How to Get a New EIN in 2026: Complete Guide for Business Owners

An Employer Identification Number (EIN) is your business’s tax ID—the IRS equivalent of a Social Security number for your company. For the 2026 tax year, whether you’re launching your first business or restructuring an existing entity, obtaining a new EIN is often one of your first critical steps. The good news: the process has become faster and more streamlined than ever. With online application options available through the IRS, you can receive your EIN immediately and begin opening business bank accounts, hiring employees, and filing taxes with confidence. This comprehensive guide walks you through every step of obtaining a new EIN in 2026, including eligibility requirements, application methods, processing timelines, and common mistakes to avoid.

Table of Contents

• Key Takeaways
• What Is an EIN and Why Does Your Business Need One?
• When Do You Need to Obtain a New EIN?
• Who Is Eligible to Apply for an EIN?
• What Are the Different Methods for Obtaining a New EIN?
• How Do You Apply for an EIN Online in 2026?
• What Information Do You Need Before Applying?
• How Long Does It Take to Get Your EIN?
• Uncle Kam in Action: Business Owner’s EIN Success Story
• Next Steps
• Frequently Asked Questions
• Related Resources

Key Takeaways

• An EIN is essential for hiring employees, opening business bank accounts, and filing federal tax returns as a business entity.
• Online EIN applications are processed immediately by the IRS for eligible applicants, with no waiting period.
• Form SS-4 is the official IRS form for applying for an EIN and takes only 15 minutes to complete online.
• Multiple application methods exist: online (fastest), fax, mail, or phone for international applicants.
• In 2026, IRS processing faces delays due to workforce reductions, so apply early if using fax or mail methods.

What Is an EIN and Why Does Your Business Need One?

An Employer Identification Number (EIN)—also called a Federal Employer Identification Number (FEIN)—is a unique nine-digit number issued by the Internal Revenue Service. Think of it as your business’s Social Security number. Just as individuals use SSNs to establish credit and file taxes, businesses use EINs to report income, pay payroll taxes, and maintain compliance with federal regulations.

The IRS assigns EINs to sole proprietorships, partnerships, LLCs, S corporations, C corporations, nonprofits, trusts, and estates. For the 2026 tax year, your EIN serves as the primary identifier linking your business to all federal tax obligations. Unlike a Social Security number, which is tied to an individual, an EIN changes if you restructure your business entity or change ownership significantly. This is why understanding when and how to obtain a new EIN is critical for business owners navigating tax compliance.

Critical Functions of an EIN in Your Business Operations

• Hiring Employees: Required to file payroll taxes and issue W-2 forms to employees. Without an EIN, you cannot legally hire full-time or part-time staff.
• Opening a Business Bank Account: Most banks require an EIN to set up a dedicated business checking account, which separates personal and business finances.
• Filing Federal Tax Returns: Partnerships, corporations, and LLCs must file tax returns using their EIN. Self-employed sole proprietors can use their SSN but often benefit from an EIN.
• Building Business Credit: Lenders and credit agencies use your EIN to establish a business credit profile separate from your personal credit.
• Contractor Payments: When paying independent contractors $600 or more annually, you must report these payments on Form 1099-NEC using the contractor’s EIN or SSN.

When Do You Need to Obtain a New EIN?

Not every business event requires a new EIN. The IRS is specific about which circumstances trigger the need to obtain a new EIN. Understanding these triggers helps you maintain compliance and avoid unnecessary applications.

Situations Where You MUST Obtain a New EIN

• Starting a new business: Whether you’re forming your first LLC, C corporation, partnership, or hiring your first employee as a sole proprietor, you’ll need an EIN.
• Changing business entity type: Converting from a sole proprietorship to an LLC, or from an S corporation to a C corporation, requires a new EIN.
• Incorporating or forming an LLC: Moving from personal business operation to a formal entity structure requires a new EIN.
• Merger or acquisition: When two businesses merge or one acquires another, the surviving entity may need a new EIN depending on structure.
• Significant ownership change: If 50% or more of ownership changes hands, the IRS may require a new EIN.
• Bankruptcy or closure: If you cease business operations or file bankruptcy, you may need to close your current EIN and apply for a new one upon restarting.

Situations Where You DO NOT Need a New EIN

• Renewing your business license or registering with your state.
• Relocating your business to a new address.
• Changing your business name (you keep the same EIN).
• Changing ownership structure without changing the entity type (e.g., adding a partner to an existing partnership).
• Updating your business activities or expanding into new services.

The key distinction is whether your business’s legal structure or fundamental ownership changes. Administrative updates like name or address changes do not require a new EIN for the 2026 tax year.

Who Is Eligible to Apply for an EIN?

For the 2026 tax year, the IRS has streamlined EIN eligibility requirements. The goal is to ensure that businesses filing taxes and hiring employees have proper federal identification. Here’s who qualifies:

Business Entities Eligible for an EIN

Business Type	EIN Required?	Conditions
Sole Proprietorship	Optional (if employees)	Required if you hire employees; optional if you’re the only worker.
Partnership	Required	All partnerships must have an EIN to file Form 1065 returns.
LLC (Single-Member)	Optional	Optional unless taxed as corporation or hiring employees.
LLC (Multi-Member)	Required	Treated as partnership; must file taxes as a business entity.
S Corporation	Required	All S corps must file Form 1120-S and obtain an EIN.
C Corporation	Required	All C corps must file Form 1120 corporate tax returns.
Nonprofit	Required	All nonprofits seeking 501(c)(3) status need an EIN.
Trust/Estate	Required	Required if trust has business income or multiple beneficiaries.
Foreign Entity	Required	Required if operating in the United States or filing U.S. tax returns.

Beyond these basic categories, the IRS also allows you to apply for an EIN if you’re establishing a qualified retirement plan for your business, managing employee benefits, or conducting international business operations.

What Are the Different Methods for Obtaining a New EIN?

The IRS offers multiple pathways for obtaining a new EIN, each with different processing speeds and eligibility criteria. Your choice depends on your business location, timeline, and whether you have a U.S. tax identification number (SSN or ITIN).

Method 1: Online Application (Fastest – Immediate Issuance)

The online application through IRS.gov is the fastest way to obtain a new EIN. If you apply online, you’ll receive your EIN immediately upon completion. This is the preferred method for U.S.-based businesses with a valid Tax Identification Number (TIN).

• Processing Time: Immediate issuance (within minutes).
• Eligibility: U.S. businesses with a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
• Advantages: No waiting period, no postage required, confirmation number provided immediately.
• Requirements: Computer or smartphone with internet access; knowledge of your responsible party’s information.

Method 2: Fax Application (1-2 Weeks)

Faxing Form SS-4 to the IRS is a backup option when online application isn’t available. For 2026, expect longer processing due to IRS staffing challenges. The IRS must receive your fax at the appropriate service center based on your business location.

• Processing Time: 1-2 weeks (may be longer in 2026 due to IRS workforce reductions).
• Form Required: Form SS-4, Application for Employer Identification Number.
• Advantages: Works if you lack internet access or need to submit physically signed documentation.
• Caution: Verify the correct fax number based on your state before sending.

Method 3: Mail Application (4+ Weeks)

Mailing a completed Form SS-4 to your regional IRS office is the slowest option but requires no special technology. For 2026, expect processing delays beyond normal 4-week timelines due to the IRS processing backlog of paper returns (294,052 returns pending as of December 2025).

• Processing Time: 4+ weeks (potentially longer in 2026).
• Form Required: Form SS-4 with all required information completed.
• Mailing Address: Depends on your state; check IRS.gov for the correct service center address.
• Best For: Applicants without internet access; foreign entities without online access.

Method 4: Phone Application (International & Special Circumstances)

Foreign entities and some special situations can apply via phone through the IRS Business & Specialty Tax Line. This method provides personal assistance but requires advance preparation and may take longer than online applications.

• Who Can Use This: Foreign business entities, trusts, and other special situations.
• Phone Number: 1-800-829-4933 (international applicants may use alternative numbers).
• Preparation: Have all required information ready before calling; IRS wait times may be long.
• Processing Time: Varies; you receive a confirmation number but the EIN by mail (1-2 weeks).

How Do You Apply for an EIN Online in 2026?

The online EIN application process through the IRS is straightforward and takes approximately 15 minutes. Here’s the step-by-step procedure for obtaining a new EIN online in 2026:

Step-by-Step Online Application Process

• Step 1: Gather Required Information – Before starting, collect details about your responsible party (owner), business address, and business type. Most applications take 10-15 minutes if you’re prepared.
• Step 2: Visit IRS.gov – Go to the official IRS EIN application page and click “Apply Online for an EIN.”
• Step 3: Verify Eligibility – Confirm you’re a U.S.-based business with a valid SSN or ITIN. Foreign entities should use phone or mail methods.
• Step 4: Complete the Online Form – Enter your business name, business type (LLC, partnership, S corp, etc.), principal business activity, responsible party information, and business address.
• Step 5: Review Your Responses – Double-check all information for accuracy before submitting. Errors can result in rejection or delays.
• Step 6: Submit the Application – Click “Submit” and receive immediate confirmation.
• Step 7: Receive Your EIN – Your new EIN appears on the screen immediately. Write it down and keep the confirmation page.
• Step 8: Receive Official Documentation – Within 2 weeks, the IRS mails an official confirmation letter with your EIN to your business address.

What Information Do You Need Before Applying?

Having the right information prepared before starting your online application prevents errors and delays. Here’s the complete list of what you’ll need:

Required Information Checklist

• Business Legal Name: The exact name your business is registered under with your state (not a DBA unless that’s your registered name).
• Doing Business As (DBA) Name: If your business operates under a different name than its legal name, provide the DBA.
• Business Type: Select from sole proprietor, partnership, corporation, LLC, nonprofit, trust, or other (you’ll specify).
• Principal Business Activity: A brief description of what your business does (e.g., “graphic design services,” “retail clothing sales”).
• Business Address: Physical street address where your business operates (not a PO Box for the primary address).
• Mailing Address: Where the IRS should mail correspondence (can differ from business address).
• Responsible Party Information: The owner’s or authorized person’s full name, SSN or ITIN, title, and date of birth.
• Business Start Date: The date you began business operations (or plan to).
• Number of Employees: How many employees you have or plan to hire.
• Reason for Applying: Indicate whether you’re starting a new business, opening a branch, or changing an existing entity’s structure.

The online application won’t accept the request without accurate information. If you make mistakes, your application may be rejected and you’ll need to reapply. Triple-check spelling, especially for your legal business name and responsible party’s name.

How Long Does It Take to Get Your EIN?

The processing timeline for your EIN depends entirely on the application method you choose. For 2026, be aware that the IRS faces significant workforce challenges that could extend traditional processing times.

Application Method	Processing Time (2026)	Notes
Online via IRS.gov	Immediate (minutes)	Fastest option. EIN displayed on screen; written confirmation mailed within 2 weeks.
Fax Form SS-4	1-2 weeks (potentially 3-4 weeks in 2026)	Expect delays due to IRS staffing reductions. Verify correct fax number by state.
Mail Form SS-4	4+ weeks (potentially 6-8 weeks in 2026)	Slowest method. Paper processing backlog is significant. Only use if no other option available.
Phone (International/Special)	1-2 weeks for written confirmation	Receive confirmation number by phone but EIN by mail. Phone wait times may be long in 2026.

 

Uncle Kam in Action: How One Business Owner Obtained an EIN and Saved Thousands Through Proper Structure

Client Snapshot: Sarah Chen, 38, decided to transition her successful freelance graphic design practice into a formal business entity. Operating as a sole proprietor with annual income of $180,000, she was paying self-employment taxes on every dollar of profit and lacking critical legal protections. She had three part-time contractors helping with projects but no formal business structure.

Financial Profile: Sarah’s annual design revenue: $180,000. Self-employment tax (2026): approximately 15.3% of net profit ($18,360 annually). No business liability protection. Business and personal finances commingled. She was concerned about expanding her business but feared the tax implications.

The Challenge: Sarah recognized that her sole proprietorship structure was inefficient. She was paying self-employment taxes on profits she didn’t withdraw, couldn’t separate business and personal expenses effectively, and lacked asset protection if a client sued. When she applied for a business loan to hire her first full-time employee, the bank recommended establishing a formal LLC before proceeding. She needed a new EIN immediately but didn’t know where to start.

The Uncle Kam Solution: Our team guided Sarah through obtaining a new EIN for her LLC formation. Rather than simply helping her get the EIN, we reviewed her overall business structure and designed a comprehensive entity structure strategy. We recommended she form an LLC and elect to be taxed as an S corporation. Here’s what happened:

• Filed her LLC formation documents with the state (January 2026).
• Applied for her new EIN online through IRS.gov (received immediately).
• Filed Form 2553 to elect S corporation tax status for the LLC (February 2026).
• Opened a dedicated business bank account using the new EIN (within one week).
• Hired her first full-time employee using the new EIN for payroll taxes (March 2026).

The Results:

• Tax Savings: By electing S corp status, Sarah paid herself a $100,000 reasonable salary (paying 15.3% self-employment tax on that portion) and took the remaining $80,000 as a profit distribution (no self-employment tax). This saved her approximately $9,200 annually in self-employment taxes compared to the sole proprietorship structure.
• Investment: Total cost for LLC formation, EIN, S corp election, and tax planning consultation: $3,500.
• Return on Investment (ROI): First-year savings of $9,200 on a $3,500 investment = 2.6x return on investment in the first 12 months. By year two, with accumulated savings and improved business structure, Sarah projected 3.2x ROI.

Beyond the tax savings, Sarah gained limited liability protection, professional credibility with clients, the ability to build separate business credit, and streamlined accounting and expense tracking. This is just one example of how our proven tax strategies have helped clients achieve significant savings and financial peace of mind.

Next Steps

Now that you understand the EIN application process, here are the immediate actions to take:

• Step 1: Determine if You Need an EIN – Review the eligibility section above and confirm your business qualifies. Sole proprietors without employees may be optional; all other entities require one.
• Step 2: Gather Required Information – Compile your responsible party’s SSN, business address, business type, and principal activity description.
• Step 3: Choose Your Application Method – For speed, use the online method via IRS.gov. For special circumstances (foreign entities, no internet), use fax or mail.
• Step 4: Complete Your Application – Visit IRS.gov and apply online (15 minutes) or submit Form SS-4 using your preferred method.
• Step 5: Review Your Business Structure – While obtaining your EIN, consider whether your current entity type (sole proprietor, LLC, S corp, C corp) maximizes your tax efficiency. Our comprehensive tax strategy services can help align your structure with your income goals.

Frequently Asked Questions

Can I Apply for an EIN Without a Business License?

Yes. You do not need a state business license before applying for a federal EIN. Many business owners obtain their EIN first, then use it to apply for state licenses and local permits. However, check your state’s requirements—some states may require an EIN to issue a business license, while others issue the license first. The order depends on your state’s specific process.

How Much Does It Cost to Obtain an EIN?

There is absolutely no fee to apply for an EIN from the IRS. All application methods—online, fax, mail, or phone—are completely free. If anyone charges you a fee to apply for an EIN, you’re being scammed. The IRS explicitly states that EIN applications are free through their official channels.

What If I’ve Already Applied for an EIN and Haven’t Received It Yet?

If you applied online, you should have received your EIN immediately and can use that number to open a bank account. Written confirmation arrives by mail within 2 weeks. If you applied by fax or mail and it’s been longer than expected (given 2026 delays), call the IRS at 1-800-829-4933 with your confirmation number. Processing delays are common in 2026 due to IRS workforce reductions, but they can sometimes expedite if your situation is urgent.

Can I Use My Social Security Number Instead of Getting an EIN?

It depends on your business structure. Sole proprietors without employees can use their Social Security number to file business taxes. However, if you have employees, you must have an EIN. Partnerships, LLCs (taxed as partnerships), and all corporations require an EIN. Even sole proprietors without employees benefit from an EIN for credibility and separating business from personal credit.

What Happens if I Accidentally Apply for Multiple EINs for the Same Business?

If you’ve applied multiple times and received multiple EINs for the same business, you should contact the IRS immediately. Multiple EINs for one business can create confusion with tax filings, payroll records, and business credit. The IRS can consolidate or close duplicate EINs. Call 1-800-829-4933 and explain the situation; they’ll guide you through consolidation.

Do I Need a New EIN If I Change My Business Name?

No. Changing your business name does not require a new EIN. You keep the same EIN and update the IRS about your name change through Form 8822-B (Change of Address). This is one of the most common misconceptions about EINs—your number stays the same as long as your business structure and ownership remain unchanged.

Can I Use My EIN to Build Business Credit?

Yes. Your EIN is crucial for building separate business credit. Once you have an EIN, you can apply for business credit cards, establish business loans, and build a credit profile independent of your personal credit. Business credit helps you qualify for better loan terms and demonstrates financial responsibility to lenders and suppliers.

Is the Online EIN Application Secure?

Yes, the IRS’s online EIN application system is secure and encrypted. It uses the same security standards as online banking. The IRS website (irs.gov) is an official government site. Be cautious of third-party websites offering to apply on your behalf—use only irs.gov directly to avoid scams.

Related Resources

• Apply for an Employer Identification Number (EIN) Online – IRS.gov
• Entity Structuring & Business Formation Services – Uncle Kam
• About Form SS-4: Application for Employer Identification Number – IRS.gov
• 2026 Tax Strategy Services for Business Owners – Uncle Kam
• Form SS-4 PDF (Download) – IRS.gov

Current Date: February 2, 2026. This information reflects 2026 tax year requirements and IRS procedures.

Last updated: February, 2026