Hiring your first employee comes with a new set of tax and payroll responsibilities, and getting an Employer Identification Number (EIN) is an important early step. An EIN is the nine-digit federal tax identification number the IRS assigns to businesses and other entities. You’ll use it for federal tax reporting and, once you become an employer, applicable employment tax filings.
Before you apply, it helps to know what information the IRS form to request an employer identification number requires and what comes next. Here’s how to get your EIN and move from your application toward your first payroll.
SurePayroll® By Paychex is built for small businesses paying employees and contractors on one platform.
What is an EIN?
An EIN is a unique nine-digit number assigned by the Internal Revenue Service to businesses for tax filing, reporting, and identification purposes.
EIN, FEIN, TIN, tax identification number: why you’re seeing different names
If you’ve been researching this and keep running into different terms, you’re not missing something.
An EIN (Employer Identification Number) and a FEIN (Federal Employer Identification Number) are the same number; the Federal prefix is sometimes added for context.
TIN (Taxpayer Identification Number) is the IRS’s broader umbrella term that covers EINs, Social Security numbers, and other business tax IDs. Tax ID is an informal shorthand that typically means EIN in a business context. What you’re applying for is an EIN.
If you’re an S-corp owner working through how to pay yourself from your LLC, this is the identification number you need to get there.
Who needs an EIN?
When you hire employees, you'll generally need an EIN for employment tax reporting. A single-member LLC also needs an EIN if it has employees, although an LLC without employees may not need one for federal tax purposes.
If you're an S-corp owner active in your business, you’ll need an EIN to pay yourself a reasonable salary, file your own W-2, and run owner payroll through the business. And if you work with independent contractors and need to issue Form 1099-NECs when you file taxes, you need it for that too. Nonprofits need one as well, even before they apply for tax-exempt status.
The EIN is what every next step in your employer setup requires.
You’re joining a significant wave of small business owners who have navigated this precise moment and come out the other side as employers.
Americans filed a record 4.3 million business applications between January and August 2026 — a 13.5% increase over the same period the previous year, according to the U.S. Census Bureau.
And more are interested. In a SurePayroll survey, 52% of Americans believe starting a small business is more viable than seeking a traditional full-time job.
Do you already have an EIN?
If you already have an EIN for your business (for example, you set one up when you formed your LLC), you typically don't need a new one when you hire your first employee. You can usually use your existing EIN for payroll.
You may need a new EIN if your business ownership or business structure changes — for example, a sole proprietorship to an LLC, an LLC to a corporation, taking on partners, or going through bankruptcy. IRS requirements depend on the type of change, so check the IRS rules before applying for another EIN.
How to get your EIN
As a small business owner, you can apply for your EIN online, by fax, or by mail. Applying online is the fastest. Apply online directly here: https://sa.www4.irs.gov/applyein/.
What to have ready before you open the form
The most important thing to know before you open the IRS application (Form SS-4): you cannot save it and come back. The online tool expires after 15 minutes of inactivity, and you cannot resume. Open it when you’re ready to finish it in one sitting. The Internal Revenue Service only issues one EIN per responsible party per day, so if you’re applying for more than one entity, plan to space the applications out.
Here’s what to have on hand before you click:
- Legal business name (exactly as it’s registered — not a DBA or trade name)
- Business entity type (sole proprietor, LLC, corporation, S-corp, partnership, etc.)
- Responsible party’s Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Business address
- Reason for applying (hiring an employee, new business, banking requirement, etc.)
Getting the details right from the start matters.
Once you begin paying employees, you’ll also use your EIN number on applicable federal employment tax returns, which may include Form 941 for federal income tax withholding and Social Security and Medicare taxes and Form 940 for federal unemployment tax. These are the core employment tax filings every employer handles.
Applying online: the fast path
Head to the IRS website to complete your EIN application online at IRS.gov. It’s free, takes about 15 minutes when you’re prepared, and your EIN is issued immediately upon approval. Print your confirmation letter the moment it appears. That’s your CP-575, the IRS’s EIN Assignment Notice, and you’ll want it on file.
Other application methods
If online isn’t an option, fax your completed Form SS-4 (Application for Employer Identification Number) with a return fax number included and you’ll receive your EIN in approximately four business days.
Mail the same form and expect your EIN in about four weeks. If you’re an international applicant, call 267-941-1099. If timing matters for your business, the online application is the right call.
What if you lose your EIN confirmation letter?
If you need written confirmation of your EIN, you have several options. Eligible IRS Business Tax Account users can download a digital CP575, Employer Identification Number Verification Notice. The digital notice can be used in place of the original CP575 notice or Letter 147C. You can also request an Entity Transcript or IRS Business and Specialty Tax Line at 800-829-4933 (Monday through Friday, 7 a.m. to 7 p.m., your local time) to request Letter 147C, the IRS EIN Verification Letter.
If you simply need to find your EIN, check previously filed federal tax returns or other business records that show the number. Keep your EIN confirmation with your permanent business records once you have it.
If your business address, location, or responsible party changes, use IRS Form 8822-B, Change of Address or Responsible Party, Business, to update the IRS. You must report responsible party changes within 60 days.
What your EIN unlocks for you and your business
Once you have your EIN number, you'll use it across your business to hire employees as well as for federal tax reporting and many banking, business credit, and licensing activities. For employers, it also becomes a key identifier for payroll tax filings and year-end forms such as Form 941, Form 940, and W-2s and 1099-NECs..
You can use your EIN when you set a payroll account with a payroll service. A payroll solution like SurePayroll® By Paychex calculates, files, and deposits your payroll taxes on your schedule.
“SurePayroll made opening my new medical service company a breeze. From inputting employee information and automated deposits, I could not have imagined payroll being so easy and quick.”
Thomas, Trustpilot review
Your EIN isn't your state employer tax ID
Your EIN number is a federal tax ID. Depending on where you do business and have employees, you may also need separate state tax and employer registrations before you begin payroll.
Most states require both before you can legally run payroll and withhold state income taxes. A handful of states — including Texas, Florida, and Nevada — don’t levy a state income tax and may not require a separate state withholding registration.
Getting your EIN is Step 1.
Registering for your state employer tax ID is Step 2.
Depending on your state and your business, you may need state tax and employer registrations before you begin payroll.
Next steps before your first payroll
Your EIN is the foundation, but a few more pieces need to be in place before you can run your first payroll.
The pre-payroll checklist
Your pre-payroll checklist may include:
- EIN
- State employer tax ID (separate from your federal EIN)
- A completed Form W-4 from each employee
- Any required state withholding forms
- Employee banking information for direct deposit
- A pay schedule decision (weekly, biweekly, semi-monthly, or monthly)
Once these are in place, you’re ready to run. Industry benchmarks put the cost of a single manual payroll correction at roughly $180 to $339 once you count staff time, transaction fees, and follow-up, and each rework cycle typically consumes 2 to 8 hours of work across several people.
See a list of payroll forms by employment stage for more information as you head into your first payroll.
Setting up payroll
Once those pieces are in place, running payroll for a business your size is straightforward.
Federal and state tax deposits must be accurate and made by the applicable deadlines. Federal tax deposits generally must be made electronically through EFTPS, the Electronic Federal Tax Payment System, or other electronic payment methods.
SurePayroll is built to help small businesses run payroll at this stage: enter your EIN number, state ID, employee W-4s, and banking information, and SurePayroll calculates, files, and deposits your payroll taxes on that schedule, every pay period.
From EIN to first payroll: what comes next
With your EIN number in hand, you can move on to the other pieces you need for payroll. Complete the registrations that apply to your business, collect your employee information, and get your payroll process in place.
| Step | Action | Timing |
|---|---|---|
| Gather documents | Legal business name, entity type, SSN/ITIN, business address | Before you start |
| Apply for EIN | IRS online application (recommended) | 15 minutes |
| Receive EIN | Print CP-575 confirmation letter | Immediate (online) |
| Register for state employer tax ID | Varies by state | 1-3 business days |
| Collect employee W-4s | From each employee | Before first payroll |
| Set up payroll system | Enter EIN, state ID, employee info | 10-30 minutes |
| Run first payroll | Process payment + tax filings | Ongoing |
Put your EIN to work
You got the EIN, sorted the paperwork, and set yourself up as an employer. You're ready to run your first payroll.
SurePayroll puts the process in your hands and keeps it there every pay period.
This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up to date
