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An EIN is a federal tax ID number for businesses, tax-exempt organizations and other entities. The IRS issues it. You use it on tax returns, on payroll filings and when you open a business bank account. Getting one costs nothing: the IRS states that you never have to pay a fee for an EIN.
What does an EIN do?
It identifies your company to the IRS, the same way a Social Security number identifies you. Your tax returns, employment tax deposits and information returns carry it. A bank asks for it before it opens an account in a company name. A payment processor or marketplace asks for it when it reports your sales.
Because the number belongs to the entity, it stays with the company when you move the office or rename the business.
Who needs an EIN?
The IRS says you need an EIN if you have employees, if you pay employment or excise taxes, or if you withhold taxes on income other than wages paid to a non-resident alien. It also lists partnerships, LLCs, corporations, tax-exempt organizations, estates, trusts and retirement plans among the entities that need one. The source is the IRS page on employer ID numbers.
A sole proprietor with no employees often does not need one for federal tax purposes. The same IRS page says you can still request an EIN for banking or state tax reasons. Many owners do, so they can keep their Social Security number off invoices and forms.
For LLCs, read our guide on when an LLC needs an EIN.
How is an EIN different from a state tax ID?
They are two numbers from two offices. The EIN comes from the IRS. A state tax ID comes from your state's revenue or tax department when you register for sales tax, withholding or unemployment insurance. Some states also use a separate number for the business entity itself, which you see in the Secretary of State record.
If someone asks for your "tax ID", ask which one they mean. Our page on state tax ID lookup shows where to find the state side.
When do you need a new EIN?
The IRS says you need a new EIN, in general, when you change your entity's ownership or structure. A sole proprietor who forms an LLC with other members is one example. A change of name, address or responsible party does not need a new number.
Where do you find an EIN you already have?
Look at the IRS notice that came when the number was issued, at an earlier tax return, or at your bank account paperwork. If you lost all of those, the IRS can help you by phone or mail, but this site cannot recover it for you.
How do you get one?
You apply to the IRS. The fastest route is the online application for entities formed in the US. Owners abroad and owners without an SSN or ITIN have other routes. Our guides cover both: how to get an EIN and EIN without an SSN.
If you are forming a company first, the EIN comes after the state approves your filing. Our Texas LLC and Florida LLC guides show that order for two popular states.
This is general information, not tax or legal advice. An accountant can confirm which numbers your business needs.