How Do You Apply for an EIN in the U.S.? — Free IRS Guide & Common Mistakes (Updated: Jan 2026)
“I’m starting a business in the U.S. — how do I get an EIN, and can I do it for free?”
If you’re forming an LLC, launching a small corporation, hiring help, or opening a business bank account, you’ll run into EIN right away.
The good news: the EIN is issued by the IRS for free.
The not-so-fun part: EIN data becomes the “official identity” tied to banks, payroll, and filings — so a small name or Responsible Party mistake can create weeks of cleanup later.
- 1️⃣ What an EIN is (and the 2025–2026 rules that matter)
- 2️⃣ Who actually needs an EIN (vs who can use SSN)
- 3️⃣ How to apply: online vs SS-4 (and online hours)
- 4️⃣ Common mistakes: Responsible Party + business name mismatch
- 5️⃣ BOI reporting note (FinCEN) — don’t miss what applies to you
- 6️⃣ Related links
- 7️⃣ FAQ
1️⃣ What an EIN is (and the 2025–2026 rules that matter)
An EIN (Employer Identification Number) is the IRS-issued ID number used to identify a business for tax and reporting purposes.
It’s often required for banking, payroll, business filings, and certain retirement plan setups.
In practice, treat it like a business SSN: once issued, it becomes a long-term reference used by banks, platforms, and the IRS.
Most EIN problems aren’t about “getting the number.” They’re about the exact data attached to the number—especially the Responsible Party and legal name fields.
Getting it right upfront saves real time (and real stress) later.
2️⃣ Who actually needs an EIN (vs who can use SSN)
- Usually needs an EIN: LLCs, corporations, partnerships; anyone with employees; many businesses opening a business bank account; businesses issuing Forms 1099; many payroll and payment providers.
- May not need an EIN: a true solo freelancer with no employees and no contractors, operating under a personal name and using only an SSN (some platforms still request EIN anyway).
Even when the law doesn’t strictly require an EIN, banks and platforms often do.
So the practical question becomes: “Will anyone I work with require it?”—not just “Is it legally mandatory?”
3️⃣ How to apply: online vs SS-4 (and online hours)
- Online (IRS): Usually instant issuance (recommended)
- Fax (Form SS-4): Often 1–2 weeks
- Mail (Form SS-4): Several weeks or longer
- Outside the U.S. / no SSN/ITIN: Usually phone or paper options apply
- Availability (Eastern Time): Mon–Fri: 6:00 a.m. – 1:00 a.m. (next day)
- Saturday: 6:00 a.m. – 9:00 p.m.
- Sunday: 6:00 p.m. – 12:00 a.m.
- Daily limit: 1 EIN per Responsible Party per day
When you Google “apply for EIN,” you may see third-party sites that look official and charge fees.
EIN issuance is free when you apply directly through the IRS.
To stay safe, use the official IRS pages (look for irs.gov in the address).
4️⃣ Common mistakes: Responsible Party + business name mismatch
The two most common “this later becomes a headache” mistakes are:
(1) listing the wrong Responsible Party and
(2) entering a business name that doesn’t match what your bank or state documents show.
The IRS expects the Responsible Party to be a real person (a natural person) who controls, manages, or directs the entity and its funds.
A very common error is typing the LLC name or using a “nominee” / formation service as the Responsible Party.
That mismatch can trigger delays when banking, payroll, or IRS notices start arriving.
- Picking “Sole Proprietor” for an LLC when you should select the correct entity type
- Entering the LLC/corporation name as the Responsible Party
- Typing a personal name where the legal business name should be
- Ignoring punctuation differences (Inc., LLC, commas, periods, capitalization)
A business owner applied for an EIN in five minutes—then lost weeks later.
The EIN was issued, but the legal name on the EIN confirmation didn’t match the LLC name on the state filing (tiny punctuation differences + the wrong name field).
The bank flagged it as a mismatch and paused the business account opening.
The “fix” wasn’t a quick online edit. It required follow-up with the IRS and documentation—time the owner didn’t expect to spend during launch.
- Does your business name match your state formation documents exactly (including LLC/Inc., punctuation, spacing)?
- Is the Responsible Party a person with correct SSN/ITIN details (not the entity name)?
- Are your address details consistent with what you’ll use for banking and tax mail?
- Are you ready to download and save your EIN confirmation letter immediately?
After online issuance, save the EIN confirmation (commonly referred to as the CP 575 letter).
Practical tip: keep (1) a secure digital copy and also (2) a printed copy in a safe place.
Years later, banks and vendors may ask for documentation—and it’s much easier when you can produce it immediately.
5️⃣ BOI reporting note (FinCEN) — don’t miss what applies to you
Many business owners also hear about “BOI reporting” (Beneficial Ownership Information) under FinCEN rules.
The key point is: BOI requirements have changed over time and may depend on whether the company is domestic or foreign, plus current guidance.
So after you get your EIN and entity set up, take one minute to confirm whether BOI reporting applies to your situation.
- If you formed a U.S. LLC/corporation, you may see updates indicating certain domestic entities are exempt under current rules—verify your current status.
- If you are a foreign company registered to do business in the U.S., BOI filing timelines can be stricter and deadline-driven.
- When in doubt, use FinCEN’s official BOI page and FAQs to confirm current requirements.
6️⃣ Related links
7️⃣ FAQ
- Is applying for an EIN free?
Yes. The IRS issues EINs for free when you apply directly through IRS channels. - Can I use the EIN right away?
If you apply online and receive it immediately, you can typically use it right away for banking and forms. - Can I fix a business name mistake online?
Usually not. Name/identity corrections often require follow-up steps with the IRS, so it’s best to prevent mistakes upfront. - Why does “Responsible Party” matter so much?
Because the IRS expects a real person in control of the entity. Using the entity name or a nominee can create mismatch issues later.
This article is based on U.S. federal tax law and public agency guidance. State rules may differ.
This content is for general educational purposes and does not replace individualized professional advice.
핑백: Why Do You Need a Business Bank Account After Getting an EIN?(Updated: Jan 2026)