Do I Need an EIN for My Side Business?

If you are starting a side business, freelance activity, creator business, Etsy shop, consulting practice, online store, or 1099 income stream, you may wonder whether you need an EIN.

An EIN, or Employer Identification Number, is a federal tax identification number issued by the IRS. It is used to identify a business, entity, estate, trust, or certain other taxpayer for federal tax filing and reporting purposes. It is sometimes described as a business tax ID number.

An EIN is not the same thing as forming an LLC. It is not a business license. It is not a state registration. It does not by itself create liability protection or change how your business is taxed. It is simply an IRS identification number used for tax administration and business reporting.

The short answer is: maybe. An EIN is required in some situations, optional in others, and practically useful even when not strictly required.

An EIN can help with payroll, business banking, LLC setup, platform onboarding, payment processors, tax filings, and separating business activity from personal activity. But not every small side business needs one immediately.

The main point is this: Do not get an EIN because a random website says every business must have one. But do not ignore the EIN question if you have an LLC, employees, platform requirements, business banking needs, or non-U.S. creator setup issues.

Start with our Business Setup and Tax Basics hub if you want the broader setup checklist.

Related guides and tools:

Quick answer

You may need or want an EIN depending on your business structure, whether you have employees, whether you formed an LLC, whether your bank or platform requires it, and whether you need to file certain federal tax forms.

Situation	EIN likely needed or useful?
Sole proprietor with no employees	Not always required
Sole proprietor hiring employees	Yes
Single-member LLC with no employees or excise tax	Not always required federally, but may still be useful
Multi-member LLC	Generally yes
Partnership	Generally yes
Corporation	Yes
Business bank account under business name	Often useful and may be required by the bank
Platform asks for business tax information	May be useful or required
Non-U.S. creator forming a U.S. LLC	Often important, but get advice
Non-U.S. creator using U.S. platforms or payment processors	May be useful depending on platform setup
You only changed your business name or address	No new EIN just for that change, but you may need to update IRS or other records

What is an EIN?

EIN stands for Employer Identification Number.

The IRS describes an EIN as a nine-digit number assigned to employers, sole proprietors, corporations, partnerships, estates, trusts, certain individuals, and other entities for tax filing and reporting purposes.

For a side business, an EIN may be used for payroll, federal tax filings, business bank accounts, payment processor setup, platform onboarding, and entity reporting. Whether you need one depends on your structure and facts.

EIN vs SSN vs ITIN

Identifier	What it usually identifies
SSN	A Social Security number for an individual
ITIN	An individual taxpayer identification number for certain people not eligible for an SSN
EIN	A federal tax ID number for a business, entity, estate, trust, or certain other tax purposes

A sole proprietor may sometimes use a Social Security number for federal tax purposes. But a business may need or want an EIN for employees, banking, platforms, tax reporting, privacy, or entity setup.

Confused about EIN vs ITIN?

An EIN is generally a business or entity tax identification number. An ITIN is an individual tax processing number for certain people who are not eligible for a Social Security number but need a U.S. taxpayer identification number for federal tax purposes.

If you are a non-U.S. creator trying to claim a refund of U.S. tax withheld, file a U.S. individual tax return, or provide an individual taxpayer ID for a valid tax reason, you may need to understand ITIN rules.

Do not apply for an EIN just because you personally need a U.S. tax number for an individual return or refund claim. That is usually an ITIN or SSN question, not an EIN question.

Read our guide: Who Needs an ITIN?

When an EIN is required

An EIN is commonly required when the business has employees, operates as a partnership or corporation, or must file certain federal tax returns.

The IRS Businesses with Employees page explains that if a person is classified as an employee, the business must have an EIN because employers have employment tax responsibilities.

You may also need an EIN for federal tax reasons if you have employees, operate as a partnership, operate as a corporation, have a multi-member LLC, your LLC has employees, your LLC must file certain excise tax forms, you make certain tax elections, or you create certain trusts or other entities.

Separately, an EIN may be useful for practical business reasons, such as opening a bank account, completing platform onboarding, working with a payment processor, or keeping business records separate.

Sole proprietor | Do you need an EIN?

A sole proprietor is someone who owns an unincorporated business by themselves. The IRS sole proprietorships page explains the basic structure.

If you are a sole proprietor with no employees and no special tax filing requirements, you may not need an EIN for federal tax purposes. Many sole proprietors can report business income on Schedule C using their personal tax identification number.

But an EIN may still be useful if a business bank account requires it, a payment processor asks for it, a platform asks for business tax information, the owner wants to avoid giving out a Social Security number in business settings, the business may hire employees later, or the owner wants cleaner business records.

Single-member LLC | Do you need an EIN?

This is where many people get confused.

A single-member LLC can be a state-law legal entity, but it may be disregarded from its owner for federal income tax purposes unless it elects another tax classification. For more LLC context, see Do I Need an LLC for My Side Business?.

The IRS LLC EIN FAQ says that if you are the sole owner of an LLC with no employees and no relevant excise tax obligations, you generally do not need a separate federal tax ID number for the LLC. However, if you want a separate federal tax ID number for your LLC, one may be assigned.

Single-member LLC situation	EIN answer
No employees, no excise tax, default disregarded entity	Not always required federally
Wants a separate business bank account	Often useful and may be required by bank
Platform or payment processor asks for business tax ID	May be useful or required
Has employees	EIN required
Files certain excise tax forms	EIN required
Elects corporate tax treatment	The entity generally needs an EIN for federal filings
Foreign-owned U.S. LLC	Often important; get qualified advice

Multi-member LLC | Do you need an EIN?

A multi-member LLC generally needs an EIN. A domestic LLC with more than one member is generally treated as a partnership for federal tax purposes unless it elects corporate treatment. Partnerships generally need EINs for tax filing and reporting.

If there is more than one owner, do not assume one owner’s SSN is enough. The LLC likely needs its own tax ID.

Do you need an EIN to open a business bank account?

The IRS does not control every bank’s account-opening rules.

Even if an EIN is not strictly required for federal tax purposes, a bank may require an EIN to open a business bank account, especially for an LLC, partnership, corporation, or business operating under a business name.

A business bank account can help separate business and personal money, track income, track expenses, create cleaner records, make tax filing easier, support LLC separation, present the business more professionally, and avoid mixing personal and business transactions.

Do you need an EIN for online platforms or payment processors?

Maybe.

Some platforms and payment processors may ask for tax identification information before paying you. The right form and number depend on whether you are operating as an individual, sole proprietor, single-member LLC, partnership, corporation, foreign individual, foreign entity, or foreign-owned U.S. LLC.

For U.S. creators and sellers, the platform may request W-9 information. For non-U.S. creators, the platform may request Form W-8BEN, Form W-8BEN-E, an EIN, an ITIN, or other tax information depending on the setup.

Do not assume the platform requirement is the same as the IRS requirement. A platform may require information for onboarding, payout, withholding, compliance, or account verification.

Non-U.S. creators and EINs

For non-U.S. creators, freelancers, consultants, and online sellers, an EIN may become relevant when U.S. platforms, payment processors, banks, or entity filings require business tax identification.

A non-U.S. creator may need or consider an EIN if they form a U.S. LLC, a platform requests business tax information, a payment processor requires a business tax ID, a U.S. bank account is being opened, a foreign-owned U.S. LLC has reporting obligations, a refund claim or U.S. filing requires identification, or a platform workflow requires entity information before releasing funds.

A non-U.S. creator generally should not assume the normal online EIN application is available. The IRS Get an Employer Identification Number page says the online EIN tool is for applicants whose principal place of business is in the U.S. or U.S. territories and that applicants with a principal place of business outside the U.S. should apply by phone, fax, or mail.

For the broader non-U.S. setup context, see U.S. Tax Setup for Non-U.S. Creators.

How a non-U.S. creator gets an EIN

A non-U.S. creator usually gets an EIN by completing IRS Form SS-4 and applying as an international applicant by phone, fax, or mail, depending on the situation.

Decide why the EIN is needed. For example: U.S. LLC setup, platform onboarding, business banking, payment processor setup, Form 5472 reporting, U.S. tax filing, refund claim, or entity identification.
Complete Form SS-4. Use the official IRS form. Do not pay a lookalike website unless you intentionally hire someone for broader professional help.
Identify the responsible party. The IRS responsible parties and nominees page says the responsible party is generally the person who owns, controls, or exercises effective control over the entity and manages its funds and assets.
If the foreign responsible party does not have an SSN or ITIN, review the Instructions for Form SS-4. The instructions explain how foreign applicants without an SSN or ITIN should complete the identifying-number field.
Submit the application using the international applicant process by phone, fax, or mail. The IRS instructions and Where to File Form SS-4 page list current filing options and addresses.

The IRS currently lists an international EIN phone number of 267-941-1099, Monday through Friday, 6 a.m. to 11 p.m. Eastern time. IRS fax numbers and addresses can change, so confirm the current Form SS-4 instructions before sending anything.

Non-U.S. creators may need help choosing the right setup

For a non-U.S. creator, the EIN question should not be treated in isolation.

An EIN may be one piece of a larger setup involving a U.S. LLC, platform onboarding, payment processors, W-8BEN or W-8BEN-E forms, withholding, tax treaty claims, Form 5472 reporting, possible refund claims, and state filing obligations.

Some non-U.S. creators can handle simple steps themselves, but many should consider getting help from a qualified U.S. tax adviser, cross-border tax preparer, CPA, Enrolled Agent, tax attorney, or experienced business formation adviser.

That help may be useful for deciding whether an EIN is actually needed, whether to operate as an individual, foreign entity, or U.S. LLC, whether a U.S. LLC helps with platform access or creates Form 5472 filing obligations, whether W-8BEN or W-8BEN-E is the right platform form, whether withholding can be reduced or avoided, whether a refund claim may be available, and whether state filing or sales tax issues apply.

Some advisers offer this kind of help at relatively modest cost, including through freelance platforms and online tax-preparation services. That can be useful if the creator is trying to complete platform onboarding and get paid. But the adviser should be vetted carefully and should understand cross-border U.S. tax issues, not just basic EIN applications.

Important warning for non-U.S. creators

Getting an EIN does not automatically mean the creator owes U.S. income tax. It also does not eliminate U.S. tax, withholding, or reporting issues.

For non-U.S. creators, the EIN is often only one piece of a larger setup involving W-8BEN or W-8BEN-E, platform withholding, treaty claims, U.S. LLC reporting, Form 5472 and pro forma Form 1120 if applicable, U.S.-source vs foreign-source income, payment processor requirements, possible refund claims, and state filing or registration issues.

The EIN question should be tied to the larger setup: why is the platform, bank, payment processor, or filing process asking for an EIN, and what other obligations come with that setup?

How to get an EIN from the IRS

The safest route is to use the official IRS EIN application process.

The IRS says you can get an EIN directly from the IRS for free. The IRS also warns that you never have to pay a fee for an EIN.

For applicants with a legal residence, principal place of business, or principal office or agency in the United States or U.S. territories, the IRS online EIN application may issue the EIN immediately if approved. International applicants generally use the phone, fax, or mail process described above.

Beware of paid EIN lookalike sites

This is a common mistake.

Some websites charge fees to obtain an EIN. Some are service providers. Others may look official but are not the IRS.

The IRS says you never have to pay a fee for an EIN.

That does not mean every paid service is a scam. Some people intentionally hire professionals to help with entity formation, foreign-owned LLC filings, cross-border tax setup, Form SS-4 preparation, or broader platform onboarding. But you should know what you are paying for.

What information do you need to apply for an EIN?

The exact application questions depend on the entity type, but you should generally be ready with the legal name of the business or owner, trade name if any, mailing address, responsible party information, type of entity, reason for applying, date business started or acquired, closing month of accounting year, number of expected employees if any, principal activity of the business, and contact information.

The IRS says an EIN application must name a responsible party. A responsible party is generally the person who owns, controls, or exercises effective control over the entity and manages its funds and assets. The responsible party must be a person, not an entity, except for government entities.

Keep EIN information current

Getting the EIN is not the end of the process.

The IRS Form SS-4 page says to keep Form SS-4 information current and use Form 8822-B to report changes to responsible party, address, or location. It also says changes in responsible parties must be reported to the IRS within 60 days.

Do you need a new EIN if your business changes?

Sometimes. The IRS When to Get a New EIN page explains that you generally need a new EIN when business ownership or structure changes. You do not need a new EIN just because you change your business name or address, but you may need to update IRS, state, bank, license, payroll, or platform records.

Change	New EIN?
Sole proprietor changes business name	No new EIN just for that change; records may need updates
Sole proprietor changes location or mailing address	No new EIN just for that change; records may need updates
Sole proprietor incorporates	Yes
Sole proprietor forms a partnership	Yes
Partnership becomes sole proprietorship	Yes
LLC changes only name, location, mailing address, or responsible party	No new EIN just for that change; IRS or state records may need updates
Single-member LLC adds employees or owes excise tax	EIN needed

EIN does not replace licenses, state registrations, or tax accounts

An EIN is only one setup step. Depending on your business, you may also need state business registration, LLC formation documents, sales tax registration, a local business license, payroll tax accounts, state unemployment insurance registration, a professional license, marketplace seller account, business bank account, insurance, or a bookkeeping system.

The SBA Launch Your Business guide is a useful starting point for non-tax startup steps.

EIN and estimated taxes

Getting an EIN does not eliminate estimated taxes or self-employment tax. If your side business earns income not covered by enough withholding, you may need to make estimated tax payments. That can include federal income tax and self-employment tax. For the payment-timing basics, see Quarterly Taxes for Freelancers and Side Businesses. For background, see Self-Employment Tax Explained.

Use the 2026 Quarterly Estimated Tax Calculator, 2026 Federal Income Tax Calculator, 2026 Estimated Tax Due Dates, and How to Pay 2026 Estimated Taxes Online.

Practical examples

Example 1 | W-2 employee testing a small side project

A W-2 employee earns a few hundred dollars from a low-risk side project and has no employees, no LLC, no business bank account, and no platform EIN requirement. An EIN may not be urgent. The first priorities may be tracking income, saving expense records, and estimating taxes.

Example 2 | Freelancer wants a business bank account

A freelancer has recurring clients and wants a separate business bank account. Even if an EIN is not strictly required for federal tax purposes, the bank may request one. Getting an EIN may help separate business and personal activity.

Example 3 | Single-member LLC with no employees

A person forms a single-member LLC for a consulting business. The LLC has no employees and no excise tax obligations. A separate EIN may not always be required federally, but it may still be useful for banking, contracts, payment processors, and business organization.

Example 4 | Etsy seller forms an LLC

An Etsy seller forms an LLC, opens a business bank account, tracks inventory and expenses, and wants better separation of business activity. An EIN may be useful or required by the bank or platform setup. The seller should also think about sales tax, income tax, records, and estimated payments.

Example 5 | Non-U.S. creator forms a U.S. LLC

A creator outside the United States forms a U.S. LLC to work with platforms or payment processors. An EIN may be important, but the creator should also understand W-8 forms, source-of-income rules, withholding, Form 5472, state obligations, and possible refund claims.

Example 6 | Non-U.S. creator needs platform onboarding help

A non-U.S. creator is trying to get paid by a U.S. platform. The platform asks for business tax information, and the creator is unsure whether to use individual information, a foreign entity, a U.S. LLC, an EIN, W-8BEN, or W-8BEN-E. This is not just an EIN question. The creator may need help choosing the right setup before submitting platform forms.

Common mistakes

Paying for an EIN without realizing the IRS issues EINs for free.
Thinking every side business automatically needs an EIN.
Thinking an EIN creates an LLC.
Thinking an EIN changes how your LLC is taxed.
Using an EIN to avoid good recordkeeping.
Forgetting to update the IRS after responsible party or address changes.
Getting multiple EINs for the same business without a reason.
Ignoring non-U.S. reporting issues.
Treating the EIN as the whole setup.
Hiring help without checking whether the adviser understands cross-border issues.

EIN checklist for side-business owners

Am I operating as an individual, sole proprietor, LLC, partnership, corporation, or foreign entity?
Do I have employees or expect to hire employees?
Did I form an LLC?
Is the LLC single-member or multi-member?
Does the business need a bank account?
Does a platform or payment processor require an EIN?
Do I need an EIN for state tax registration?
Am I applying through the official IRS process?
Who is the responsible party?
Do I need cross-border advice because I am outside the United States?
If I am a non-U.S. creator, do I understand whether I need an EIN, U.S. LLC, W-8BEN, W-8BEN-E, ITIN, or another setup?
Will I need to update the IRS later if the responsible party or address changes?

Bottom line

You do not automatically need an EIN just because you have a side business.

But an EIN may be required or useful depending on your structure, employees, LLC status, banking needs, platform requirements, tax filings, and whether you are a U.S. or non-U.S. business owner.

For a simple sole proprietor with no employees, an EIN may not be urgent. For an LLC, partnership, corporation, employer, platform-based business, or non-U.S. creator setup, the EIN question becomes more important.

For non-U.S. creators, an EIN can be important, but it should fit the broader setup. Before applying, consider whether the creator needs an EIN as an individual, for a foreign entity, for a U.S. LLC, for platform onboarding, for payment processing, or for U.S. reporting.

The safest approach is to understand why you need the EIN before applying, use the official IRS process, avoid paid lookalike sites, keep records, and update IRS information when required.

FAQ

Do I need an EIN for my side business?

Not always. A sole proprietor with no employees may not need an EIN immediately. But an EIN may be required or useful if you have employees, form an LLC, open a business bank account, use platforms or payment processors, or need business tax reporting.

Does a sole proprietor need an EIN?

A sole proprietor without employees may not need an EIN for federal tax purposes. But an EIN may still be useful for business banking, privacy, payment processors, or business organization.

Does a single-member LLC need an EIN?

Not always. The IRS says a sole owner of an LLC with no employees and no relevant excise tax obligations generally does not need a separate federal tax ID number, but one may be assigned if the owner wants one.

Does a multi-member LLC need an EIN?

Generally yes. A multi-member LLC is generally treated as a partnership for federal tax purposes unless it elects another classification, and partnerships generally need EINs.

Do I need an EIN if I hire employees?

Yes. The IRS says if a person is classified as an employee, the business must have an EIN.

Do I need an EIN for a business bank account?

Maybe. Even if the IRS does not require an EIN for your situation, a bank may require one to open a business bank account, especially for an LLC or business operating under a business name.

Do I need an EIN for Etsy, YouTube, AdSense, Fiverr, Upwork, or other platforms?

It depends on the platform and your setup. Some platforms may ask for tax identification information before paying you. U.S. individuals, U.S. businesses, foreign individuals, foreign entities, and U.S. LLCs may have different form and ID requirements.

Is an EIN free?

Yes. The IRS says you can get an EIN directly from the IRS for free and that you never have to pay a fee for an EIN.

Should I pay a website to get an EIN?

Usually not if all you need is a straightforward EIN. The IRS provides EINs for free. Some people intentionally pay professionals for entity formation, foreign-owned LLC setup, or cross-border tax help, but make sure you know what you are paying for.

How do I apply for an EIN?

Use the official IRS EIN application process. U.S. and U.S. territory applicants may often apply online. International applicants may apply by phone, fax, or mail depending on their situation.

How does a non-U.S. creator get an EIN?

A non-U.S. creator usually applies by completing IRS Form SS-4 and using the international applicant process by phone, fax, or mail, depending on the situation. The normal online EIN application may not be available if the applicant does not have a legal residence, principal place of business, or principal office in the United States or U.S. territories.

Should a non-U.S. creator get help before applying for an EIN?

Often, yes. The EIN may be only one part of a larger setup involving a U.S. LLC, platform tax forms, payment processors, withholding, treaty claims, Form 5472 reporting, and possible refund claims.

What is the responsible party for an EIN?

The responsible party is generally the person who owns, controls, or exercises effective control over the entity and manages its funds and assets. The IRS says the responsible party must be a person, not an entity, except for government entities.

Do I need a new EIN if I change my business name or address?

No. A business name or address change by itself is not a reason to get a new EIN. You may still need to update IRS, state, bank, license, payroll, or platform records. The IRS says Form 8822-B is used for certain business address, location, or responsible-party changes, and responsible-party changes must generally be reported within 60 days.

Does an EIN create an LLC?

No. An EIN is a federal tax identification number. An LLC is formed under state law.

Does an EIN change how my LLC is taxed?

No. An EIN by itself does not change your LLC’s federal tax classification. Tax treatment depends on ownership, default classification rules, and tax elections.

Can a non-U.S. creator get an EIN?

Possibly. A non-U.S. creator may need or want an EIN if they form a U.S. LLC, use certain platforms or payment processors, need a business tax ID, or have U.S. filing or reporting obligations.

Does getting an EIN mean I owe U.S. tax?

No. Getting an EIN does not automatically mean you owe U.S. tax. Tax liability depends on income type, source, tax residency, entity structure, U.S. trade or business analysis, treaty position, and other facts.

Official sources

Disclaimer

This article is for general informational purposes only and is not tax, legal, accounting, business formation, banking, platform onboarding, international tax, withholding, or professional advice. EIN requirements can depend on business structure, employees, tax elections, federal filings, state rules, banking requirements, platform requirements, ownership facts, and whether the person is a U.S. or non-U.S. creator. Non-U.S. creators and foreign-owned businesses may have additional U.S. tax identification, withholding, reporting, Form 5472, W-8 form, refund, and filing issues. Review official IRS guidance and consider speaking with a qualified tax professional before applying for an EIN or forming a business entity.