Do I need an EIN if I'm a sole proprietor with no employees?

Technically no — sole props without employees can use their SSN. But you should get one anyway. Every time you open a bank account, apply for a business credit card, or fill out a Form W-9 for a client, you're handing out your Social Security number. An EIN protects your SSN and takes five minutes to get.

Can I have more than one EIN?

Yes. Each separate business entity (each LLC, each corporation) gets its own EIN. If you own multiple LLCs, each one has its own EIN. A sole prop and an LLC are treated as separate — if you form an LLC from an existing sole prop, you need a new EIN.

What if I lose my EIN?

Check your EIN confirmation letter (the IRS sends it after you apply — save this). Or look at any previously filed tax return, your business bank account paperwork, or your state formation documents. If you're still stuck, call the IRS Business & Specialty Tax Line at 800-829-4933.

Does an EIN cost anything to maintain?

No. The EIN itself is free and permanent — once assigned to your business, it doesn't expire and you don't pay anything to keep it. You might pay a CPA or registered agent service for other things, but the EIN itself is entirely free.

Do I need a new EIN if I change my business name or address?

Usually no. A name or address change doesn't require a new EIN. You'd need a new one if you change your business structure (from sole prop to LLC, for example), take on a partner, or incorporate. The IRS has a full list at IRS.gov — it's shorter than you'd think.

Business setup

How to Get an EIN for Your Business (Free, Online, Takes 5 Minutes)

What an EIN is, why every business owner needs one, and how to get yours for free directly from the IRS — without paying a third-party service.

Written by Matt Reese, CPA · 4 min read · Published April 2026·Share on LinkedIn

Key Takeaways

An EIN is a free, 9-digit number from the IRS that identifies your business — like a Social Security number, but for the company.
You get one in minutes at IRS.gov/ein. Never pay a third-party service to do this for you.
Even a sole prop should get an EIN to avoid giving out their SSN to every vendor and client.
You need an EIN to open a business bank account, file employment taxes, and pay contractors.

What an EIN is (and the one-sentence version)

An EIN — Employer Identification Number — is a 9-digit number the IRS uses to identify your business. It looks like this: 12-3456789. Think of it as a Social Security number for your company, except it applies to businesses instead of people.

The name is confusing because it includes the word “employer,” which makes it sound like you need employees. You don’t. Every business entity — a solo LLC, a single-member S-corp, a freelancer who wants to protect their SSN — should have one.

Seven reasons to get one today

Open a business bank account. Every bank requires an EIN to open a business account. You cannot separate business and personal finances — which you absolutely must do — without one.
Stop giving out your Social Security number.Every time a client asks you to fill out a W-9 form (so they can 1099 you), you need a tax ID. Without an EIN, that’s your SSN going to every vendor, client, and contractor in your network. SSN theft is real. An EIN is a free fix.
File business taxes. Your business tax return (Schedule C, Form 1120-S, Form 1065 for partnerships) requires an EIN.
Hire employees.You cannot process payroll, withhold taxes, or file employment tax returns without an EIN. It’s required before your first hire.
Pay contractors and file 1099s.When you pay a contractor $600 or more in a year, you’re required to file a Form 1099-NEC with the IRS. You need your EIN to do that.
Open a business credit card. Business credit card applications require either an SSN or an EIN. Use the EIN.
Look like a real business.Providing an EIN on a W-9 or a contract signals that you take your business seriously. It’s a small thing, but it matters.

Never pay for this

You will find dozens of websites offering to get you an EIN for $49–$149. They are unnecessary. The IRS provides this service for free at IRS.gov/ein. Anyone charging you for the application is just filling out the same free form you could fill out yourself in five minutes.

How to get your EIN (step by step)

Go to IRS.gov/ein.Search “EIN online application” or go directly to the IRS EIN Assistant. It’s the official government website — irs.gov, not any other domain.
Click “Apply Online Now.”You’ll be taken to the EIN Assistant. The application is only available Monday through Friday, 7 a.m. to 10 p.m. Eastern time.
Select your entity type. Sole proprietor, LLC, S-corp, partnership, corporation, etc. Choose whatever matches your actual business structure — this affects how the EIN is classified, so be accurate.
Answer the questions. The IRS asks about the reason for applying (started a new business, hired employees, etc.), your business address, and the name and SSN of the responsible party (you, as the owner). The whole thing takes about five minutes.
Download and save the confirmation letter. At the end, you’ll see your EIN on screen. The IRS also shows a PDF confirmation letter (Form CP 575 or CP 575E). Download this immediately— the IRS doesn’t give you an easy way to recover the letter later. Save it in your business documents folder.

Write it down in two places

The day you get your EIN, add it to: (1) a note in your password manager or secure notes app, and (2) a physical folder with your other business formation documents. You’ll be asked for it every time you open a new account or fill out a W-9.

What to do with it immediately

Once you have your EIN, here’s what to do next:

Open a business bank account. Bring your EIN, your state formation documents (if you have an LLC), and a government ID to the bank. Some banks let you do this online.
Fill out your W-9 form. The W-9 is what clients use to collect your tax information before paying you. You can download a blank W-9 from IRS.gov, fill in your name, business name, EIN, and address, sign it, and have it ready to send whenever a client asks.
Update your accounting software. In QuickBooks or Xero, add your EIN to your company settings — it will pre-populate on tax forms.
Give it to your CPA. If you work with a tax professional, they need your EIN to file your business returns.

EIN vs. state tax ID — are they the same?

No. An EIN is a federal number from the IRS. Many states also issue their own tax identification numbers for state income tax, sales tax, or employer registration purposes. These are separate.

ID Type	Issued by	What it’s for	How to get it
EIN	IRS (federal)	Federal taxes, business identification, bank accounts, W-9s	Free at IRS.gov/ein — takes 5 minutes
State income tax ID	State revenue department	State income tax filings, employer registration	Register with your state's tax agency (e.g., California FTB)
Sales tax permit / seller's permit	State revenue department	Collecting and remitting sales tax	Register at your state's sales tax agency (e.g., California CDTFA)
State employer account number	State unemployment agency	State payroll taxes, unemployment insurance	Register when you hire your first employee

Do you need a new EIN when you form an LLC?

Yes — if you were previously operating as a sole prop under your SSN and you now form an LLC, the LLC is a new, separate legal entity. It needs its own EIN. Your sole prop EIN (or SSN) stays with the old sole prop activity.

Similarly, if you convert an LLC to an S-corp election, you don’t need a new EIN (it’s the same legal entity, just taxed differently). But if you form a brand new corporation, that gets a new EIN.

When in doubt: if it’s a new legal entity, it needs a new EIN. If it’s the same entity with a different tax treatment or a new name, you keep the same EIN.

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Frequently asked

Questions owners actually ask

Do I need an EIN if I'm a sole proprietor with no employees?: Technically no — sole props without employees can use their SSN. But you should get one anyway. Every time you open a bank account, apply for a business credit card, or fill out a Form W-9 for a client, you're handing out your Social Security number. An EIN protects your SSN and takes five minutes to get.
Can I have more than one EIN?: Yes. Each separate business entity (each LLC, each corporation) gets its own EIN. If you own multiple LLCs, each one has its own EIN. A sole prop and an LLC are treated as separate — if you form an LLC from an existing sole prop, you need a new EIN.
What if I lose my EIN?: Check your EIN confirmation letter (the IRS sends it after you apply — save this). Or look at any previously filed tax return, your business bank account paperwork, or your state formation documents. If you're still stuck, call the IRS Business & Specialty Tax Line at 800-829-4933.
Does an EIN cost anything to maintain?: No. The EIN itself is free and permanent — once assigned to your business, it doesn't expire and you don't pay anything to keep it. You might pay a CPA or registered agent service for other things, but the EIN itself is entirely free.
Do I need a new EIN if I change my business name or address?: Usually no. A name or address change doesn't require a new EIN. You'd need a new one if you change your business structure (from sole prop to LLC, for example), take on a partner, or incorporate. The IRS has a full list at IRS.gov — it's shorter than you'd think.

Take the next step

Turn tax questions into a plan. Talk with Matt or see how we work with operating business owners.

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Educational content only.This article is for informational purposes and does not constitute tax, legal, or investment advice. Every owner’s facts are different; consult a qualified CPA and advisor before acting. Tax and accounting services are provided through Matt Reese, CPA; investment advisory services are provided through Measured Risk Portfolios, a registered investment adviser. Matt Reese, CPA and Measured Risk Portfolios are separate entities; clients are not required to engage both.