How to Get an EIN for Free as a Freelancer, Step by Step

An Employer Identification Number, or EIN, is a nine-digit number the IRS assigns to businesses. Think of it as a Social Security number for your business. Getting one costs nothing, takes about ten minutes online and can protect your personal information.

Do freelancers need one

A sole proprietor with no employees can usually use a Social Security number for tax purposes, so an EIN is optional. You need an EIN if you:

• Form an LLC with more than one member, or elect S corporation status.
• Hire employees.
• Open certain kinds of business accounts or retirement plans, such as a Solo 401(k), which requires one.
• Operate as a corporation or partnership.

Even when optional, many freelancers get one to avoid putting their Social Security number on forms for clients and banks.

Benefits of getting an EIN

• Privacy: you give clients an EIN on Form W-9 instead of your Social Security number.
• Banking: many banks ask for it when opening a business account.
• Credibility: it separates your business identity from your personal one.
• Flexibility: you already have it when you form an LLC or hire.

Step by step

1. Check your eligibility. The responsible party must have a valid Social Security number or taxpayer identification number, and the business must be located in the United States or its territories to apply online.
2. Gather your information. You need your legal name, address, business structure, the reason for applying and your Social Security number.
3. Go to the IRS website. Use the official IRS online EIN application, which is available on weekdays during limited hours, Eastern time, and cannot be completed after a session times out.
4. Choose your structure. Select sole proprietor, LLC, partnership or the structure that applies. Answer each question carefully.
5. Submit and receive your EIN. The number is issued immediately after you finish.
6. Download and save the confirmation. Print or save the PDF letter, since you will need it to open bank accounts and file taxes.

Paper or phone alternatives

If you cannot apply online, you can submit Form SS-4 by mail or fax, which takes longer. International applicants without a Social Security number or taxpayer identification number can apply by phone, using a different process.

Beware of paid services

Some websites charge $50 to $250 to file the same form that the IRS handles for free. They may look official. The web address of the IRS ends in .gov. If a site asks for a fee to issue an EIN, you are not at the IRS.

After you get it

• Use it on Form W-9 and client paperwork.
• Give it to your bank to open a business account.
• Add it to invoices if you like.
• Keep the confirmation letter in a safe place.
• Use the same EIN for your Solo 401(k), LLC or S corporation if you create one.

One number per business

Your EIN stays with your business. You generally do not need a new one when you move, change a business name or switch from sole proprietor to LLC with the same owner in some cases. A change of structure can require a new number, so check the IRS guidance first.

Common mistakes

• Paying a third party for something free.
• Applying for several EINs by mistake.
• Losing the confirmation letter. You can request a replacement from the IRS if needed.

Frequently asked questions

Do I need an EIN if I am a sole proprietor?

It is optional unless you hire employees or meet another requirement.

Can I apply if I live outside the US?

There is a different process for foreign applicants.