Starting Strong: How to Get an EIN for Your New Business

Jeremy Springer
23 hours ago
3 min read

Congratulations on launching a new business! One of the first official steps is getting an Employer Identification Number, or EIN. It’s a small piece of paperwork that carries a lot of weight. Think of it as your business’s Social Security number. Without it, many of the next steps—opening a bank account, hiring employees, or filing certain tax returns—can’t happen.

The good news: getting an EIN is straightforward, and in most cases, free.

Two men in business attire smile and converse, holding papers and a clipboard, in a bright office setting with large windows.

What Is an EIN, and Why Does It Matter?

An EIN is issued by the Internal Revenue Service to identify your business for federal tax purposes. Even if you’re not planning to hire employees right away, you may still need one depending on how your business is set up.

You will generally need an EIN if you:

Operate as a corporation or partnership
Hire employees (or plan to)
File certain tax returns, like payroll or excise taxes
Want to open a business bank account separate from your personal finances

Even many single-member LLCs choose to get an EIN early to keep things clean and professional.

When Should You Apply?

Timing matters more than people expect.

You should apply for an EIN after your business is legally formed with your state, but before you:

Open a business bank account
Run payroll
File federal or state tax forms tied to the business

Applying too early (before formation) or too late (when you’re trying to move quickly) can create unnecessary friction.

How to Apply for an EIN

Most business owners apply online through the IRS, and it’s typically the fastest option. If everything is in order, you’ll receive your EIN immediately.

Here’s what you’ll need ready:

Legal name of the business (as registered with your state)
Responsible party’s name and Social Security number
Business address (physical address preferred)
Entity type (LLC, corporation, partnership, etc.)
Date the business started or was acquired

The application itself is not complicated, but accuracy matters. A small mistake—like mismatching your legal name or formation date—can lead to delays or follow-up with the IRS.

Common Mistakes to Avoid

This is where we see business owners lose time.

Applying Multiple Times

If you don’t receive confirmation right away, don’t assume it failed and submit again. Duplicate EINs create confusion that can take weeks to unwind.

Using the Wrong Business Name

Your EIN should match your official registration exactly. Even small differences can cause issues later with banking or tax filings.

Paying for Something That’s Free

The EIN application is free through the IRS. Third-party sites often charge for the same process.

Not Keeping Your Confirmation Letter

Once issued, your EIN confirmation letter is important. Banks and agencies will ask for it. Save a digital and physical copy.

A Quick Word on Structure

Your EIN ties directly to your business structure. If you change your entity type down the road — for example, moving from a sole proprietorship to an LLC or electing S corporation status — you may need a new EIN.

This is one of those moments where getting advice upfront can save you from rework later.

3 Takeaways to Keep in Mind

An EIN is a foundational step, not a formality. It unlocks banking, hiring, and tax compliance.
Apply at the right time — after formation, before operations begin.
Accuracy on the application matters more than speed.

Legal Disclaimer: This post contains general information for taxpayers and should not be relied upon as the only source of authority. Taxpayers should seek professional tax advice for more information. This information was current at time of posting; we are not responsible for updating this or any blog post/article for subsequent changes in the law or its interpretation.