EIN (Tax ID) 101: What It Is, When You Need It, and How to Get Yours Fast
If you’re starting or growing a business, you’ll likely need an EIN (Employer Identification Number) — also called a Federal Tax ID Number. It’s a free number from the IRS that identifies your business for tax and legal purposes.
At SimpleCorp, we help entrepreneurs get their EIN fast and error-free so they can open bank accounts, hire employees, and stay compliant without the headache. In this guide, we’ll cover everything you need to know — plus give you a free EIN checklist download to keep you on track.
What is an EIN?
An Employer Identification Number is a 9-digit number issued by the IRS that works like a Social Security Number for your business.
Also known as:
Federal Tax ID Number
Business Tax ID
IRS Number
Primary uses:
Filing federal taxes
Opening a business bank account
Hiring employees
Applying for business licenses
Building business credit
When Do You Need an EIN?
You need an EIN in these common scenarios:
Hiring employees
Forming an LLC, corporation, or nonprofit
Opening a business bank account
Applying for loans or credit
Filing certain federal and state taxes
Applying for licenses or permits
💡 Pro Tip: Even if you’re a sole proprietor with no employees, an EIN can protect your privacy and make your business look more professional.
How to Get an EIN
Option 1: Apply yourself directly with the IRS (online, fax, or mail) — free, but you must navigate IRS forms.
Option 2: Let SimpleCorp handle it when you form your business — we’ll secure your EIN in 1 business day so you can move forward fast.
💡 Pro Tip: You could run into delays and issues if you do not file an EIN correctly online. Avoid costly mistakes and file with a professional.
Next Steps After Getting Your EIN
Open your business bank account
Apply for business licenses/permits
Register for state taxes (if applicable)
Set up payroll
Start building business credit
FAQs About EINs
Q: Do I need an EIN if I’m a sole proprietor?
A: Not legally, but it’s strongly recommended.
Q: Is an EIN the same as a state tax ID?
A: No — an EIN is federal. You may still need a state tax ID.
Q: How long does it take to get an EIN?
A: IRS online applications can be instant. SimpleCorp clients usually receive theirs in 1 business day.
🎁 Free Download: EIN Starter Checklist
Your EIN is more than a number — it’s the key that unlocks the next stage of your business journey. From taxes to banking to hiring, having your EIN in place keeps your business ready for growth and opportunity. Don’t let paperwork slow you down. With SimpleCorp, you can check this box today and move forward with the peace of mind that your business is set up the right way.