What Is an EIN Number? Plain-English Answer
An EIN is a 9-digit federal tax ID that the IRS issues to businesses in XX-XXXXXXX form. The IRS issues 1 EIN per entity for $0 and never asks the applicant to renew.
File Form SS-4 online in 15 minutes with an SSN, or by fax to 855-215-1627 in 4 to 7 business days without one. einnumber.co Standard runs $67; Fast runs $97.
What is an EIN number, in plain English?
A 9-digit federal tax ID the IRS issues to businesses in XX-XXXXXXX form. Like a Social Security Number for a company. The IRS issues 1 EIN per entity under 26 U.S.C. § 6109 for $0. Application: Form SS-4. Turnaround: 15 minutes online or 4 to 7 business days by fax.
What does EIN stand for?
Employer Identification Number. The IRS coined the term in 1974. "Employer" is a legacy label; non-employer entities (single-member LLCs, holding companies, trusts, estates) also get EINs. Alternate names: Federal Tax ID, FEIN, Tax ID Number. 4 names, 1 underlying 9-digit number.
The "F" in FEIN only marks the number as federal, to separate it from a state employer number. For the terminology in full, see FEIN vs EIN.
Who needs an EIN?
LLCs, C-corps, S-corps, partnerships, trusts, estates, nonprofits, and payroll-running sole proprietors need 1 in 100 percent of cases. Non-US founders always need one because SSN is unavailable. 4 events trigger a mandatory EIN: hiring 1 employee, forming an LLC, forming a corp, opening a Solo 401(k).
Read the full decision path at do I need an EIN, or the LLC-specific rules at EIN for LLC.
What does an EIN cost?
$0 at the IRS through all 4 filing routes. Form SS-4 downloads free. einnumber.co Standard $67 within 5 business days; Fast $97 within 24 hours with the IRS call. Competitor comparison: Rocket Lawyer $59.99, ZenBusiness $99, Northwest $200.
How long does it take to get an EIN?
15 minutes online with an SSN or ITIN. 4 to 7 business days by fax without an SSN. 6 to 11 weeks by mail. 1 call for international applicants via 267-941-1099. einnumber.co Standard 12 to 14 business days; Fast 6 to 8 business days.
| Route | Time | Requirement |
|---|---|---|
| Online | 15 minutes | SSN or ITIN |
| Fax to 855-215-1627 | 4-7 business days | Fax service |
| Mail to Cincinnati | 6-11 weeks | Postage |
| Phone 267-941-1099 | 1 call | International only |
What can you do with an EIN?
8 core use cases: open a business bank account, run payroll, file corporate tax returns, issue 1099s to vendors, apply for state business licenses, register for state sales tax, sign W-9s in place of SSN, and open a Solo 401(k). 100 percent of LLCs and corps require an EIN for banking.
What are the EIN reference numbers to know?
Reference facts: 60 valid IRS EIN prefixes, 13 unassigned, 9-digit XX-XXXXXXX format, 21 percent corporate tax rate, 15.3 percent self-employment tax, $600 vendor 1099 threshold, 24 percent backup withholding, 75-day S-corp election window, 60-month entity classification lock.
| Item | Value |
|---|---|
| EIN digits | 9 |
| Format | XX-XXXXXXX |
| Valid prefixes | 60 |
| Unassigned prefixes | 13 |
| IRS statute | 26 U.S.C. § 6109 |
| Corporate tax rate | 21 percent |
| Self-employment tax | 15.3 percent |
| Social Security portion | 12.4 percent |
| Medicare portion | 2.9 percent |
| Backup withholding | 24 percent |
| S-corp election window | 75 days |
| Classification lock | 60 months |
What else do people ask about the EIN number?
10 more questions. The IRS charges $0. Form SS-4 is the 1 application. Online takes 15 minutes with an SSN; fax takes 4 to 7 business days without one. The CP-575 confirmation letter arrives with the 9-digit EIN and legal name.
What is an EIN number?
An EIN is a 9-digit federal tax ID that the IRS issues to businesses under 26 U.S.C. § 6109. Format: XX-XXXXXXX. The IRS uses it to identify entities on tax returns, payroll filings, and information reports. 1 EIN per entity, for life. Cost at the IRS: $0. Application form: SS-4. Turnaround: 15 minutes online or 4 to 7 business days by fax.
What does EIN stand for?
Employer Identification Number. The IRS coined the term in 1974 when it centralized entity taxpayer IDs. "Employer" is a legacy label; non-employer entities (single-member LLCs, holding companies, trusts, estates) also get EINs. Alternate names: Federal Tax ID, Federal Employer Identification Number (FEIN), Tax ID Number (TIN). 4 names, 1 number.
Who needs an EIN?
LLCs, C-corps, S-corps, partnerships, trusts, estates, nonprofits, and payroll-running sole proprietors need 1 in 100 percent of cases. Sole proprietors with 0 employees may use SSN alone. 4 events trigger a mandatory EIN: hiring 1 employee, forming an LLC, forming a corporation, or opening a Solo 401(k). Non-US founders always need one.
How does an EIN differ from an SSN?
EIN identifies entities in XX-XXXXXXX form (2-7 with 1 hyphen). SSN identifies individuals in XXX-XX-XXXX form (3-2-4 with 2 hyphens). Both are 9 digits. IRS issues EIN; SSA issues SSN. Entities file Form SS-4 for EIN; individuals file Form SS-5 for SSN. Sole proprietors sometimes use SSN on Schedule C in place of EIN.
What is the cost of an EIN number?
The IRS charges $0 for an EIN through all 4 filing routes: online, fax, mail, phone. Form SS-4 downloads free. Third-party filers charge for preparation: einnumber.co 67 Standard within 5 business days, or 97 Fast within 24 hours with the IRS call included. Competitor comparison: Rocket Lawyer $59.99, ZenBusiness $99, Northwest $200.
How long does it take to get an EIN?
15 minutes online with an SSN or ITIN via the IRS assistant. 4 to 7 business days by fax to 855-215-1627 without an SSN. 6 to 11 weeks by mail to Cincinnati OH 45999. 1 call for international applicants at 267-941-1099. einnumber.co delivers Standard in 12 to 14 business days or Fast in 6 to 8 business days.
Do non-US founders need an SSN to get an EIN?
No. Line 7b of Form SS-4 accepts the word Foreign when the responsible party holds no SSN and no ITIN. The IRS returns the EIN by fax within 4 to 7 business days at $0. Fax to 855-215-1627. The online IRS assistant blocks non-SSN applicants at line 7b in 100 percent of cases; fax is the standard route.
Does an EIN expire?
No. An EIN lasts the life of the entity. Year 2 costs $0. Year 20 costs $0. The IRS issues 1 EIN per entity and reassigns 0 retired EINs to other entities. Any renewal invoice claiming an EIN expires comes from a third party, not the IRS. The IRS charges $0 in every year.
What confirms the EIN after issuance?
The CP-575 confirmation letter. The IRS issues 1 CP-575 per EIN and prints the 9-digit EIN in bold, the legal name from line 1 of Form SS-4, and the issue date. Online applications produce the CP-575 as a PDF at the end of the 15-minute session. Fax and mail applications return the CP-575 by fax or return mail.
What can I do with an EIN?
Open a business bank account (100 percent of LLCs and corps require it), run payroll (Form 941, 940, W-2, W-3), file corporate tax returns (Form 1120, 1120-S, 1065), issue 1099s to vendors, apply for state business licenses, register for state sales tax, and sign W-9s in place of SSN. 8 core use cases.