A federal tax ID number usually means the Employer Identification Number, or EIN, that the IRS assigns to a business. This guide explains who needs one, how to apply for free, what information to prepare, and how to recover an existing number.
Key Takeaways
- A federal tax ID number for a business is generally its nine-digit EIN.
- An EIN is one type of taxpayer identification number, or TIN. It is not the same as every TIN.
- Corporations, partnerships, employers, and businesses with certain federal tax obligations generally need an EIN.
- You can apply directly through the IRS without paying an application fee.
- The responsible party should gather the entity's legal, ownership, tax, and operating information before applying.
- An EIN is separate from state tax accounts, permits, and employer registrations.
What Is a Federal Tax ID Number?
A federal tax ID number is an identifier used to administer federal tax laws. For a business, the phrase usually refers to an EIN, a unique nine-digit number issued by the IRS. You may also see it called a federal identification number, federal tax number, Federal Employer Identification Number, or FEIN.
The terminology can cause confusion because TIN is a broader category. An EIN is a TIN used to identify a business or another entity. An SSN is also a TIN, but it identifies an individual. Other federal TINs include the Individual Taxpayer Identification Number, or ITIN. The IRS provides additional definitions in its taxpayer identification number guidance.
| Identifier | Who Uses It | Primary Purpose |
|---|---|---|
| Federal tax ID | Usually a business or other entity | Common name for an EIN when referring to a business |
| EIN | Businesses, employers, and certain other entities | Federal tax reporting and entity identification |
| TIN | Individuals and entities | Umbrella term that includes EINs, SSNs, ITINs, and other tax identifiers |
| SSN | Individuals | Social Security administration and individual tax identification |
| State tax ID | Businesses registered for particular state taxes | State tax, sales tax, withholding, or other state-specific accounts |
The right identifier depends on the transaction and the taxpayer. If a form requests a company number without explaining which one, confirm whether it wants an EIN, state registration number, or another identifier. This overview of company identification numbers can help you distinguish them.
Do You Need a Federal Tax ID Number?
You generally need an EIN if you have employees or operate as a corporation or partnership. The IRS also requires an EIN when a business files employment, excise, or alcohol, tobacco, and firearms tax returns. Other triggering situations include withholding tax on certain income paid to a nonresident alien, maintaining a Keogh plan, or operating certain trusts, estates, nonprofit organizations, farmers' cooperatives, or plan administration activities.
Use this decision path to evaluate your business:
- Do you have employees? If yes, you generally need an EIN to report employment taxes and wages.
- Is the business a corporation or partnership? If yes, obtain an EIN even if the business has no employees.
- Does the business have a listed federal tax or organizational obligation? Review the IRS criteria for excise returns, withholding, retirement plans, trusts, estates, nonprofits, and similar entities.
- Are you a sole proprietor with none of those obligations? You may be able to use your SSN for federal income tax purposes, although you may still request an EIN.
- Do you own an LLC? Look at the LLC's federal tax classification, number of owners, employees, and excise tax responsibilities.
You do not need an LLC to get a tax ID. A sole proprietor can request an EIN, and corporations and partnerships need EINs regardless of whether an LLC exists. A single-member LLC without employees or excise tax obligations may not need a separate EIN for federal income tax purposes if it is disregarded as separate from its owner. Different rules may apply for employment and excise taxes. For an entity-specific explanation, review how to obtain a federal tax ID number for an LLC.
How to Get a Tax ID Number From the IRS
Apply directly to the IRS when you need to get a tax ID number for your business. The official EIN application is free. A paid third-party filing service is optional and is not required to receive an EIN.
Before beginning a federal tax ID application, form the legal entity first if you are creating a corporation, partnership, or LLC. This helps ensure that the legal name and formation details on the EIN application match the entity's records. Then follow these steps:
- Confirm that the business needs an EIN or has a practical reason to request one.
- Identify the individual who qualifies as the responsible party.
- Gather the business, ownership, and tax information requested on the application.
- Select the IRS application method available for your location and circumstances.
- Review every entry, particularly the legal name, entity type, and responsible-party information.
- Submit the application and retain the EIN assignment notice with the business's permanent records.
Eligible domestic applicants can use the IRS online EIN application. The principal business, office, or agency must be located in the United States or a U.S. territory, and the applicant must satisfy the IRS identification requirements. The application must be completed in one session, so preparation prevents timeouts and inconsistent entries. Consult the IRS page on getting an Employer Identification Number for current eligibility rules and filing options.
Do not apply repeatedly because an expected confirmation has not arrived. First check whether the IRS already assigned an EIN, then follow the agency's current instructions for resolving the application.
Information Required for a Federal Tax ID Application
Gather the required information before you apply for a federal tax ID. Your answers tell the IRS which legal entity is applying, who controls it, why it needs an EIN, and which federal tax obligations may apply.
Prepare the following details:
- The entity's complete legal name and any trade name it uses.
- The mailing address and physical street address.
- The entity type, such as sole proprietorship, partnership, corporation, LLC, trust, estate, or nonprofit.
- The date the business started or the entity was acquired.
- The reason for applying, such as starting a business, hiring employees, changing the organization's form, or establishing a retirement plan.
- The principal business activity and a description of the products sold or services provided.
- The closing month of the accounting year.
- Expected employee information and answers concerning employment taxes, if applicable.
- Information about any earlier EIN application for the same applicant or entity.
You must also identify the responsible party. This is generally the individual who ultimately owns or controls the entity or exercises effective control over it. For most small businesses, that person is an owner, general partner, grantor, or principal officer. Except for government entities, the responsible party generally must be an individual rather than another business. A nominee who has temporary or limited authority should not be listed as the responsible party.
If someone else prepares or submits the application, confirm what authorization the IRS requires for a third-party designee. Delegating the paperwork does not change who actually owns or controls the business, and it does not make the paid service the responsible party.
Federal Tax ID Application Methods and Timing
The available application method depends partly on where the principal business is located. Follow the IRS's current instructions because filing addresses, fax numbers, telephone procedures, and service availability can change.
| Method | Who Generally Uses It | How the EIN Is Delivered |
|---|---|---|
| Online | Eligible applicants whose principal business is in the United States or a U.S. territory | The EIN is generally issued after the completed application is validated |
| Fax | Domestic or international applicants using the appropriate Form SS-4 instructions | Returned by fax if the applicant provides a return fax number |
| Domestic or international applicants who submit Form SS-4 | Sent through the mail after processing | |
| Telephone | Certain international applicants | Provided after an authorized caller supplies and verifies the required information |
Online filing is usually the most direct option for an eligible domestic applicant. The application cannot be saved for completion later, and inactivity can end the session. Have all answers ready before starting. The IRS generally limits EIN issuance to one EIN per responsible party per day, so plan additional time if a transaction involves several new entities.
Fax and mail applicants use Form SS-4 and must select the destination listed in the current instructions. International applicants should check the current IRS procedures for telephone, fax, or mail applications. Do not rely on an old mailing address, fax number, phone number, or processing estimate copied from a previous filing. Delays can also occur when the entity name, responsible party, or business classification does not match the underlying records.
Where to Find an Existing EIN
If the IRS already assigned your business an EIN, recover that number instead of submitting a new application. Start with records created when the business opened or completed earlier tax, banking, licensing, and payroll transactions.
Look for the EIN in these places:
- The EIN assignment notice or other IRS correspondence.
- Previously filed federal business tax returns.
- Payroll reports and employment tax records.
- Business bank account or credit applications.
- State or local license applications that requested the EIN.
- Documents retained by the accountant, payroll provider, or authorized business representative.
If those records are unavailable, an authorized person can contact the IRS and request assistance. The IRS will verify that person's identity and authority before disclosing the number. Keep the recovered number in a secure permanent file, and limit access to people who need it for legitimate business purposes.
Finding another company's EIN is different from recovering your own. There is no general public IRS database containing every private business's EIN. Public company filings, nonprofit records, tax forms received from the company, or a direct request to an authorized company representative may provide the number in limited situations. For a focused explanation of public records and verification limits, see this federal tax ID number lookup guide.
When Business Changes Require a New EIN
A business may need a new EIN when its ownership or legal structure changes, but not every operational change triggers a new number. The result depends on the current entity type and the legal effect of the transaction.
A sole proprietor may need a new EIN after incorporating, creating a partnership, buying or inheriting an existing business that will operate as a sole proprietorship, or entering certain bankruptcy proceedings. A partnership may need one when it incorporates, ends and a new partnership begins, or one partner takes over and operates as a sole proprietor. A corporation may need a new EIN when it receives a new charter, becomes a subsidiary rather than a division, or changes into another entity type. LLC results depend on ownership and federal tax classification.
A simple business name change, address change, additional location, or new line of activity under the same entity generally does not by itself require a new EIN. The business may still need to notify the IRS or other agencies of the change. Never use a new EIN as a substitute for properly documenting a merger, conversion, ownership transfer, or dissolution.
If ownership is unclear, a restructuring may require a new EIN, or the proposed responsible party does not match the entity's control arrangement, you can post your legal need on UpCounsel's marketplace. An attorney can review governing and transaction documents, identify the proper responsible party, and determine which legal or registration changes should accompany the EIN filing. Responses typically arrive within a day.
An EIN remains permanently associated with the entity to which it was assigned. The IRS does not cancel it or reassign it to another business. After a business closes, an authorized person can ask the IRS to close the related business tax account once required returns have been filed and taxes have been addressed.
Federal EINs vs. State Tax ID Requirements
An EIN does not automatically complete your state tax registrations. Federal and state agencies issue different accounts for different purposes, and a business may need both.
Depending on where and how you operate, state registration may be required for:
- Employee withholding and unemployment insurance.
- Sales and use tax collection.
- State excise taxes.
- Corporate income, franchise, or other business taxes.
- Industry-specific licenses or permits.
A state may call its identifier a tax ID, withholding number, sales tax account number, employer account number, or another name. Do not assume that every number appearing on a state document is the federal EIN. You may also need separate accounts in more than one state if your employees, property, sales, or other activities create registration obligations there.
Apply for the EIN first when a state application requests it, but do not delay checking state requirements until the business begins making sales or running payroll. Registration timing, agencies, forms, and thresholds vary. Use the official tax, labor, and business registration instructions for each relevant state. Businesses operating in Georgia, for example, can review this guide to obtaining a tax ID number in Georgia, then confirm all current requirements with the appropriate state agency.
Keep federal and state notices in separate, clearly labeled records. This reduces the chance of entering a state account number where a bank, vendor, payroll company, or tax return asks for the federal EIN.
Frequently Asked Questions
Can You File Taxes With an Expired ID?
Yes, an expired driver's license or state photo ID generally does not eliminate your federal tax filing obligation. However, tax software, a preparer, or an identity verification process may require current information. An EIN does not expire, while an ITIN can expire under IRS rules. Check the instructions for the specific identifier and filing method involved.
Are EIN Numbers Free?
Yes, the IRS issues EINs without charging an application fee. A private company may charge for preparing or submitting an application, but that payment is for the company's service, not for the EIN itself. Confirm that any paid provider explains its role, fee, authorization requirements, and refund policy before sharing sensitive information.
Do I Need a Federal Tax ID?
You need a federal tax ID if an IRS rule or the tax treatment of your entity requires an EIN. Even when federal rules do not require one, a bank, payer, licensing agency, or contracting partner may request it for a legitimate transaction. Ask what identifier is required before disclosing an SSN or applying for another number.
Can I Get an EIN Without an LLC?
Yes, you can get an EIN without forming an LLC. Sole proprietors, corporations, partnerships, trusts, estates, nonprofit organizations, and other eligible applicants can receive EINs. An EIN identifies the taxpayer or entity for federal purposes, but receiving one does not create a legal entity, provide liability protection, or satisfy state formation requirements.
Is My Federal Tax ID the Same as My EIN?
It is usually the same when someone uses "federal tax ID" to describe a business's identification number. Context still matters because federal tax identification numbers also include identifiers used by individuals. Review the form or request to determine whether it specifically asks for an EIN, SSN, ITIN, or another type of TIN.
Is My Tax ID My SSN?
Your tax ID may be your SSN if you are filing as an individual or operating an eligible sole proprietorship under your personal taxpayer number. A separate business may instead use an EIN. Because "tax ID" is not always specific, confirm which taxpayer and identifier the requesting party means before providing sensitive personal information.
