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EIN (employer identification number)

A nine-digit number the IRS assigns to a business for tax filing, payroll, and banking. It is free from the IRS and takes minutes online.

What is EIN?

A nine-digit number the IRS assigns to a business for tax filing, payroll, and banking. It is free from the IRS and takes minutes online.

Why it matters on your return

Any business with employees, any partnership or corporation, and most LLCs need one; sole proprietors can use a Social Security number but usually should not. Third-party sites charge for what the IRS does for free.

Example

A new single-member LLC applies at IRS.gov, receives its EIN immediately, and uses it to open a business bank account and later to run payroll after an S election.

Do I need an EIN for a single-member LLC?

Not always, but you will for a business bank account at most banks, for payroll, and for an S election. Get it at formation.

Source: IRS: Apply for an Employer Identification Number

Last reviewed September 17, 2026. Tax rules change; confirm current law before acting.

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