I Almost Paid $79 for This
I almost paid LegalZoom $79 for my EIN before discovering I could get one from the IRS website in the time it takes to make coffee. And by "almost," I mean I had my credit card out and was one click away from checkout when something in the description caught my eye: "We file on your behalf with the IRS." File what? A free form? That's when I Googled "get EIN directly from IRS" and found out the whole thing is free and takes about five minutes.
This is one of those things that frustrates me about the side hustle advice industry. Companies like LegalZoom, Incfile, and ZenBusiness charge $49-99 to do something the IRS will let you do yourself, for free, in less time than it takes to read their sales page. They're not doing anything illegal — they're providing a service — but the service is filling out a form that has about 8 questions on it. You can handle 8 questions.
What an EIN Is (Quick Version)
An EIN is an Employer Identification Number. Think of it as a Social Security number for your business. It's a 9-digit number the IRS assigns to identify your business entity for tax purposes. Despite the word "employer" in the name, you don't need to have employees to get one.
The main practical benefit for side hustlers: you can use your EIN instead of your Social Security number on W-9 forms. When a client asks you to fill out a W-9 before they pay you, giving them your EIN means your SSN isn't floating around on someone else's accounting files. That alone is worth the five minutes it takes to apply.
Who Needs an EIN
If you formed an LLC, you need an EIN. Full stop. The IRS requires LLCs to have their own tax identification number, even single-member LLCs that are disregarded for tax purposes.
If you're a sole proprietor — meaning you're doing business under your own name without a formal entity — an EIN is technically optional. You can use your SSN for everything. But I'd argue you should get one anyway. It's free, it keeps your SSN more private, and it makes opening a business bank account easier. Some banks won't let you open a business account without an EIN, even as a sole proprietor.
You absolutely need an EIN if you plan to hire employees or independent contractors, if you want to open a business bank account at most traditional banks, or if you file certain tax returns like partnership or corporation returns. But for the average side hustler, the privacy benefit is reason enough.
The IRS Online Application: Step by Step
Go to irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. It's a mouthful of a URL, but you can also just search "IRS EIN application" and it's the first result. Make sure you're on irs.gov — not a third-party site that looks official but charges a fee.
The application is only available during IRS business hours: Monday through Friday, 7 AM to 10 PM Eastern. Yes, a government website has business hours. I found this out when I tried to apply on a Saturday night.
The questions you'll answer:
First, it asks what type of entity you are. For most side hustlers, this is either "Sole Proprietor" (no LLC) or "Limited Liability Company" (if you have an LLC). Pick the right one.
Then it asks why you're applying. If you're a new business, select "Started new business." If you formed an LLC, select "Formed new LLC." The reason you select here doesn't really matter for the outcome — you're getting the same EIN either way — but pick the one that's most accurate.
It'll ask for your personal information: name, SSN, address. If you have an LLC, it asks for the LLC's legal name and formation state. It asks for a mailing address and the "responsible party" (that's you).
You'll pick a business start date or the date your LLC was formed. And you'll select your type of business activity from a list — things like "Retail," "Real estate," "Transportation & warehousing," "Other." Pick the closest match. For freelancing or gig work, "Other" with a brief description usually works fine.
After you submit, you get your EIN immediately. Right there on the screen. The IRS generates a confirmation letter you can download as a PDF — do that. Save it. You'll need the EIN for bank accounts, tax filings, and W-9 forms going forward.
Common Gotchas
The website times out. The IRS application has a session timeout that's aggressively short — something like 15 minutes of inactivity. If you walk away to answer a phone call and come back, you might have to start over. It's only 8 questions, so it's not a huge loss, but it's annoying.
One EIN per responsible party per day. The online system limits you to one EIN per Social Security number per business day. If you need EINs for multiple entities (say, two LLCs), you'll need to apply on separate days or use the mail/fax method for the second one.
Your LLC name has to match exactly. If your LLC is registered as "Samuels Consulting LLC" with your state, type it exactly that way in the IRS application. Not "Samuels Consulting" without the LLC. Not "Samuels Consulting, LLC" with a comma. The IRS is particular about this, and a mismatch can cause issues later when you're trying to link the EIN to your LLC for banking.
Non-US persons can't use the online tool. If you don't have a US SSN or ITIN, you'll need to apply by mail or fax using Form SS-4. The online application requires a US taxpayer identification number.
What to Do With Your EIN After You Get It
Now that you have a 9-digit number on a PDF, where it actually gets used:
Open a business bank account. Bring your EIN confirmation letter and, if you have one, your LLC formation documents. Most banks can open the account the same day. I walked into a local credit union, showed them my EIN letter and Texas LLC certificate, and had a business checking account open within 30 minutes.
Update your W-9. Next time a client asks for a W-9, use your EIN in the tax ID field instead of your SSN. This is the whole point — fewer people with access to your Social Security number.
Use it on your tax returns. If you have an LLC, your EIN goes on Schedule C where it asks for the business's identification number. Sole proprietors can also use their EIN here instead of their SSN.
Keep it somewhere you won't lose it. I keep my EIN confirmation in a Google Drive folder called "Business Docs" alongside my LLC formation certificate, operating agreement, and business insurance policy. Some people use a password manager to store it. Whatever works — just make sure it's somewhere you can find it in February when you're doing taxes at midnight.
For more on forming an LLC (if you decide you actually need one), read our LLC guide. And if you're considering hiring a service for other business formation tasks, our LegalZoom review breaks down when their services are worth the cost and when you're better off DIY.
Frequently Asked Questions
Can I get an EIN without an LLC?
Yes. Sole proprietors can get an EIN. You don't need any kind of formal business entity. When the IRS application asks for your entity type, select "Sole Proprietor" and it works the same way. The EIN gets tied to your Social Security number on the IRS side, but you can use the EIN instead of your SSN on W-9 forms and other business documents.
Is there any reason NOT to get an EIN?
Not really. It's free, it takes five minutes, and it gives you an extra layer of identity protection by keeping your SSN off business forms. The only minor hassle is that some banks require both your SSN and EIN for business accounts, so it's one more number to keep track of. But there's no downside to having one.
Do I need a new EIN if I change my business name or start a new side hustle?
If you're a sole proprietor, you generally keep the same EIN even if you change your business name or pivot to a different type of work. You only need a new EIN if you change your business structure — like going from a sole proprietorship to an LLC or partnership. If you form a new LLC, that new entity needs its own EIN.
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