requires the responsible party’s SSN or ITIN and generally cannot be used with an EIN except for a government entity. For non-U.S. founders, the relevant online limits concern the organization’s and principal business’s U.S./territory status and the TIN requirement. IRS: online eligibility

Wisconsin LLC example: form first, then get the federal EIN

A Wisconsin LLC makes the federal ordering concrete. It is not a second Wisconsin formation guide: the comprehensive, canonical state resource is the Wisconsin LLC formation guide. This short example shows why “state first, EIN second” matters.

For a domestic Wisconsin LLC, the Wisconsin Department of Financial Institutions (DFI) provides Form 502, Articles of Organization. The DFI’s current online directions require the proposed name; registered agent and registered-office information; initial principal office; each organizer’s name and complete address; drafter; organizer signature; contact information; and payment. The online fee shown by DFI is $130, nonrefundable. Wisconsin DFI: LLC online directions

The current paper Form 502 shows a $170 filing fee, with an optional $100 expedited-service fee. It also states that the registered office must be an actual Wisconsin street address, not only a P.O. box or mailbox service; the form says annual reporting begins the year after formation. Wisconsin DFI Form 502 The DFI offers Form 502 through its online business-entity filing system. Wisconsin DFI: file online

So the concrete order is:

1. Confirm the name and prepare the DFI-required details.
2. File the Wisconsin Articles of Organization and retain the accepted state record.
3. Use the same legal name and entity facts on the IRS EIN application.
4. Complete Wisconsin tax, licensing, and local requirements that apply to the activity; an EIN does not complete those tasks.

The DFI says it is a filing registry and cannot certify that a business is operating legally. Wisconsin DFI: file online Separately check activity-specific approvals and maintain annual reports. For entity-record research, see the Wisconsin business register.

After the EIN: complete the launch checklist without assuming the work is finished

An EIN confirmation closes only the federal-ID task. Complete the applicable follow-up items:

Post-EIN launch checklist

• [ ] Save the assignment notice. If the EIN is later lost, IRS options include an entity transcript, eligible Business Tax Account records, or Letter 147C. IRS: EIN confirmation
• [ ] Open business banking when ready to accept or spend business funds. The SBA says this can follow the EIN; ask the bank for its entity, signer, and address documentation. SBA: tax IDs and banking
• [ ] Check state tax registration. A federal EIN and a state tax ID are different identifiers. The SBA says the state need depends on whether the business must pay state taxes and that rules vary by state. SBA: federal and state tax IDs
• [ ] Check licenses, permits, and zoning. Federal, state, county, or city rules can attach to the business activity and location. The SBA flags areas such as agriculture, alcohol, construction, food service, firearms, transport, and broadcasting as examples where specific licensing may apply. SBA: licenses and permits
• [ ] Set up payroll before paying workers, if applicable. An EIN does not configure payroll reporting, withholding, classification, benefits, or state employment accounts.
• [ ] Calendar state reports and renewal dates. For example, Wisconsin’s current LLC form states that annual reporting begins the year after formation. Other jurisdictions set their own schedules. Wisconsin DFI Form 502
• [ ] Keep legal and business records organized. Preserve formation records, agreements, EIN confirmation, licenses, tax correspondence, and business transactions. The document set you need depends on the structure and activity.

Do not rely on stale beneficial-ownership checklists. FinCEN’s current BOI page states that U.S. companies are exempt from BOI reporting requirements under its final rule effective August 14, 2026. It separately describes reporting rules for certain foreign entities registered to do business in the United States. FinCEN: current BOI reporting information Recheck FinCEN directly, particularly for a foreign entity or registration.

Avoid the mistakes that create EIN and launch problems

Applying before the entity exists. If you are creating an LLC, corporation, partnership, or other legal entity, the IRS says to register/form it with the state first. Applying out of sequence can create a mismatch or delay. IRS: before you apply

Paying for the number when the IRS issues it free. A paid service may offer administrative help, but the EIN itself is free directly from the IRS. Do not mistake a sponsored result for the government’s application. IRS: free direct application

Submitting duplicate applications. The IRS advises using only one method for each entity. Submitting online, fax, and mail applications for the same business can result in more than one EIN and cleanup work. IRS: SS-4 instructions

Listing a formation service or other nominee as the responsible party. The IRS says a nominee cannot apply for an EIN and should not be listed. The responsible party must actually own, control, or effectively control the entity and its assets. IRS: responsible parties and nominees

Using the EIN as a personal identifier. The SS-4 instructions say an EIN is for business activities and should not be used instead of a personal SSN or ITIN. IRS: SS-4 instructions

Assuming a federal EIN creates operating authority. It does not replace a state formation filing, a tax account, a professional license, local zoning approval, or activity-specific permit. Check them by activity and location. SBA: licenses and permits

Putting unnecessary sensitive information into public state filings. State formation records can be public. For example, Wisconsin’s DFI says data in a filed document becomes public and may be used for other purposes. Read the state form before supplying personal information. Wisconsin DFI Form 502

Treating an EIN as permanent proof that no follow-up is needed. Ownership or structural changes can require a new EIN; a name or address change alone generally does not. IRS: when to get a new EIN

Keep the responsible-party record and EIN history accurate

The IRS expects an EIN application to name a real responsible party. If that responsible party, the business address, or the location changes, use Form 8822-B to report the change within 60 days, according to the IRS. IRS: responsible-party changes Keep a dated copy of the filing and the EIN notice with the business records.

A changed name or address is not, by itself, normally a reason to obtain a new EIN. The IRS says a new EIN is generally needed when ownership or structure changes, then gives entity-specific examples. A sole proprietor that incorporates or forms a partnership, for example, is listed as needing a new EIN; an LLC that terminates and forms a new corporation or partnership is also listed. IRS: when to get a new EIN

Use the IRS’s current entity-specific page rather than guessing from the word “conversion,” a tax-election change, or a name update. The answer can differ by entity type and by whether employment or excise taxes are involved. Do not reuse an old business’s EIN merely because the brand, address, or owners appear similar.

Official sources, verification scope, and what to recheck

Sources checked: 2026-10-01. Material federal claims in this guide were checked against current IRS pages and Form SS-4 materials; general launch guidance was checked against SBA pages; the Wisconsin illustration was checked against Wisconsin DFI materials; BOI information was checked against FinCEN.

Recheck time-sensitive details—IRS tools, numbers, addresses, forms, state fees, annual reports, permits, tax accounts, and BOI rules—before filing. This guide does not invent a nationwide startup-cost total because fees, permits, insurance, banking, and professional help vary.

For a focused entity-choice resource, founders building a technical consulting practice can read LLC for IT consulting businesses. If you are deciding whether a filing service is worth using rather than applying directly, compare the scope of company incorporation services with the official self-service route; the IRS EIN itself remains free directly from the IRS.

Start with the next action that fits your setup

If you have not selected a legal structure or confirmed where you will operate, do that before beginning the EIN form. If the state entity is already formed and the facts are ready, use the IRS’s direct application route. For readers who want to compare DIY filing with professional administrative help, review the scope questions on company incorporation services. No formation service can replace the founder’s responsibility to provide accurate information or to complete applicable tax, licensing, and reporting duties.