How to get an EIN (and how W-9s work)
An Employer Identification Number is your business's federal tax ID. Here's what it is, how to get one free directly from the IRS, when you need one, and how W-9s fit in when you hire contractors.
What is an EIN?
An Employer Identification Number (EIN), also called a Federal Tax Identification Number, is a nine-digit number the IRS assigns to identify a business entity. You use it to file taxes, open a business bank account, hire employees, and apply for business licenses. Think of it as a Social Security Number for your company.
How to get an EIN — free, directly from the IRS
The only official place to get an EIN is the IRS, and it is completely free. The fastest route is the IRS online application (available to businesses whose principal is in the US), which issues your EIN immediately upon completion. You can also apply by fax or mail with Form SS-4. Be wary of third-party sites that charge a fee — they are not the IRS and you never need to pay for an EIN.
EIN vs SSN — which should you use?
A single-member LLC or sole proprietor with no employees can often use their Social Security Number, but getting an EIN is still smart: it keeps your SSN off contracts and W-9s, reduces identity-theft exposure, and is required the moment you hire employees, form a multi-member LLC, or elect corporate taxation. Most banks also require an EIN to open a business account.
The W-9: collecting a contractor's tax info
When your business pays an independent contractor $600 or more in a year, you generally must report it on a Form 1099-NEC — and to do that you need the contractor's taxpayer information. You collect it with IRS Form W-9, which the contractor fills in with their name, business name, tax classification, and TIN (SSN or EIN). Collect a signed W-9 before you make the first payment so you are not chasing it at tax time.
Hiring contractors the right way
A clean contractor relationship pairs a signed W-9 with a written independent contractor agreement that sets out scope, payment, IP ownership, and confirms 1099 status. Certyneo lets you send both for legally binding electronic signature and keep them with a court-admissible audit trail — so your paperwork is airtight before work begins.
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Frequently asked questions
How much does an EIN cost?
Nothing. The IRS issues EINs free of charge. Any site charging a fee to “get your EIN” is a third-party middleman — you can apply directly with the IRS at no cost.
How long does it take to get an EIN?
The IRS online application issues your EIN immediately. Fax applications take about four business days; mail can take several weeks.
Do I need an EIN for a single-member LLC?
Not always — you can sometimes use your SSN — but it is strongly recommended. You will need an EIN to hire employees, open most business bank accounts, or elect corporate tax treatment, and it keeps your SSN private.
What is the difference between a W-9 and a 1099?
A W-9 is how you collect a contractor's tax information; a 1099-NEC is the form you file with the IRS to report what you paid them. You use the W-9 data to complete the 1099.
When do I need to collect a W-9?
Collect a W-9 from any US independent contractor or vendor you expect to pay $600 or more in a calendar year — ideally before the first payment.