What Is a Tax ID Number?
A Tax ID Number or EIN is a unique nine-digit number issued by the Internal Revenue Service (IRS) to identify your business for tax purposes. Think of it as a Social Security Number (SSN) for your company.
Why Do You Need a Tax ID for Your Business?
You need an EIN if:
- You plan to hire employees
- You operate your business as a partnership or corporation
- You need to open a business bank account
- You want to apply for business credit
- You are required to file certain federal taxes
Even single-member LLCs and sole proprietors often apply for an EIN to separate personal and business finances.
How to Get a Tax ID Number for a Small Business: Step-by-Step
Step 1: Determine Eligibility
You must have a valid Taxpayer Identification Number (SSN, ITIN, or existing EIN) and your business must be located in the United States or U.S. territories.
Step 2: Gather Required Information
To apply, you’ll need:
- Legal business name
- Business structure (LLC, corporation, partnership, etc.)
- Responsible party’s name and SSN/ITIN
- Business address and phone number
- Type of business and reason for applying
Step 3: Apply for Your EIN
You can apply through the IRS in several ways:
Online (Fastest)
- Visit the IRS EIN Assistant: irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- Available Monday–Friday, 7 AM–10 PM (EST)
- Immediate EIN issued upon completion
By Mail or Fax
- Fill out Form SS-4
- Fax to (855) 641-6935 or mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999 - By Phone (International Applicants)
- Call 267-941-1099 (not toll-free) if applying from outside the U.S.
How Much Does It Cost to Get an EIN?
It’s completely free to apply for a Tax ID directly through the IRS.
How Long Does It Take?
- Online: Immediate
- Fax: About 4 business days
- Mail: Around 4–5 weeks
Final Thoughts
Understanding how to get a tax ID number for a small business is key to running a compliant and professional operation. With a valid EIN, you can hire employees, pay taxes, open business accounts, and more.
