Most freelancers don’t need an EIN. The Schedule C instructions say a sole proprietor needs an EIN only if they have a qualified retirement plan, must file employment, excise, alcohol, tobacco or firearms returns, or pay gambling winnings. You need one the day you hire an employee, set up a qualified retirement plan like a Solo 401(k), or have to file certain employment or excise returns. If you decide to get one, it’s free from the IRS and takes minutes.
The question gets tangled because paid websites sell EINs as if they were a requirement, and clients ask for a “tax ID” without saying which number they mean. This guide separates the cases, shows what to put on a W-9, and explains how to apply without paying anyone. It’s mainly about sole proprietors. The IRS lists LLCs, partnerships and corporations among the entities that need an EIN to operate, so if you’ve formed one, read the LLC section below and the LLC vs. sole proprietorship guide.
When you need one and when you don’t
| Situation | EIN needed? | What the IRS says |
|---|---|---|
| Freelancing alone, no employees, no plan | No | Schedule C instructions: you need an EIN only with a qualified retirement plan, employment or excise returns, or gambling winnings |
| You hire an employee | Yes | Generally you need an EIN to hire employees |
| You file employment or excise returns | Yes | Schedule C instructions list employment, excise, alcohol, tobacco or firearms returns |
| You set up a qualified retirement plan | Yes | Schedule C instructions say a qualified plan requires one |
| A client asks for your tax ID | No | A sole proprietor with an EIN may enter either the SSN or the EIN on a W-9 |
| Single-member LLC with no employees or excise taxes | Usually no | A disregarded single-member LLC reports on the owner's return and may give the owner's SSN on a W-9; it needs its own EIN for employment or excise taxes |
Freelancing alone, no employees, no plan
- EIN needed?
- No
- What the IRS says
- Schedule C instructions: you need an EIN only with a qualified retirement plan, employment or excise returns, or gambling winnings
You hire an employee
- EIN needed?
- Yes
- What the IRS says
- Generally you need an EIN to hire employees
You file employment or excise returns
- EIN needed?
- Yes
- What the IRS says
- Schedule C instructions list employment, excise, alcohol, tobacco or firearms returns
You set up a qualified retirement plan
- EIN needed?
- Yes
- What the IRS says
- Schedule C instructions say a qualified plan requires one
A client asks for your tax ID
- EIN needed?
- No
- What the IRS says
- A sole proprietor with an EIN may enter either the SSN or the EIN on a W-9
Single-member LLC with no employees or excise taxes
- EIN needed?
- Usually no
- What the IRS says
- A disregarded single-member LLC reports on the owner's return and may give the owner's SSN on a W-9; it needs its own EIN for employment or excise taxes
Sources: IRS Schedule C instructions; IRS Instructions for Form SS-4; Form W-9; IRS employer identification number page. Opened October 14, 2026.
The retirement plan case catches the most freelancers. A Solo 401(k) is a qualified plan, so the IRS requires the employer’s EIN on its paperwork, and our guide on whether you need an EIN for a Solo 401(k) goes through that in detail, including the extra EIN some providers ask for.
Why you might get one anyway
The usual reason isn’t tax law, it’s what you hand to clients. Every client who pays you $2,000 or more in 2026 needs a taxpayer identification number to report it, and that comes from the W-9 you give them. The IRS’s W-9 says that if you’re a sole proprietor and you have an EIN, you may enter either your Social Security number or your EIN. With an EIN you can give clients that number and keep your SSN off the paperwork you send to people you’ve just met. The 1099-NEC vs. 1099-K guide explains who sends what.
Nothing else changes. You still report income on Schedule C and pay self-employment tax, and Schedule C asks for an EIN only in the cases in the table. If you have none, you leave the line blank.
What to put on a W-9
Form W-9 tells a sole proprietor to enter their individual name as shown on Form 1040 on line 1, and any business or “doing business as” name on line 2. For the number, the form says for individuals it’s generally your SSN, and that a sole proprietor with an EIN may enter either one. If you’re a single-member LLC that is disregarded as separate from its owner, you enter the owner’s SSN, or the owner’s EIN if the owner has one. If the LLC has elected to be taxed as a corporation or partnership, it uses its own EIN.
Whichever number you give has to match the name on line 1, because the W-9 says the number must match to avoid backup withholding. The IRS instructions for requesters put that rate at 24% and say a payer must withhold when a payee fails to furnish a taxpayer identification number. So give every client the same number, and tell them if it changes.
How to get an EIN
Apply directly at IRS.gov. The IRS says the online tool gets you an EIN in minutes, for free, and issues it immediately if approved. A few limits from the IRS page:
- The online tool is for U.S.-based applicants whose principal place of business is in the U.S. or its territories.
- You can apply for only one EIN per responsible party per day.
- The tool runs on set hours, Eastern time: Monday to Friday from 6 a.m. to 1 a.m. the next day, Saturday from 6 a.m. to 9 p.m., and Sunday from 6 p.m. to midnight.
The IRS also warns to beware of websites that charge for an EIN. Those sites aren’t the IRS, and you don’t need them.
Watch out
A sole proprietor needs only one EIN, even with several businesses or trade names. The Form SS-4 instructions say a sole proprietor generally files only one Form SS-4 and uses the same EIN for every business it runs.
If you formed an LLC
An LLC is a state-law structure, and the IRS decides how to tax it. The IRS says a domestic LLC with at least two members is classified as a partnership unless it files Form 8832 and elects to be treated as a corporation, and an LLC with one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and elects corporate treatment. For a freelancer with a single-member LLC that means the income still goes on Schedule C. What the IRS says about the number is different, though: its EIN page lists a limited liability company among the entities that need an EIN to operate. The IRS also says that if you don’t need an EIN for federal tax purposes you can still request one for banking or state tax purposes.
That doesn’t change the W-9. Form W-9 tells a single-member LLC that is disregarded to enter the owner’s SSN, or the owner’s EIN if the owner has one, and an LLC taxed as a corporation or partnership uses its own EIN. A related point from the IRS’s “new EIN” page: a single-member LLC that has to file excise or employment taxes needs its own EIN, and an LLC that changes its tax election to a corporation or an S corporation doesn’t need a new one. Our paying yourself guide covers when an S corporation election makes sense.
Applying, step by step
- Form the entity first. If you’re creating an LLC, partnership or corporation, the IRS says to register it with your state before you apply. A sole proprietor has no entity to form first.
- Use the name on your formation documents. The IRS says to enter your business name as it appears there, and its systems allow only letters, numbers, hyphens and ampersands in names. Symbols are spelled out or replaced with a space, slashes become hyphens and apostrophes are removed. Street addresses are limited to 35 characters.
- Name the responsible party. The application needs the person in charge of the entity and its assets, with a name, an SSN, ITIN or EIN, and a signature. The IRS says nominees aren’t authorized to apply, and that a nominee who does puts the entity’s information and privacy at risk.
- Choose how to apply. Online is free and immediate, and you complete it in one session: the IRS says it expires after 15 minutes of inactivity and you’d start over, and it asks you to print the confirmation letter for your records. If your principal place of business is in the U.S. you can also fax Form SS-4 to 855-641-6935, and the IRS faxes back a cover sheet with the EIN in about 4 business days if you gave a fax number, or mail the form to the Cincinnati address on the IRS page for an EIN in approximately 4 weeks. Only one EIN can be requested per day by any method.
When you can use it
The IRS says you can use your EIN right away for most business needs, such as opening a bank account, applying for business licenses and filing a tax return by mail. For three things you may have to wait up to 2 weeks: passing the IRS TIN Matching Program, e-filing a tax return, and making tax deposits and electronic payments. If a return is due before the number arrives, the IRS says to write “Applied For” and the date you applied in the space for the number.
If you can’t find your EIN
You don’t apply again. The IRS gives these steps: look for the notice it issued when you applied, contact the bank that has your business account, check with agencies where you applied for state or local licenses, and look at past business tax returns. If you still can’t find it, call the business and specialty tax line at 800-829-4933, Monday to Friday, 7 a.m. to 7 p.m. local time. The IRS verifies your identity and gives you the number by phone if you’re authorized to receive it. To confirm an EIN in writing, the IRS lists three ways: an entity transcript, a digital CP575 from a Business Tax Account for eligible users, or Letter 147C, EIN Previously Assigned, which you request by calling the same line. A business entity should have only one EIN, and if you have two and aren’t sure which to use, the same number can tell you.
When you do and don’t need a new one
The IRS says you need a new EIN, in general, when you change your entity’s ownership or structure, and you don’t need one just to change your business name, address or responsible party. For sole proprietors it lists three triggers: you incorporate, you form a partnership, or you declare bankruptcy. You don’t need a new one if you change your business name or location or own multiple businesses. If you stop needing an EIN, the IRS says it can’t cancel it but can deactivate it.
After you have it
Keep the confirmation letter where you keep your tax records. Give the new number to clients on a new W-9 and to your Solo 401(k) provider if you’re opening a plan, since the step-by-step guide to opening a Solo 401(k) asks for it early. Our first-time filing guide covers the return itself.
How we got these rules
The cases where a sole proprietor needs an EIN come from the IRS Schedule C instructions and the Form SS-4 instructions, and the single EIN per sole proprietor from the Form SS-4 instructions. The W-9 name and number rules come from Form W-9, and the backup withholding rate from the IRS instructions for the requester. The free online application, hours, eligibility, one-a-day limit and the warning about paid sites come from the IRS page on getting an EIN. We opened them on October 14, 2026. For how we choose sources, see How We Research.
This is general information, not tax or legal advice. Whether you need an EIN depends on your structure and what you do, so confirm with a tax professional if you’re unsure, especially if you plan to hire or form a company.
