What is an EIN number?

An EIN number, short for employer identification number, is a 9-digit federal id number issued by the IRS to identify your business for tax purposes. Think of it as your business's version of a Social Security number. Like, you need your Social Security number, your business needs its number too.

It is also referred to as a tax id number or federal id number, and all three terms mean exactly the same thing. The IRS uses your business’ federal tax id to track your business's tax obligations, payroll filings, and financial activity.

Here is the format of an EIN number:

XX-XXXXXXX (2 digits, hyphen, 7 digits).

For example: 12-3456789.

EIN vs TIN: What's the difference?

A lot of founders get really confused between EIN and TIN. While all the numbers have their own significance, understanding their differences is really important for you. Here is a quick differentiation for easy comparison:

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Why you need an EIN number

Not every founder is legally required to have an EIN, but most apply anyway. The IRS requires one if you have employees, operate as a corporation, partnership, or multi-member LLC, make taxable payments outside the US, or file employment, alcohol, tobacco, or firearms tax returns.

Even without a legal requirement, most founders get one because it's needed to open a US business bank account, protects your personal SSN on business documents, is required for most business credit cards and loans, and helps build separate business credit.

How to get an EIN number: Step-by-step

If you don't have an EIN yet, the good news is that applying is completely free and straightforward. Here's how to get the federal tax ID directly through the IRS:

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Even though the process of applying for a FEIN number seems easy, there are a few considerations you need to take care of, or else it may hinder your application, adding to your time and effort. Here are the important things to remember before you start your application:

1. You must complete the online session in one go. The IRS times you out after 15 minutes of inactivity.
   
2. The 'responsible party' is basically the individual who controls the entity. This is typically you, the founder.
   
3. You can only apply for 1 EIN per day per responsible party.
   
4. The online application is only available to US-based principals. If you are applying from outside the US, use the fax or mail option.
   

How to find your EIN number: 5 quick methods

Now, if you have received your FEIN number but you forgot about it, don't worry. Before you stress about how to find your EIN number, check these 5 sources. In most cases, you'll locate it within minutes. However, it is still important to take notes of such important details, as you never know when you may need them.

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1. Check your IRS CP 575 letter

When you first applied for your company’s FEIN number, remember the IRS sent you a computer-generated confirmation called the CP 575 letter. This is the primary document for your EIN. If you applied online, you received a downloadable PDF immediately. If you applied by mail, it arrived within 4 to 6 weeks.

Search your email for 'IRS EIN confirmation' or check your physical business records. If you have it, your search ends here.

2. Look at your business tax returns

Your FEIN number appears on every business tax return you've ever filed. Depending on your business structure, here's where to find it:

1. Sole proprietors: Schedule C (Form 1040)
   
2. Partnerships and multi-member LLCs: Form 1065
   
3. C corporations: Form 1120
   
4. S corporations: Form 1120-S
   

Your EIN never changes once assigned, so any past return will have the same number.

3. Check your business bank account documents

Most banks require your EIN to open a business bank account. Look at your original account application, your monthly statements, or any loan documents. Your federal id number lookup usually appears in the account information section.

4. Search payroll and contractor records

If you've paid employees or contractors, your EIN is on every W-2, W-3, and 1099-NEC form you've issued. Check your payroll records or contact your payroll provider directly.

5. Call the IRS Business & Specialty Tax Line

If the above options come up empty, call the IRS Business & Specialty Tax Line at 1-800-829-4933, available Monday through Friday, 7:00 a.m. to 7:00 p.m. local time. You'll need to verify your identity with the business's legal name, address, and your personal Social Security number (as the authorized party on the original application). They can provide your EIN number over the phone the same day.

EIN lookup: How to find another company's EIN

As a founder, for your business’ requirements, sometimes you need to do an EIN lookup for a vendor, partner, or client, apart from your own company. So here are the ways to find another company's tax id number lookup:

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For most private businesses, the easiest approach is to contact them directly. If you are vetting a vendor or contractor, requesting their EIN is a standard part of any due diligence process, and they are generally used to being asked.

What if you've lost your EIN number?

Now, there may come up a situation where you may lose your EIN, worry not! Do not make the mistake of applying for a new number immediately. EIN is easy to find, and also, the IRS assigns only 1 EIN per business. Applying for a duplicate can trigger rejected filings, delayed refunds, or a flag on your account.

Instead, follow these steps to recover your tax ID number:

• Check your email for the original IRS CP 575 confirmation PDF
  
• Look at a previously filed business tax return
  
• Contact your bank, accountant, or payroll provider, they'll have it on file
  
• Call the IRS Business & Specialty Tax Line at 1-800-829-4933 (Monday to Friday, 7:00 a.m. to 7:00 p.m. local time) and request a Form 147C verification letter
  

If you need it urgently, calling is faster than requesting the 147C letter by mail, which can take 7 to 14 business days to arrive.

When do you need a new EIN number?

Your tax ID number stays with your business permanently, but certain structural changes require a new one. Even though every business is allowed only 1 EIN, in some cases, you may need a new EIN number. Following are the cases when you can apply:

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Use your EIN number to open a US business account

Once you've tracked down your tax ID number, you are ready to do more with it. Founders building globally need more than just a tax ID, they need a business account built for cross-border operations.

With Aspire, you can open a US business account¹ and start sending, spending, and scaling in 30+ countries. Your EIN number gets you through the door. Aspire handles the rest.

Conclusion

Your EIN number is one of those things that quietly runs in the background of everything your business does. You need it when you open your bank account, when you file your taxes, when you hire your first employee, and when you pay your first contractor. It is not complicated, it is not expensive, and it does not take long to get. But losing track of it can slow everything down.

Now you know exactly where to find it, how to recover it if it is lost, and when you might need a new one. Keep it somewhere safe, and you will never have to scramble for it again.

Frequently asked questions

1. How do I find my federal tax ID if I've lost the IRS letter?

Start by checking your previous business tax returns, your bank account documents, or any 1099 forms you've issued. If none of those work, call the IRS Business & Specialty Tax Line and request your EIN number over the phone. You'll need to verify your identity before they share it.

2. What is an EIN number used for?

Your EIN number is used for federal tax filing, opening a business bank account, applying for business credit cards and loans, processing payroll, sending 1099s to contractors, and applying for business licenses. It is essentially your business's federal id number lookup for all financial and tax purposes.

3. How to get an EIN number for free?

You can apply for an EIN for free directly on the IRS website at irs.gov/ein.² Complete Form SS-4 online and you'll receive your federal id number lookup immediately upon approval. The whole process takes around 15 to 20 minutes. There's no fee from the IRS, and you don't need a third-party service to apply.

4. Can I do an EIN lookup for another company?

Yes, but with limitations. For publicly traded companies, you can do an EIN lookup through the SEC's EDGAR database. For non-profits, the IRS Tax-Exempt Organization Search tool works well. For private companies, the tax id number lookup isn't publicly available. You'll need to contact the company directly or pull a business credit report.

5. Is a federal id number the same as an EIN number?

Yes. federal id number, EIN number, employer identification number, and tax id number lookup all refer to the same thing: the 9-digit number the IRS issues to identify your business for tax purposes. The terms are used interchangeably, and you'll often see all of them on the same document.