EIN for Sole Proprietors: When Freelancers Need One and How to Apply

At FreelanceAtlas, we help freelancers handle the tax paperwork that comes with getting paid. This guide covers when the IRS requires an employer identification number, when it is optional, how to apply free, how to recover a lost number and when you need a new one, with three templates you can copy. For the form your EIN usually goes on, read W-9 for Freelancers: How to Fill It Out and When a Client Can Ask, and for the structure decision behind it, read Sole Proprietor vs LLC for Freelancers: Which Business Structure Do You Actually Need?

This article is general information, not tax advice. IRS rules and online tools change, and whether you need an EIN depends on your entity type and on whether you have employees or a retirement plan, so confirm your own situation with a CPA or enrolled agent before you apply for, use or close an EIN.

What an EIN Is, and What It Does Not Change

The IRS instructions for Form SS-4 describe an EIN as “a 9-digit number (for example, 12-3456789)” that the IRS assigns to sole proprietors and business entities “for tax filing and reporting purposes.” Despite the name, you do not need to be an employer to get one. The same instructions say “An EIN is for use in connection with your business activities only,” so your personal Form 1040 still carries your Social Security number.

For a sole proprietor, an EIN changes the number on some forms and nothing else. The IRS sole proprietorship page still lists Schedule C for income tax and Schedule SE for self-employment tax. The EIN does not create a company or give you liability protection. The SS-4 instructions also say a sole proprietor “needs only one EIN, regardless of the number of businesses operated as a sole proprietorship or trade names under which a business operates.”

EIN for Sole Proprietors: When the IRS Requires One

The current Form SS-4 says in a footnote that “a sole proprietorship or self-employed farmer who establishes a qualified retirement plan” must have an EIN, and so must one that is required to file excise or employment tax returns. The IRS employer identification number page adds withholding on nonwage income paid to a nonresident alien. For a freelancer, the triggers are:

• You hire an employee. Wages bring employment tax returns such as Form 941 and Form 940. Paying another freelancer as a contractor is not hiring, but IRS rules decide which is which, covered in Independent Contractor vs Employee: How Classification Is Decided.
• You set up a qualified retirement plan. The IRS 401(k) plan overview says “A 401(k) plan is a qualified plan,” and its one-participant 401(k) page calls a solo 401(k) “a traditional 401(k) plan covering a business owner with no employees, or that person and his or her spouse.”
• You owe employment or excise taxes. Excise taxes are rare for service freelancers, but the rule applies if you have them.
• You withhold tax for a nonresident alien. This applies when you are the withholding agent on income, other than wages, paid to a nonresident alien.
• You stop being a sole proprietor. The IRS page says you need an EIN to operate a partnership or a corporation. Single-member LLCs are covered below.

The Internal Revenue Manual, the IRS staff guide, states the retirement rule in older terms: a Form 1040 filer who “has a Keogh plan” needs an EIN, and a Keogh plan is “a qualified pension plan maintained by self-employed individuals.” If none of these triggers apply, the IRS does not require an EIN.

The Retirement Plan Trigger Most Freelancers Miss

A sole proprietor with no employees can still need an EIN because of a retirement plan. For the employer line, the Instructions for Form 5500-EZ, the annual return for a one-participant plan, say: “Enter the employer’s nine-digit employer identification number (EIN). For example, 00-1234567. Do not enter a social security number (SSN). Employers without an EIN must apply for one as soon as possible.”

Those instructions also say you do not have to file Form 5500-EZ for the 2025 plan year if your one-participant plans hold $250,000 or less at the end of the plan year, unless it is the plan’s final year. The EIN question can come up earlier, when you open the account. The IRS manual notes that “A bank or financial institution will advise the taxpayer they must have an EIN to open a retirement account such as an Individual Retirement Account (IRA) or Keogh plan,” and tells staff that the sole proprietor EIN “should be used for all their sole proprietor business needs, including opening retirement accounts available to self-employed people.” For the plan choice itself, see Retirement Accounts for Freelancers: SEP IRA vs Solo 401(k) in 2026.

Single-Member LLCs: When the LLC Needs Its Own Number

The IRS single-member LLC page says that unless the LLC elects corporate treatment, it is a “disregarded entity,” and “the LLC’s activities should be reflected on its owner’s federal tax return.” For employment tax and certain excise taxes, though, “an LLC with only one member is still considered a separate entity.” The answer depends on what the LLC does:

• No employees and no excise tax. The IRS says this LLC “does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes.”
• Employees. For wages paid after January 1, 2009, “the single-member LLC is required to use its name and employer identification number (EIN) for reporting and payment of employment taxes.”
• Banking or state requirements. If the LLC “needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN.”

The page adds that “Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.” Either way, a client W-9 “should provide the owner’s SSN or EIN, not the LLC’s EIN.” The LLC’s own number is for payroll and banking. Our guide to a business bank account for freelancers covers what banks commonly ask an LLC to bring.

Form the LLC with your secretary of state before you apply. The IRS Get an EIN page warns: “If you don’t form your entity with the state first, your EIN application may be delayed.” That page also points LLC owners to FinCEN, whose beneficial ownership page says that under its August 11, 2026 final rule, “U.S. companies are exempt from the Beneficial Ownership Information (BOI) reporting requirements and therefore, are no longer required to file BOI reports.”

Can You Use Your Sole Proprietor EIN for Your LLC?

Sometimes. The IRS page on when you need a new EIN says an LLC owner does not need one if you “Use your sole proprietor EIN for your single-member LLC and don’t choose to be taxed as a corporation or an S corporation and don’t have employees or owe excise tax.” Hiring changes that: the same page says to get a new EIN if you “Own a single-member LLC and have to file excise or employment taxes.”

If the LLC already has its own EIN, a new tax status does not mean another number. The page says an LLC does not need a new EIN to “Change your tax election to a corporation or an S corporation,” a step covered in S Corp for Freelancers: When the Tax Savings Are Real. An LLC with two or more members is a partnership by default, according to the SS-4 instructions, and needs its own EIN.

Reasons to Get an EIN When the IRS Does Not Require One

The IRS EIN page says: “If you don’t need an EIN for federal tax purposes, you can still request one for banking or state tax purposes.” For a freelancer, the common reasons are:

• Keeping your Social Security number out of client files. The Form W-9 lets a sole proprietor “enter either your SSN or EIN,” and its identity theft section tells you to “Protect your SSN.” Every client that asks for a W-9 keeps a copy, and an EIN means those copies carry a business number.
• Banking under a business name. Banks set their own document rules, so ask yours whether it wants an EIN for an account in a trade name.
• IRS Business Tax Account access. The Business Tax Account page says a sole proprietor “must also have an employer identification number (EIN)” to register. The account shows your balance and payments online.
• Federal agency contracts. The Internal Revenue Manual lists “Operating as an independent contractor doing business with a federal agency” as a legitimate reason to request one.

The manual also draws a line: “Requesting an EIN for the sole reason of improving or restoring an individual’s credit or obtaining a loan is not a legitimate business purpose.” Treat any offer that pairs an EIN with a promise of fresh credit as a red flag.

What an Optional EIN Does Not Change

The W-9’s name and number chart says a sole proprietor “may use either your SSN or EIN (if you have one), but the IRS encourages you to use your SSN.” Either is valid if it matches the name on line 1, because a mismatch can trigger backup withholding of 24 percent of the payment. Give each client one number and note which client has which.

How to Apply for an EIN Online, Step by Step

The Get an EIN page says: “Use this tool to get an EIN directly from the IRS in minutes for free,” and “If it’s approved, we’ll issue your EIN immediately online.” You can use it if your business is based in the US or a US territory and you are the responsible party, or an authorized representative, with the responsible party’s SSN or ITIN.

1. Form your LLC first, if you are forming one. A sole proprietor has nothing to file with the state before applying.
2. Pick a time inside the service hours. In Eastern Time, the tool runs Monday to Friday from 6:00 a.m. to 1:00 a.m. the next day, Saturday from 6:00 a.m. to 9:00 p.m., and Sunday from 6:00 p.m. to 12:00 a.m.
3. Gather your answers. Have your legal name exactly as it appears on your Social Security card, any trade name, your mailing address and the date your business started. The Form SS-4 line instructions make a good worksheet.
4. Choose the right entity type. A freelancer with no LLC picks sole proprietor. A single-member LLC with default tax status is a disregarded entity.
5. Enter your name the IRS way. The EIN page says IRS systems allow only letters, numbers, hyphens and ampersands in business names, apostrophes are removed, and street addresses are limited to 35 characters.
6. Finish in one sitting. You cannot save the application, and it “expires after 15 minutes of inactivity, and you’ll need to start over.”
7. Save the confirmation. Print or save the EIN confirmation letter before you close the page.

The Get an EIN page also says “You can apply for only 1 EIN per responsible party per day,” and the SS-4 instructions apply that limit to online, phone, fax and mail requests.

Who Counts as the Responsible Party

For a sole proprietor, the responsible party is you. The IRS responsible parties page defines one as “someone who owns, controls or exercises effective control over a business, nonprofit or other legal entity and directly or indirectly manages its funds and assets,” and says “Your responsible party must be a person, not an entity.” A nominee, someone given limited authority during the entity’s formation, cannot fill the role: “Nominees can’t apply for an EIN and shouldn’t be listed on Form SS-4.” Report later changes of responsible party or address on Form 8822-B within 60 days.

Applying Without the Online Tool

• Fax. From the 50 states or the District of Columbia, fax Form SS-4 to 855-641-6935. The EIN page says the IRS will fax the number back “in about 4 business days.”
• Mail. Send Form SS-4 to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999, and expect the number in about 4 weeks.
• Outside the US. If your principal place of business is abroad, you cannot use the online tool. Call 267-941-1099, which is not toll free, Monday to Friday from 6 a.m. to 11 p.m. Eastern time, or fax Form SS-4 to 855-215-1627 from within the US or 304-707-9471 from outside it.

Paid EIN Websites: You Never Have to Pay

The Get an EIN page is direct: “Beware of websites that charge for an EIN. You never have to pay a fee for an EIN.” The IRS tool already issues the number immediately when an application is approved, so a paid service cannot beat it on speed, and to apply for you it needs your Social Security number. Before you type your Social Security number into any EIN form, check two things:

• The address ends in .gov. The SS-4 instructions send online applicants to IRS.gov/EIN. A .com or .org site is not the IRS, whatever its logo looks like.
• There is no payment screen. If the page asks for a card number, you are not on the IRS application.

If a nominee is listed on your application instead of the real responsible party, the responsible parties page says “You must correct the information and identify your responsible party,” and warns that listing a nominee “could disclose your information to an unauthorized person.” The fix goes on Form 8822-B. For other traps aimed at freelancers, see Freelance Job Scams: 9 Patterns to Spot Before You Lose Money.

Using Your New EIN, and Telling Clients

The IRS EIN page says you can use the number immediately for most business needs, such as opening a bank account or applying for business licenses. It says to wait up to 2 weeks before you e-file a return or make electronic tax deposits with it. If a return is due before the number arrives, write “Applied For” and the date you applied, and the SS-4 instructions add: “Don’t show your SSN as an EIN on returns.”

Do not lean on “Applied For” with clients. The W-9 gives a 60-day grace period only for certain investment payments, and says “The 60-day rule does not apply to other types of payments.” Finish the application before a client asks for your W-9.

Once you have the number, send each active client a new W-9. The form says “you must furnish a new Form W-9 if the name or TIN changes for the account.” A short note covers it:

Subject: Updated W-9 for [Your business name]

Hi [Client name],

I now have an employer identification number for my business, so I have attached an updated Form W-9. Please update your records and replace the copy that shows my Social Security number.

My legal name on line 1 is [your name as it appears on your tax return], and my business name on line 2 is [trade name, or blank]. Nothing else about how you pay me changes.

Could you pass the new form to whoever prepares your 1099s?

Thanks,
[Your name]

Lost Your EIN? How to Find It or Get Letter 147C

The IRS EIN page suggests checking the notice the IRS issued when you applied, the bank that holds your business account, agencies where you applied for state or local licenses, and past business tax returns. If that fails, call the Business and Specialty Tax Line at 800-829-4933, Monday to Friday from 7 a.m. to 7 p.m. local time, or Pacific time in Alaska and Hawaii. The IRS says “We’ll verify your identity and provide the number over the phone if you’re authorized to receive it.”

When a bank or agency wants written proof, the IRS lists three ways to confirm an EIN:

• An entity transcript, requested through the IRS business tax transcript service.
• A digital CP575 notice from Business Tax Account, which the IRS calls “a substitute for the CP575A-J notice series and Letter 147C.” Business Tax Account is not yet available for LLCs that file as sole proprietors on Schedule C or Schedule F.
• Letter 147C, EIN Previously Assigned, which you request by calling the Business and Specialty Tax Line.

Have your details ready before you call:

Hello, I am calling to confirm the EIN for my business and to request Letter 147C.

Legal name: [name exactly as it appeared on the EIN application]
Business type: [sole proprietor / single-member LLC]
Address on file: [address used on the application or your last business return]
My role: [owner and responsible party]

Can you tell me how the letter will be sent and when I should expect it?

When You Need a New EIN, and When You Do Not

An EIN follows the entity, not the work. The IRS new EIN page says a sole proprietor needs a new number in these cases:

• You incorporate. A corporation is a separate taxpayer with its own EIN.
• You form a partnership. Bringing in a co-owner creates a new entity.
• You declare bankruptcy. The IRS lists this as a reason for a new EIN.

You do not need a new EIN if you change your business name or locations, or if you own several businesses. A new responsible party or address keeps the same number and goes on Form 8822-B. The EIN page says “A business entity should have only one EIN,” and if you end up with two, the Business and Specialty Tax Line will tell you which to use. For LLCs, you need a new EIN if you “Terminate an existing LLC and form a new corporation or partnership,” but not to change the name or tax election.

Closing Down: The IRS Deactivates an EIN, It Never Cancels It

The IRS page for owners who no longer need an EIN says: “we can’t cancel it, but we can deactivate it.” It adds: “Once we assign an EIN to a business entity, it becomes that entity’s permanent federal taxpayer ID number.”

The IRS asks for a letter with your EIN, legal name and address, the EIN assignment notice if you have it, and your reason. If you made tax payments, owe business taxes or received a notice to file a business return, you must first “file all outstanding tax returns and pay taxes owed.” Mail it to Internal Revenue Service, MS 6055, Kansas City, MO 64108, or to Internal Revenue Service, MS 6273, Ogden, UT 84201.

[Date]

Internal Revenue Service
MS 6055
Kansas City, MO 64108

Re: Request to deactivate EIN [XX-XXXXXXX]

Legal name: [your full legal name, or the LLC’s legal name]
Address: [mailing address on file with the IRS]
EIN: [XX-XXXXXXX]

Please deactivate the EIN above. Reason: [for example, I closed my freelance business on (date) and no longer need the number]. I have filed all required returns for the business. A copy of the EIN assignment notice is enclosed [if available].

Signed,
[Your name], [owner or sole member]
[Phone number]

Conclusion

For most solo freelancers, an EIN is optional. The IRS requires one for a sole proprietor who hires employees, sponsors a qualified retirement plan such as a solo 401(k), owes employment or excise taxes, or withholds tax on payments to a nonresident alien, and it requires one for every partnership and corporation. A single-member LLC needs its own number once it has employees, and the IRS says most new ones will need an EIN anyway. Outside those cases, the main reason to apply is to keep your Social Security number off client W-9s.

If you decide to get one, apply on IRS.gov during the service hours and save the confirmation letter. Then send your active clients an updated W-9. If the letter goes missing, the Business and Specialty Tax Line at 800-829-4933 can confirm the number or send Letter 147C. When the business ends, a short letter asks the IRS to deactivate it.

Key Takeaways

• The IRS requires an EIN for a sole proprietor who hires employees, sponsors a qualified retirement plan, owes employment or excise taxes, or withholds tax on payments to a nonresident alien.
• A single-member LLC must use its own name and EIN for employment taxes, but its W-9 should show the owner’s SSN or EIN, not the LLC’s EIN.
• The free IRS online application runs Monday to Friday from 6:00 a.m. to 1:00 a.m. Eastern Time and expires after 15 minutes of inactivity.
• The IRS issues only 1 EIN per responsible party per day, and it warns that “You never have to pay a fee for an EIN.”
• A lost EIN can be confirmed through Letter 147C from the Business and Specialty Tax Line at 800-829-4933 or a digital CP575 notice in Business Tax Account.
• A sole proprietor needs a new EIN after incorporating or forming a partnership, and the IRS can only deactivate an old EIN, never cancel it.

Frequently Asked Questions

Do I need an EIN if I am a sole proprietor?

Only in specific cases. The IRS requires an EIN for a sole proprietor who has employees, sponsors a qualified retirement plan such as a solo 401(k), must file employment or excise tax returns, or withholds tax on certain payments to a nonresident alien. If none of these apply, you can use your Social Security number on federal forms, including Form W-9. You may still get an EIN for banking or privacy reasons, and it is free from IRS.gov.

Can I use the same EIN for my LLC and my sole proprietorship?

Sometimes. The IRS says you can keep using your sole proprietor EIN for a single-member LLC that is not taxed as a corporation or an S corporation and has no employees or excise tax. Once the LLC has employees, it must use its own name and EIN for employment taxes. A multi-member LLC is a partnership by default and needs its own number. Ask your bank which number it wants on an LLC account.

Should I get an EIN as a sole proprietor or as an LLC?

Apply for the structure you actually have, because the EIN follows the entity. A sole proprietor applies as an individual, and one EIN covers every business and trade name run as a sole proprietorship. An LLC should be formed with the state first and then apply in its own name, as a disregarded entity if it has one member. If you are still deciding on structure, settle that first, since incorporating or forming a partnership later requires a new EIN.

How do I get an EIN for a sole proprietorship?

Use the free online tool on IRS.gov. In Eastern Time, it is open Monday to Friday from 6:00 a.m. to 1:00 a.m. the next day, Saturday from 6:00 a.m. to 9:00 p.m., and Sunday from 6:00 p.m. to midnight. Choose sole proprietor as the entity type and enter your legal name as it appears on your Social Security card. The session expires after 15 minutes of inactivity. If approved, the IRS issues the number immediately, and you can also fax or mail Form SS-4.

What should I do if I lose my EIN?

Check the IRS notice you received when you applied, your business bank, any state or local licensing agency, and past business tax returns. If you still cannot find it, call the IRS Business and Specialty Tax Line at 800-829-4933, Monday to Friday from 7 a.m. to 7 p.m. local time. The IRS verifies your identity and can give an authorized person the number by phone. You can also ask for Letter 147C as written confirmation.