An independent contractor can get an Employer Identification Number (EIN) for free directly from the IRS, and the fastest way is the online application at irs.gov, which issues the nine-digit number immediately once you finish the form. The process takes about 10 minutes. You don’t need an attorney, a filing service, or a fee.
Do You Actually Need an EIN
If you’re a sole proprietor with no employees, the IRS does not require you to have an EIN. Your Social Security Number works as your taxpayer identification number on every tax form and client document. The EIN becomes mandatory only when your situation crosses certain lines:
- You have employees and need to file employment tax returns.1Internal Revenue Service. About Form 941, Employer’s Quarterly Federal Tax Return
- Your business is a partnership or a multi-member LLC.2Internal Revenue Service. Instructions for Form SS-4 – Application for Employer Identification Number
- Your business is a corporation.
- You file excise tax returns.
None of that apply? The choice is yours, but most experienced contractors get one anyway. Handing your SSN to every new client is an identity-theft risk that grows with each Form W-9 you sign. An EIN on your business paperwork keeps your personal number out of client databases, vendor portals, and procurement systems. For single-member LLCs, it also reinforces the separation between you and your business entity.
What to Have Ready Before You Start
The IRS online application cannot be saved partway through. It times out after 15 minutes of inactivity, and if that happens, you start over.3Internal Revenue Service. Get an Employer Identification Number Pull everything together first:
- Your legal entity type: sole proprietorship, single-member LLC, multi-member LLC, partnership, or corporation. The application asks you to pick from a specific list.
- The responsible party’s name and taxpayer ID number (SSN or ITIN). This is the person who controls the entity’s funds and assets; for most contractors, that’s you.4Internal Revenue Service. Responsible Parties and Nominees
- Your business’s legal name and both physical and mailing addresses. IRS correspondence goes to the mailing address you provide.
- Your reason for applying, such as “Started a New Business” or “Change in organization.”
Forming a partnership means also having information about the other partners. For an LLC, know how many members it has, since that affects how the application routes you.
Applying Online at IRS.gov
The online EIN application is free and gives you the number immediately once the application is approved.3Internal Revenue Service. Get an Employer Identification Number It runs at set hours in Eastern Time:
- Monday through Friday: 6:00 a.m. to 1:00 a.m. the next day
- Saturday: 6:00 a.m. to 9:00 p.m.
- Sunday: 6:00 p.m. to midnight
You’ll confirm you are the responsible party, select your entity type, choose your reason for applying, and enter your personal and business information. Review the summary screen carefully. A wrong digit in your SSN or a misspelled business name creates problems later.
When the submission passes IRS validation, your nine-digit EIN appears on screen along with a confirmation notice, CP 575. Download or print it right then. That notice is your permanent proof of assignment, and banks and state agencies rely on it for verification. The IRS limits online applications to one EIN per responsible party per business day, so if you need EINs for multiple entities, spread the applications across days.3Internal Revenue Service. Get an Employer Identification Number
If You See Reference Number 101
The most common snag is Reference Number 101, which means the IRS already has an entity with a name identical or very similar to yours on file. That doesn’t necessarily mean someone stole your name. It often happens when a previous application was partially processed or when your entity name closely matches an existing record. Call the IRS Business and Specialty Tax Line at 800-829-4933. A representative can check the records and typically resolves the issue by having you fax your application along with your formation documents.
Other Ways to Apply
Online is the fastest route, but it isn’t available to everyone. If your principal place of business is outside the United States and U.S. territories, you cannot use the online tool.5Internal Revenue Service. Instructions for Form SS-4 (12/2025)
By Phone for International Applicants
If you have no legal residence or principal place of business in the U.S. or its territories, call 267-941-1099 (not toll-free) between 6:00 a.m. and 11:00 p.m. Eastern Time, Monday through Friday. Have a completed Form SS-4 in front of you. The representative walks through it with you and assigns the EIN during the call. Domestic applicants cannot use this line.5Internal Revenue Service. Instructions for Form SS-4 (12/2025)
By Fax or Mail
Domestic applicants who can’t use the online system can fax a completed Form SS-4 to 855-641-6935. The IRS typically faxes the EIN back within about four business days.6Internal Revenue Service. Employer Identification Number Mailing Form SS-4 to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999 is the slowest option, running roughly four to five weeks.
Don’t Pay for Something That’s Free
The IRS never charges a fee for an EIN, whether you apply online, by fax, or by mail.3Internal Revenue Service. Get an Employer Identification Number Third-party websites designed to look like government portals charge up to $300 to file the same free application on your behalf.7Federal Trade Commission. FTC Warns Operators of Websites That Charge for an Employer Identification Number and Claim Affiliation With the IRS They often appear near the top of search results with names and designs that suggest government affiliation. Apply only at a URL ending in .gov. The official application lives at irs.gov.
Putting the EIN to Work
Once you have your EIN, it replaces your SSN on most business paperwork. The most immediate use is Form W-9, which clients require before they pay you. On the W-9, your EIN goes in Part I under “Employer identification number,” a separate field from lines 1 and 2. Line 1 is for your name (or the owner’s name for a disregarded entity), and line 2 is for your business or disregarded entity name if it differs.8Internal Revenue Service. Form W-9 (Rev. March 2024) Entering your EIN in Part I instead of your SSN keeps your personal number out of every client’s accounting system.
Your EIN is also what you’ll need to open a dedicated business bank account. Most banks ask for the CP 575 confirmation letter to verify the number and open the account in your business’s legal name. If you’ve misplaced the CP 575, you can request a replacement called Letter 147C by calling the IRS Business and Specialty Tax Line at 800-829-4933.6Internal Revenue Service. Employer Identification Number
At tax time, sole proprietors report business income on Schedule C attached to Form 1040, and the EIN goes in the field labeled “Employer ID number (EIN)” near the top of the schedule.9Internal Revenue Service. Schedule C (Form 1040) – Profit or Loss From Business
Keeping Your EIN Records Current
Getting the EIN is the easy part. Keeping the IRS informed when things change is where contractors slip up. If your responsible party changes, say you bring on a partner who takes over financial control, or your LLC changes its managing member, you’re required to file Form 8822-B within 60 days.10Internal Revenue Service. Form 8822-B, Change of Address or Responsible Party – Business Missing that deadline doesn’t trigger an immediate penalty in most cases, but it can create problems when you later try to make changes and the IRS has outdated information about who’s authorized to act on the entity’s behalf.
The same form handles business address changes. If your mailing address shifts, file Form 8822-B so IRS correspondence reaches you. Tax notices sent to an old address don’t stop deadlines from running.
If you lose your EIN entirely, with no CP 575 and no old tax returns to check, call the IRS Business and Specialty Tax Line at 800-829-4933, Monday through Friday, 7:00 a.m. to 7:00 p.m. local time. After verifying your identity, a representative can give you the number over the phone or mail Letter 147C as written confirmation.6Internal Revenue Service. Employer Identification Number
One thing to know if your business grows or restructures: incorporating, forming a partnership, or filing bankruptcy requires a new EIN. Simply changing your business name, opening a second location, or running multiple businesses under the same structure does not.11Internal Revenue Service. When to Get a New EIN Applying for a new EIN you don’t actually need creates duplicate records at the IRS that can cause confusion on future filings.