Ein Registration

An Employer Identification Number is a nine-digit federal tax identifier for your business: the business equivalent of a Social Security Number. You need one before you can open a business checking account, hire employees, apply for workers compensation insurance, or file payroll taxes. The application is free and takes under 15 minutes.

This article explains the exact IRS.gov process, what information you need to have ready, what comes after you receive your EIN, and the single most common mistake operators make with their EIN that creates accounting headaches later.

Table of Contents

1. What an EIN Is (and Isn't)
2. When You Need an EIN
3. Step-by-Step: IRS Online Application
4. After Your EIN: What to Do Next
5. Common EIN Mistakes
6. FAQ

What an EIN Is (and Isn't)

An EIN is a federal tax identifier issued by the IRS; it identifies your business entity on federal tax returns, payroll documents, banking forms, and vendor contracts.

What it is not:

• A business license
• A state tax registration (states issue their own tax IDs)
• A SAM.gov UEI (Unique Entity Identifier, required for federal contracting)
• An ITIN (Individual Taxpayer Identification Number)

Many operators confuse an EIN with a business license or assume that having an EIN means their business is "registered." An EIN addresses only federal tax identification. It does not replace state entity registration, local business licensing, or any other operating requirement.

When You Need an EIN

Required before:

• Opening a business bank account (virtually every bank requires it)
• Hiring any employees: W-2 or otherwise
• Setting up payroll processing with Gusto, ADP, QuickBooks Payroll, or any other provider
• Applying for workers compensation insurance (most carriers require it)
• Applying for janitorial bonds or commercial insurance in the business name
• Filing Form 1099s for independent contractors

Recommended even for solo sole proprietors: A sole proprietor with no employees can use their SSN on federal Schedule C. But using an SSN on vendor agreements, client contracts, and insurance applications exposes it to unnecessary risk. An EIN allows you to provide a tax identifier without sharing your personal SSN.

Step-by-Step: IRS Online Application

The online EIN application is available at IRS.gov Monday through Friday, 7 AM to 10 PM Eastern Time.

What you need before you start:

1. Your Social Security Number or ITIN (the "responsible party" for the business)
2. Legal business name exactly as it appears on your state formation documents
3. Business address (physical address, not P.O. box)
4. Entity type selection (sole proprietorship, single-member LLC, multi-member LLC, corporation, partnership)
5. Primary reason for applying (new business, hiring employees, opened bank account, etc.)

The application sequence:

Step 1: Choose entity type Select the entity that matches your state registration: for a single-member LLC, select "Limited Liability Company." For a sole proprietorship (no LLC), select "Sole Proprietor/Individual."

Step 2: Identify the responsible party The responsible party is the individual who controls, manages, or directs the business entity and the disposition of its funds. For a cleaning business owned by one person, this is you. You must provide your SSN or ITIN; this is the only point in the process where your SSN is required.

Step 3: Enter business information Legal name, trade name (DBA if different from legal name), business address, county, and state.

Step 4: Confirm the primary activity For janitorial and cleaning services, the appropriate category is "Other" under Services, or "Accommodation, Food Services, & Other Services" → "Services to Buildings and Dwellings." Your NAICS code is 561720.

Step 5: Review and submit The IRS application reviews your information and issues an EIN immediately upon confirmation. Download and save the confirmation letter (PDF); this is your official EIN confirmation. The IRS does not mail a separate physical letter by default for online applications.

After Your EIN: What to Do Next

Immediately:

• Save the EIN confirmation PDF in a secure location (cloud storage, password manager)
• Write the EIN on the header of your LLC operating agreement (if you have one)
• Use the EIN to open a business checking account: see the Business Bank Account guide

Within the first week:

• Register for state payroll tax withholding with your state revenue department (required before your first hire)
• Provide EIN to your insurance agent to get GL policy and bond in the business name
• Add EIN to vendor accounts, supply distributor accounts, and your IRS business account at IRS.gov

If you elect S-Corp status later: You'll use the same EIN. The S-Corp election (Form 2553) is a tax classification change, not a new entity: no new EIN is required.

Common EIN Mistakes

Mistake 1: Applying with your personal name instead of your LLC name If you've formed an LLC, the EIN must be applied for in the LLC's legal name, not your personal name. An EIN applied for in "John Smith" when your business is "Smith Commercial Cleaning LLC" creates a tax mismatch that causes problems with banking, 1099 filing, and payroll.

Mistake 2: Applying before your LLC is formed The IRS will issue an EIN in any name. If you apply before filing your LLC formation documents, you may end up with an EIN in a name that doesn't match your eventual entity name. Form the LLC first, then apply for the EIN.

Mistake 3: Losing the confirmation document The IRS does not maintain an easily searchable online EIN lookup for the responsible party. If you lose your EIN confirmation letter, you must call the IRS Business & Specialty Tax Line ([phone number removed]) to retrieve it: a process that typically takes 20–45 minutes of hold time.

Mistake 4: Using your EIN as a personal identifier An EIN identifies your business entity, not you personally. Do not use your EIN in place of your SSN on personal tax forms (1040), personal loan applications, or personal credit applications.