What an EIN is
An EIN (Employer Identification Number) is a free ID number the IRS gives a business, similar in idea to a Social Security number but for a business. You typically need one if you hire employees, form certain structures like most LLCs or corporations, or if a bank requires one to open a business account. A sole proprietor with no employees can sometimes use their Social Security number instead, but many choose to get an EIN anyway to keep business and personal identification separate.
Applying is always free
You apply for an EIN directly and for free at irs.gov. There is no legitimate reason to pay a third-party website for this — those sites are simply charging for a form the government gives away at no cost. If a site asks you to pay for an EIN, close it and go to irs.gov instead.
State and local registration
Beyond the EIN, many businesses also register with their state (for example, forming an LLC with the Ohio Secretary of State) and may need to file a DBA, short for 'doing business as,' also called a trade name — this lets you operate under a name different from your own legal name or your entity's registered name, without creating a new legal structure. Requirements and fees vary by state and by what you're forming, so check your state's official site directly.
Spotting look-alike sites
Scam and middleman sites are often designed to look official, sometimes buying ads that appear above real government results in search engines. Always check that you're on a .gov site (like irs.gov or your state's official domain) before entering any information, and never enter your Social Security number, EIN, or bank details into this app or an unfamiliar site.
A real-world example
A braider forming an LLC in Ohio would file formation paperwork with the Ohio Secretary of State, then apply separately and for free on irs.gov for an EIN once the LLC exists. If she wants her shop to operate as 'Crown Braids' instead of her own legal name, she'd check whether her state requires a DBA/trade name filing for that.
Steps to take
- Decide whether you likely need an EIN (employees, most LLCs/corporations, or your bank requires one).
- If you need one, apply only at irs.gov — it's free and usually takes a few minutes.
- Check your state's official site for entity registration and any DBA/trade name filing you might need.
- Save copies of official confirmations somewhere secure outside this app.
- Set a reminder for any renewal or annual report deadlines your state requires.
Registration check
This checklist is optional and not saved. Copy it to keep a personal note. Do not enter sensitive information.
Go deeper in related modules
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