If you plan to hire employees, open a business bank account, or operate formally, getting an Employer Identification Number (EIN) is one of your first steps. Your EIN acts like a Social Security number for your business (for tax and identification purposes). You’ll need it for payroll, taxes, banking, and more.
The process is free and (when done online) can give you your EIN immediately, but there are important rules and restrictions to understand. Below is a full guide.
An Employer Identification Number (EIN) is a unique, nine-digit number issued by the Internal Revenue Service (IRS) to identify your business for federal tax filings.
You’ll use your EIN to:
File payroll tax returns
Issue W-2s and 1099s
Open a business bank account
Apply for licenses and permits
Distinguish business finances from personal
Without it, you can’t legally pay employees or handle many tax obligations correctly.
Related reading: Payroll Tips for Small Businesses: Save Time and Reduce Payroll Errors
You generally need an EIN if your business:
Has one or more employees
Operates as a corporation or partnership
Withholds taxes on nonresident aliens
Files certain excise tax returns
Even if you're a sole proprietor with no employees, having an EIN is often helpful; many banks require it, and it helps separate your personal and business finances.
One EIN per day rule: The IRS allows one EIN application per responsible party per day. If you're overseeing multiple businesses, you can’t submit all their applications on the same day.
Exact business name: The name you use on your EIN application should closely match your legal entity name, including suffixes like “LLC” or “Corp.” If the names don’t match, you risk banking issues or rejected filings.
Here’s a step-by-step guide to apply, and the options you’ll have:
Go to the IRS “Apply for an EIN” online portal.
Note: The online tool operates Monday through Friday, from 7:00 a.m. to 10:00 p.m. Eastern Time.
Select your legal entity type (sole proprietorship, LLC, corporation, etc.).
Fill in details about your entity and the “responsible party.”
If approved, you’ll get the EIN immediately online and can download a confirmation notice.
Save a copy of your confirmation notice as it is your official proof of the EIN.
Fax: Fax a completed Form SS-4 to the IRS (855-641-6935). If you supply a return fax number, you may receive the EIN within about four business days.
Mail: Submit Form SS-4 by mail. Expect around 4 weeks for processing.
Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
International applicants: If located outside the U.S., you can call the IRS at +1-267-941-1099 to apply by phone. You can also fax Form SS-4 to 855-215-1627 (within the U.S.) or 304-707-9471 (outside the U.S.), or mail to:
Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999
Omitting “LLC,” “Corp,” or the correct designation when entering your business name
Applying before your entity information is properly documented
Submitting multiple EIN requests in one day for one responsible party
Losing the confirmation notice — always keep a copy
Using a mismatched name or EIN in tax filings or banking, which can trigger rejections
With proper setup, you can then use Excelforce's Payroll Software to simplify payroll, reporting, and tax filings.
Once your EIN is in hand, you can:
Report employee wages and withholdings to the IRS
Prepare and file W-2s and 1099s
Enable direct deposit and other payroll admin
Offer retirement, health benefits, and other HR services
Your EIN becomes the anchor tying payroll, HR, and tax compliance together.
Explore how Excelforce supports these functions via: Payroll, Time & Labor Management, HR Software, Recruitment, and Benefits.
Getting an EIN is a small but essential step to building a legal, functioning business that can hire employees, process payroll, and interact with tax authorities. The process is free, mostly instant (if done online during allowed hours), and foundational to everything that comes next in payroll and HR.
Once your EIN is issued, let Excelforce help you turn that foundation into a streamlined payroll, HR, and compliance engine.
For detailed instructions straight from the source, see the IRS’s official “Get an Employer Identification Number” page.
You can also watch this video on how to get an EIN for Your Business that walks you through it step-by-step.