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Do you need an EIN?

Pick your business type below. We will tell you whether the IRS requires you to have an EIN, why it might be a smart idea anyway, and what to do next.

By Reba Donaldson · Last reviewed: April 2026

Before you pick

An EIN is a free, nine-digit ID issued by the IRS to identify a business. Some business types are required to have one. Others are not, but get one anyway because it is free, takes 15 minutes, and solves real problems (privacy, banking, hiring).

Below, click whichever pill matches your situation. If your situation matches more than one (for example, you are a sole proprietor who is also hiring an employee), the requirement always wins. Required beats optional.

Sole Proprietor

You file taxes as yourself. No LLC, no corporation, just you and Schedule C.

Verdict: optional, but strongly recommended. The IRS does not require you to have an EIN as a sole proprietor unless you hire employees or open certain retirement plans. But you should get one anyway, for two reasons.
Why you should get one
Privacy
Without an EIN, every client you work with gets your Social Security Number on a W-9. With an EIN, they get the EIN instead.
Banking
Most banks now require an EIN to open a separate business checking account, even for sole proprietors. You want a separate account to keep clean books.
Cost
Free. The application takes about 15 minutes online.
One thing to know: on the IRS application, when it asks "What type of legal structure?" you will pick "Sole Proprietor." That is it. No paperwork to file later, no annual return for the EIN itself.
Walk me through the application →

Single-Member LLC

You formed an LLC, but you are the only owner and you have not elected to be taxed as a corporation. The IRS calls this a "disregarded entity," meaning your LLC and you are treated as the same taxpayer.

Verdict: optional, but strongly recommended. Like a sole proprietor, you can technically use your SSN. You should not.
Why a single-member LLC almost always wants an EIN
Banking
Almost every bank requires an EIN to open a business account in the LLC's name.
Privacy
Same logic as a sole proprietor. Clients see the EIN, not your SSN.
Hiring
If you ever hire even one part-time employee, you will need an EIN. Better to have it now.
Selling the business
An EIN ties to the LLC. If you ever sell or restructure, the EIN simplifies the transition.
Sole-proprietor trap: when applying, choose "LLC" as your structure. Do NOT choose "Sole Proprietor" just because you are the only owner. The IRS will issue the EIN to the LLC entity.
Full LLC walkthrough →

Multi-Member LLC

Two or more owners in the LLC.

Verdict: required. A multi-member LLC must get an EIN. By default, the IRS taxes you as a partnership, which always requires an EIN.
What you need before applying
Legal name
The LLC name exactly as it appears on your articles of organization.
State formed
The state where the LLC was filed.
Responsible party
One member's name and SSN. This is the person the IRS will contact. It does not have to be the manager or majority owner.
Reason for applying
"Started a new business" is the most common answer.
Form the LLC first. Get the EIN after the state approves your articles, not before. The IRS will ask for the LLC's start date, which should match (or be just after) the state filing date.
Apply now →

Corporation (C or S)

You incorporated, or you formed an LLC and elected S-corp tax treatment.

Verdict: required, no exceptions. Every C corporation and S corporation must have an EIN. The corporate tax return (Form 1120 or 1120-S) cannot be filed without one.
What to know
Apply after incorporating
Wait until your state approves the corporation. The EIN application asks for your incorporation date.
S-corp election is separate
Form 2553 (the S-corp election) is filed AFTER you have an EIN. The IRS uses the EIN to track the election.
LLC electing S-corp?
Same path. Form the LLC, get the EIN, then file Form 2553. The EIN stays the same after the S-corp election.
Heads up: if you change your tax election later (for example, S corp to C corp, or LLC to corporation), the IRS may issue a new EIN. Big tax events sometimes require new numbers.
Apply now →

Partnership

Two or more people in business together, not formed as an LLC or corporation. This includes general partnerships and limited partnerships.

Verdict: required. Every partnership must have an EIN. The partnership return (Form 1065) requires one.
When to apply
Before you start operating
Get the EIN before you open a bank account or invoice your first client. The bank will ask. So will the client.
Partnership agreement
You do not need a written agreement to apply, but you absolutely should have one in place. Without one, your state's default rules apply, and they may not be what you expect.
Type of partnership
The application asks if you are a general partnership, limited partnership, or LLP. Pick the one that matches what you actually filed.
Single-member LLCs that take on a partner: when you go from one owner to multiple, you may need a NEW EIN. The IRS treats it as a new entity. Check before assuming the old one carries over.

Nonprofit

A 501(c)(3) charity, religious organization, social club, foundation, or any other nonprofit entity.

Verdict: required. Every nonprofit needs an EIN. You cannot apply for tax-exempt status (Form 1023 or 1023-EZ) without one.
Order of operations for a new nonprofit
1. Form the entity
File articles of incorporation with your state as a nonprofit corporation.
2. Get the EIN
Apply at IRS.gov. On the application, choose "Non-profit organization" as your structure.
3. Apply for tax-exempt status
File Form 1023 (or 1023-EZ for smaller nonprofits) to be recognized as 501(c)(3). The EIN goes on this form.
4. Open a bank account
Banks require both the EIN and your state nonprofit corporation paperwork.
Important: getting an EIN does NOT make you tax-exempt. The EIN is just an ID. Tax-exempt status is a separate IRS determination.

Trust or Estate

A trust (revocable or irrevocable) or the estate of someone who has died.

Verdict: usually required. Most trusts and almost all estates need an EIN. The exact rules depend on type.
Who needs one
Estates of a decedent
Required as soon as the estate has any income or assets to manage. The executor applies on behalf of the estate.
Irrevocable trusts
Required. The trust files its own tax return (Form 1041) and needs its own EIN.
Revocable living trusts (during grantor's life)
Usually NOT required. The trust uses the grantor's SSN. After the grantor dies, the trust becomes irrevocable and needs an EIN.
Special-needs and similar trusts
Usually required. Each one has its own filing requirements.
Talk to a CPA or estate attorney for trust EINs. The wrong choice on the application can complicate the trust's tax filings for years. This is one of the few EIN scenarios where the help is worth it.

Hiring Employees

You are about to hire (or have already hired) anyone who will receive a W-2 from you.

Verdict: required, regardless of business structure. If you hire any employee, you must have an EIN to file payroll tax returns. There is no exception.
What "employee" means here
W-2 employees
Anyone you pay wages, withhold taxes from, and issue a W-2 to at year-end. You need an EIN.
1099 contractors
If you ONLY use contractors, you may not need an EIN (but should have one for the privacy reasons covered elsewhere). Contractors are not employees.
Family on payroll
Even hiring your spouse or kids as W-2 employees triggers the EIN requirement.
Statutory employees and household workers
If you pay a nanny, in-home caregiver, or similar at certain thresholds, you need an EIN to file Schedule H with your personal return.
Get the EIN before the first paycheck. You will need it to set up payroll, register with your state, and run direct deposits. Most payroll providers will not let you onboard without it.
Apply now →

Need a Business Bank Account

You want to open a separate checking account in your business's name.

Verdict: the IRS does not require it, but your bank almost certainly will. This is one of the most common reasons people apply.
Bank policies, in plain terms
LLCs and corporations
Every major bank requires an EIN. No exceptions.
Sole proprietors and DBAs
Some smaller banks and credit unions will open a "DBA" account using your SSN. Most will not. Even when allowed, an EIN is cleaner.
Online banks
Almost all require an EIN, even for sole proprietors. The verification systems they use are designed around EINs.
The bank will also ask for: your formation paperwork (articles of organization, articles of incorporation), the IRS EIN confirmation letter, and a government ID for each signer. Have all three ready.
Apply for your EIN →

Not sure

That is fine. The decision tree below covers most cases in three questions.

Quick decision tree

Question 1: Is your business an LLC, corporation, partnership, nonprofit, or trust?

If yes (anything except a sole proprietor or revocable living trust): you need an EIN. Stop here, apply.

If no (you are a sole proprietor): continue to Question 2.

Question 2: Do you have, or will you have, W-2 employees?

If yes: you need an EIN. Apply before you run your first payroll.

If no: continue to Question 3.

Question 3: Do you want to open a business bank account, or do you want to stop putting your SSN on W-9s?

If yes to either: you should get an EIN. It is free, takes 15 minutes, and there is no downside.

If no to both: you do not need one. You can keep using your SSN. But keep this page bookmarked, because most freelancers eventually decide they do want one.

Still not sure? When in doubt, apply. It is free, and there is no penalty for having an EIN you do not use. The downside of not having one (privacy exposure, banking friction, hiring delays) is real. The downside of having one is nothing.
Apply free at IRS.gov →

What to do after you have your answer

If you need or want an EIN, the next step is the application. It takes about 15 minutes online at IRS.gov, and you walk away with the number on the screen at the end.

The application asks about a dozen questions. Most of them are obvious. A few are not. The step-by-step application guide walks through every screen, including which structure to pick, what to enter for "responsible party," and what to do if you get a Reference 101 error.

More EIN guides