Employer Identification Number (EIN)
An Employer Identification Number (EIN), also called a Federal Tax Identification Number, is a 9-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for federal tax purposes. The EIN format is XX-XXXXXXX.
Definition and overview
An Employer Identification Number (EIN), also called a Federal Tax Identification Number, is a 9-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for federal tax purposes. The EIN format is XX-XXXXXXX. The concept is foundational to US business law and tax practice. Most founders encounter employer identification number (ein) either at formation, during major business changes, or in connection with compliance filings.
History and legal basis
The EIN system was established under the Internal Revenue Code of 1954, replacing earlier business identification systems. The IRS began assigning EINs en masse with the introduction of computerized tax filing in the 1960s. Online EIN application (immediate issuance for US founders) launched in 2007.
When to use employer identification number (ein)
Employer Identification Number (EIN) typically applies in these situations:
- At formation. Many of these concepts are decided when the entity is first created.
- During growth stages. As businesses scale, the concept may become more relevant or change in application.
- Tax planning. Most concepts in this area have direct tax implications.
- Liability and asset protection. Many of these structures exist primarily to manage legal and financial risk.
- Investor and M&A activity. Funded startups and acquisition targets need precise compliance with these concepts.
How to set up or file
- Research applicable rules. Employer Identification Number (EIN) is governed by a combination of federal (IRS, FinCEN) and state law. Verify current rules.
- Gather required information. Most filings require entity details, identifying information, and supporting documentation.
- Complete the form or filing. Federal filings typically go to IRS, FinCEN, or USPTO. State filings go to the Secretary of State or applicable state agency.
- Pay any applicable fees. Federal fees vary; state fees range from free to several hundred dollars depending on filing type.
- Maintain documentation. Keep filed copies and supporting records for at least 7 years for tax purposes.
- Track ongoing compliance. Many concepts in this area trigger ongoing filing or reporting requirements.
Common mistakes
- Missing deadlines. Federal and state deadlines for filings related to employer identification number (ein) are strict. Missing them often results in penalties.
- Incorrect classification. Many concepts have multiple sub-types that affect treatment. Get the classification right at the start.
- Inadequate documentation. When something goes wrong, documentation determines outcomes. Maintain clear records.
- Ignoring state variations. US business law varies significantly state-to-state. What's true in Delaware may differ in California.
- DIY without verification. Employer Identification Number (EIN) can be DIYed, but mistakes are expensive. Verify with a professional when uncertain.
Costs and fees
Costs associated with employer identification number (ein) vary by type, state, and complexity. File.Business handles most employer identification number (ein) services as part of our compliance plans (starting at $99/yr); we pass through state and federal filing fees at cost. Compare specific cost breakdowns across all 51 jurisdictions using our cost-by-state calculators.
Get help with employer identification number (ein)
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Start my business Talk to a specialistFAQ
What is an EIN?
An EIN, or Employer Identification Number, is a nine-digit federal tax ID the IRS assigns to a business, functioning like a Social Security number for your company. You use it to open a business bank account, hire employees, and file taxes, and it keeps your personal SSN off business paperwork. We obtain the EIN for your entity as part of setting it up.
Do I need an EIN for my LLC?
Almost always: you need one to open a business bank account, hire, or file most business taxes, and even a single-member LLC benefits from its own EIN to keep your SSN private. A sole proprietor with no employees can sometimes use their SSN, but an EIN is cleaner. We obtain it for your LLC alongside formation.
Is an EIN free?
Yes: the IRS charges nothing for an EIN, and anyone implying a government fee for the number itself is misleading you. Our value is doing it correctly and fast, and handling the harder path for founders without an SSN. Current service pricing is on the pricing page.
How do I get an EIN?
You apply to the IRS, online for those with an SSN, which issues it immediately, or by fax or mail for foreign founders without one, which is slower. Applying in the entity's exact legal name matters so the IRS and state records match. We handle the application so it is right the first time.
Can a foreign founder get an EIN?
Yes, without an SSN, through the IRS's process for foreign responsible parties, though it takes longer than the online route. It is a common and necessary step for international owners who want US banking. We obtain the EIN for your US entity even without a US ID. See international founders.
Is an EIN the same as a state tax ID?
No: the EIN is federal, while states issue their own tax or employer numbers when you register for payroll or sales tax. They are different identifiers used for different filings. We obtain the EIN and complete the state registrations your business actually needs.
Does each business need its own EIN?
Generally yes: each separate LLC or corporation should have its own EIN, since sharing one across entities blurs the tax and liability lines that keep them distinct. We obtain a separate EIN per entity, which matters especially in a holding structure.
Do I get the EIN before or after forming the LLC?
You generally form the entity with the state first, then get the EIN in its exact legal name so the two records match cleanly and your bank does not flag a mismatch. We sequence the formation and the EIN so they line up rather than creating a conflict.
Does File.Business obtain EINs?
Yes: we obtain the federal EIN as part of forming or registering your entity, including handling the alternate process for non-US founders without an SSN, so you leave with both the state registration and the federal tax ID rather than chasing the IRS separately.
How we deliver, end-to-end.
Four-step path from request to confirmation. State and IRS turnaround varies; our steps run in parallel where possible to compress the timeline.
Intake + scope
You tell us what you need through a short intake form (or a call for complex matters). We confirm scope, surface any gating issues (deadlines, missing documents, entity status), and quote any state fees that pass through at cost.
Prepare + verify
Our specialists draft the filing, verify entity details against state databases, run internal QA, and route any items needing your sign-off. You see drafts before anything gets submitted.
File with the authority
We submit directly to the state Secretary of State, FinCEN, IRS, USPTO, or whichever authority your filing requires. We pay state fees at cost and track the submission identifier in your account.
Confirmation + vault
Stamped certificate, IRS notice, or filing receipt arrives in your SOC 2 encrypted document vault the moment we receive it. Next filing deadline auto-added to your compliance calendar where applicable.
Built on the same infrastructure used by 220,000+ businesses.
SOC 2 Type II audited
Independent annual security audit covering access control, change management, incident response, and data handling. Current report on request.
All 51 US jurisdictions
Every state plus DC plus Puerto Rico - direct filings, not third-party reseller. We hold registered-agent qualifications in every state we operate.
Deadline guarantee
If we miss a filing deadline on a service you pay us to manage, we pay the state penalty. Specific to each plan and the filings it includes.
4.9 from 8,200+ verified reviews
Independently verified by Trustpilot + Google + our own NPS infrastructure. Customer success team within reach by email, chat, or phone.
60-day money-back promise
Change your mind in the first 60 days and we refund our service fee in full. State filing fees pass through at cost and are non-refundable once paid to the state.
E&O insured
Errors and omissions coverage protects you from service errors. Carrier and certificate available on request for enterprise clients.