An EIN identifies your business to the IRS, much as a Social Security number identifies you. You generally need one to hire employees, run a partnership or corporation, or pay certain business taxes, and banks use it to open business accounts.
Getting one is free. The IRS issues EINs online at no charge and warns that you never have to pay a fee for one, so skip any site that charges for the application.
Funders use your EIN to identify the business, match state and tax records and pull business credit reports. Keep the IRS confirmation letter with your formation documents, since it can also help show when the business started.
Sources
- Employer identification number — Internal Revenue Service (checked 2026-09-30)
- Get an employer identification number — Internal Revenue Service (checked 2026-09-30)