Independent Contractor EIN Requirements: Applying, Fees, and Recovery

An independent contractor can get an Employer Identification Number (EIN) directly from the IRS for free, in about 10 minutes, through the online application at irs.gov. Most sole proprietors aren’t legally required to have one — a Social Security Number works as your taxpayer ID — but many contractors get an EIN anyway to keep their SSN off every client’s Form W-9 and out of vendor databases.

Do You Actually Need One

If you’re a solo freelancer with no employees, the IRS does not require you to have an EIN. Your SSN is a valid taxpayer identification number on every tax form and client document you’ll sign.

An EIN becomes mandatory when your setup crosses one of these lines:

You have employees. Hiring even one person means filing employment tax returns, which requires an EIN.¹
Your business is a partnership or multi-member LLC. Any entity with more than one owner needs its own EIN regardless of how it’s taxed.²
Your business is a corporation.
You file excise tax returns.

None of those apply? Then it’s your call. Experienced contractors usually get one anyway. Handing your SSN to every new client is an identity-theft exposure that compounds with every W-9 you sign. An EIN on your paperwork keeps your personal number out of client accounting systems and procurement portals. For a single-member LLC, an EIN also reinforces the separation between you and the entity.

Gather This Before You Start

The online application cannot be saved. It times out after 15 minutes of inactivity, and a timeout means starting over.³ Have all of this in front of you first:

Your legal entity type — sole proprietorship, single-member LLC, multi-member LLC, partnership, or corporation. The application asks you to pick from a specific list.
The responsible party’s name and taxpayer ID (SSN or ITIN). This is the person who controls the entity’s funds and assets. For most contractors, that’s you.⁴
Your business’s legal name, physical address, and mailing address. Official IRS mail goes to whatever mailing address you enter.
Your reason for applying — “Started a New Business” or “Change in organization,” among other options.

Forming a partnership? You’ll need information on every partner. For an LLC, know the number of members, because that changes how the application routes you.

Applying Online

The IRS online EIN Assistant is free and issues your number immediately when the application clears validation.³ The tool is available at set hours in Eastern Time:

Monday through Friday, 6:00 a.m. to 1:00 a.m. the next day
Saturday, 6:00 a.m. to 9:00 p.m.
Sunday, 6:00 p.m. to midnight

The screens walk you through confirming you’re the responsible party, selecting your entity type, choosing your reason for applying, and entering personal and business information. Review the summary screen carefully. A transposed digit in your SSN or a misspelled business name causes headaches later.

Once the submission passes validation, your nine-digit EIN appears on screen with a confirmation notice, the CP 575. Download and print that notice right away. It’s your permanent proof of assignment, and banks and state agencies will ask for it. The IRS limits online applications to one EIN per responsible party per business day, so multiple entities mean multiple days.³

If You Hit Reference Number 101

This error means the IRS already has an entity on file with a name identical or very similar to yours. It’s often a partially processed prior application or a close name match, not fraud. Call the IRS Business and Specialty Tax Line at 800-829-4933. A representative can check the record and typically resolves it by having you fax your application along with formation documents.

Other Ways to Apply

The online tool is fastest, but it’s not open to every applicant. If your principal place of business is outside the United States and U.S. territories, you can’t use it.⁵

By Phone (International Applicants Only)

Applicants with no legal residence or principal place of business in the U.S. or its territories can call 267-941-1099 (not toll-free), Monday through Friday, 6:00 a.m. to 11:00 p.m. Eastern. Have a completed Form SS-4 ready; the representative works through it with you and assigns the EIN on the call. Domestic applicants cannot use this line.⁵

By Fax or Mail

Domestic applicants who can’t use the online system can fax a completed Form SS-4 to 855-641-6935 and expect the EIN back by fax in about four business days.⁶ Mail is the slowest option: send Form SS-4 to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999, and expect roughly four to five weeks.

Don’t Pay for Something That’s Free

The IRS never charges a fee for an EIN.³ Not online, not by fax, not by mail. Third-party sites designed to look official charge up to $300 to file the same free application on your behalf.⁷ They tend to rank near the top of search results with names and designs suggesting government affiliation. The safest habit: only apply at a URL ending in .gov, and go directly to irs.gov.

Using Your EIN on Client and Tax Paperwork

Once you have the number, it replaces your SSN on most business paperwork. The most immediate use is Form W-9, which clients require before they pay you. Your EIN goes in Part I under “Employer identification number,” a separate field from lines 1 and 2. Line 1 is for your name (or the owner’s name if you’re a disregarded entity); line 2 is for your business or disregarded entity name if it differs.⁸ Putting your EIN in that field instead of your SSN keeps your personal number off every client’s books.

You’ll also need the EIN to open a dedicated business bank account. Most banks ask for the CP 575 confirmation letter to verify the number and open the account in your business’s legal name. Keeping business funds separate is basic bookkeeping for sole proprietors and, for LLCs and corporations, essential to preserving the liability protection the entity provides.

At tax time, sole proprietors report business income on Schedule C attached to Form 1040, and the EIN goes in the field labeled “Employer ID number (EIN)” near the top of the schedule.⁹

Keeping Records Current and Recovering a Lost Number

Getting the EIN is the easy part. Keeping the IRS updated when things change is where contractors slip. If your responsible party changes — a new partner takes financial control, or your LLC changes its managing member — you’re required to file Form 8822-B within 60 days.¹⁰ Missing that deadline doesn’t usually trigger an immediate penalty, but it creates problems later when the IRS has outdated information about who’s authorized to act on the account.

The same form handles a business address change. Tax notices sent to an old address don’t stop deadlines from running, so keep the mailing address current.

Lost the number entirely, with no CP 575 and no old return to check? Call the IRS Business and Specialty Tax Line at 800-829-4933, open Monday through Friday, 7:00 a.m. to 7:00 p.m. local time. After identity verification, a representative can read the number to you or mail Letter 147C as written confirmation.⁶

1
Internal Revenue Service. About Form 941, Employer’s Quarterly Federal Tax Return
2
Internal Revenue Service. Instructions for Form SS-4 – Application for Employer Identification Number
3
Internal Revenue Service. Get an Employer Identification Number
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Internal Revenue Service. Responsible Parties and Nominees
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Internal Revenue Service. Instructions for Form SS-4 (12/2025)
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Internal Revenue Service. Employer Identification Number
7
Federal Trade Commission. FTC Warns Operators of Websites That Charge for an Employer Identification Number and Claim Affiliation With the IRS
8
Internal Revenue Service. Form W-9 (Rev. March 2024)
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Internal Revenue Service. Schedule C (Form 1040) – Profit or Loss From Business
10
Internal Revenue Service. Form 8822-B, Change of Address or Responsible Party – Business