Stop Paying for Your EIN
- Nathan Harding
- Jul 31
- 5 min read
How to Get Your Federal Tax ID Number for Free (Yes, Really Free)
If you're starting a business, you've probably encountered ads promising to "fast-track your EIN" or "guarantee your federal tax ID approval" for fees ranging from $50 to $300 or more. Here's what these companies don't want you to know: getting an Employer Identification Number (EIN) from the IRS is completely free, takes about 10 minutes, and you can do it yourself right now.
As someone who helps small businesses navigate the practical side of business formation, I've watched countless entrepreneurs waste money on services they don't need. Let's fix that.
What Exactly Is an EIN?
An Employer Identification Number (EIN), also called a Federal Tax Identification Number, is a unique nine-digit number the IRS assigns to identify your business for tax purposes. Think of it as your business's Social Security number.
Your EIN looks like this: 12-3456789
You need an EIN if you:
Have employees (including yourself if you elect S-Corp status)
Operate as a partnership, LLC, or corporation
Want to open a business bank account
Plan to apply for business credit
Need to file certain tax returns
You might not need an EIN if you're:
A sole proprietor with no employees who doesn't mind using your Social Security number for business purposes
Operating under your legal name (not a DBA)
Comfortable mixing personal and business finances (though I strongly advise against this)
The Free vs. Paid EIN Scam
Here's how the scam works: Third-party companies create official-looking websites, run Google ads, and charge substantial fees to "help" you get your EIN. They're essentially filling out the same free form you can complete yourself, then submitting it to the IRS on your behalf.
What you pay for with these services:
Someone else filling out a simple form
"Expedited processing" (the IRS processes all applications the same way)
"Guaranteed approval" (the IRS rarely rejects legitimate applications)
A fancy certificate (worthless – your actual EIN confirmation from the IRS is what matters)
What you get for free directly from the IRS:
The exact same EIN number
The same processing time
Official IRS confirmation
Direct communication with the federal agency that actually issues EINs
How to Get Your EIN for Free: Step-by-Step
Option 1: Online Application (Fastest)
The quickest way is through the IRS website. Here's exactly what to do:
Go to IRS.gov – Make sure you're on the actual IRS website, not a paid service that looks official
Search for "Apply for EIN" or go directly to the EIN application page
Click "Apply for an EIN Online"
Complete Form SS-4 – This takes about 10 minutes and asks for basic business information
Submit and receive your EIN immediately – You'll get your number instantly upon completion
Important: The IRS online system is only available Monday through Friday, 7 AM to 10 PM Eastern Time.
Option 2: By Fax (24/7 Availability)
If you need to apply outside business hours:
Download Form SS-4 from IRS.gov
Complete the form – Use the same information you'd enter online
Fax to 855-641-6935 (international applicants use different numbers)
Receive your EIN within 4 business days
Option 3: By Mail (Slowest)
Complete Form SS-4
Mail to the address listed in the form instructions (varies by state)
Wait 4-5 weeks for processing
Option 4: By Phone (For International Applicants)
If you don't have a U.S. address or Social Security number, you can call 267-941-1099 (not toll-free) between 6 AM and 11 PM Eastern Time.
What Information You'll Need
Before starting your application, gather this information:
Business Information:
Legal business name
Business address (can be your home address)
Type of entity (LLC, Corporation, Partnership, etc.)
State where business is located
Reason for applying (opening bank account, hiring employees, etc.)
Personal Information:
Your name and Social Security number (as the responsible party)
Your address and phone number
Business Details:
Expected number of employees in the next 12 months
Principal business activity
Date business started or will start
Red Flags: How to Spot EIN Scams
Warning signs you're on a scam site:
Fees for "expedited processing" or "guaranteed approval"
Urgent language like "limited time offer" or "act now"
Requests for payment before showing you the actual form
Claims about "exclusive access" to IRS services
Websites that look official but aren't IRS.gov
Remember: The IRS does not charge for EIN applications. Ever.
Why You Need an EIN for Your Business Bank Account
Once you have your EIN, your next step should be opening a dedicated business bank account. Here's why this matters:
Legal Protection: Mixing personal and business finances can compromise your LLC's limited liability protection or corporation's legal protections.
Tax Simplification: Separate accounts make bookkeeping and tax preparation much cleaner and less expensive.
Professional Credibility: Business accounts help establish your business as a legitimate entity with vendors, customers, and lenders.
Banking Requirements: Most banks require an EIN to open business accounts, and many won't let you use your Social Security number for business banking anyway.
The bank will ask for your EIN confirmation letter from the IRS when you open the account, so make sure to save that document.
Common EIN Mistakes to Avoid
Using the wrong entity type: Make sure you select the correct business structure on your application. If you're not sure, figure this out before applying.
Inconsistent names: Use the exact legal name of your business as registered with your state. Don't use abbreviations or nicknames.
Wrong responsible party: This should be the person who controls the business and has legal authority to make decisions.
Multiple applications: Don't apply multiple times if you don't hear back immediately. The IRS will reject duplicate applications.
What Happens After You Get Your EIN
Once you receive your EIN:
Save your confirmation letter – You'll need this for banking, credit applications, and tax filings
Open your business bank account – Use your EIN and confirmation letter
Update your business records – Add your EIN to contracts, invoices, and other business documents
Set up business credit – Your EIN helps establish business credit separate from your personal credit
The Bottom Line
Getting an EIN is free, fast, and straightforward when you go directly through the IRS. There's absolutely no reason to pay a third party to do something you can complete yourself in minutes.
The money you save by avoiding EIN scams can go toward things that actually help your business grow – like proper legal structure, business insurance, or marketing. Those investments provide real value, unlike paying someone to fill out a free government form.
Your business deserves every dollar working toward its success, not lining the pockets of companies charging for free government services.
Need help determining the right business structure for your EIN application, or want guidance on setting up your business banking and financial systems? At Somnium Advisory, we help small businesses make smart decisions that save money and prevent problems down the road. Because every dollar you save on unnecessary services is a dollar you can invest in growing your business.
