If you want to invoice, open a bank account, or hire someone in the United States, sooner or later you'll wonder how to get an EIN . The good news: it's the easiest and cheapest step in the entire formalization process—it's free, and if you qualify to do it online, it takes about 10 minutes. In this article, we explain who needs one, how to apply step by step using form SS-4, the difference between ITIN, EIN, and SSN, and the most common mistakes we see in the community.
What is the EIN and who needs it?
The EIN (Employer Identification Number) is your business's tax identification number with the IRS—the "Social Security number for businesses." You need it if you have an LLC or corporation, if you hire employees, if you open a business bank account, or if you want to build business credit. Even as a sole proprietor, it's a good idea to have one so you don't have to give your personal number to clients and platforms. If you haven't started your business yet, first look into how to open an LLC : the correct order is business first, then EIN.
How to get a free EIN step by step
Online option (the fast one). If you (the responsible party) have a Social Security number or ITIN, access the EIN wizard at IRS.gov during business hours (Monday through Friday). Answer the business questions—entity type, status, activity—and the IRS will instantly provide you with the EIN along with a downloadable confirmation letter (CP 575). Keep it safe: banks require it.
Fax or mail option (without SSN or ITIN). Fill out form SS-4 and on line 7b, where they ask for the responsible party's number, foreign applicants without an SSN/ITIN can leave it according to the instructions on the form itself. The EIN arrives in about 4 business days by fax; by mail, in 4 to 5 weeks.
Telephone option (from outside the USA). If you do not have a residence or office in the country, you can call the IRS at 267-941-1099 (not toll-free), from 6:00 am to 11:00 pm Eastern Time, Monday through Friday.
ITIN vs EIN vs SSN: which is which
The Social Security Number (SSN) is personal, for those with work authorization. The Individual Taxpayer Identification Number (ITIN) is also personal, but for those who file taxes without qualifying for an SSN. The Enterprise Tax Identification Number (EIN) belongs to the company, not you. The typical combination for a newly arrived Hispanic entrepreneur is: an ITIN for their personal taxes and an EIN for their LLC. With these two numbers, you can operate legally and even access financing, as we explain in our article on business loans with ITINs.
Common mistakes when obtaining an EIN
Paying for something that's free. There are websites that charge $100–$300 to "manage" your EIN, mimicking the IRS. The direct process is always free.
Apply for an EIN before creating the LLC. If you get an EIN as an individual and then form the LLC, you'll need to apply for another one. First, the state approves your business, then the IRS.
Losing your CP 575 letter. The IRS doesn't replace it (they issue a 147C letter that you must request by phone). Download and back it up the same day.
Inconsistent data. The name and address must exactly match the Articles of Organization; a different letter will result in bank rejections.
Frequently Asked Questions about the EIN
How much does it cost to obtain an EIN?
Nothing: it's free directly from the IRS. Be wary of any fees charged for the process itself.
Can I get an EIN without a Social Security number?
Yes, with ITIN online, or without ITIN via SS-4 by fax/mail or by phone from abroad.
How long it takes?
Online is immediate; fax ~4 business days; mail 4–5 weeks.
Does the EIN expire or does it need to be renewed?
It doesn't expire or get renewed. It belongs to your company forever, even if you change banks or move to another state.
Conclusion
Obtaining an EIN is free, fast, and doesn't require a lawyer: company first, form later, confirmation letter saved. It's the link that connects your LLC to the bank, taxes, and business credit. The complete step-by-step process is in our guide to starting a business in the USA.
Do you prefer to delegate the entire process? At FormaTuEmpresa.com we create your LLC with the EIN included, in any state and in Spanish.
