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How to apply for your EIN, what it unlocks, and a pre-payroll checklist for first-time employers.
“SurePayroll made my opening of a new medical service company payroll a breeze,” said customer Thomas in a Trustpilot review. “From inputting employee information, 401k, and automated deposits, I could not have imagined payroll being so easy and quick!”
What Successful First-Time Employers Know Before They Hire
One thing worth getting clear on before your first hire: your EIN is a federal tax ID. A state employer tax ID is a different registration entirely, issued by your There’s a specific point in building a small business when everything starts to feel real. Not when the idea clicks, not when you make your first sale. When the federal government officially recognizes you as an employer. Getting your new EIN is that moment. It’s nine digits and a confirmation letter your business needs, but what it represents is concrete: your business is on record, your role as an employer is established, and the next chapter has already begun.
This guide covers more than how to apply. You’ll find what to have ready before you open the Internal Revenue Service form, what your EIN unlocks for a business your size, and the steps that stand between getting your number and running your first payroll. The EIN is the starting line. Knowing what comes next is what puts you ahead of it.
What Is an EIN and Why Does It Matter Now?
An Employee Identification Number or EIN is a unique nine-digit number assigned by the IRS 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 number you need to get there.
Who Needs an EIN?
If you’re hiring your first employee, or you're a single-member LLC ready to formalize your business, the EIN comes before any of it: before your first offer letter, before your first payroll run, before you can legally bring anyone on. For S-Corp owners, it’s just as foundational: you 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 1099-NECs when you file taxes, you need it for that too.
The EIN is what every next step in your employer setup requires. Small businesses were responsible for 88.9% of net new jobs created between March 2023 and March 2024, according to the Bureau of Labor Statistics. 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.
You’re joining a significant wave of small business owners who have navigated this precise moment and come out the other side as employers.
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. Use your existing EIN for payroll.
You’ll need to apply for a new one if your business structure changed, such as you switched from a sole proprietorship to an LLC.
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.
What to Have Ready Before You Open the Form
The most important thing to know before you open the IRS application: you cannot save it and come back. The online tool expires after 15 minutes of inactivity with no way to resume. Open it when you’re ready to finish it in one sitting.
Here’s what to have on hand before you click:
- Legal business name (exactly as it’s registered)
- Business entity type (sole proprietor, LLC, S-Corp, partnership, etc.)
- Responsible party’s Social Security number or individual taxpayer ID
- Business address
- Reason for applying (hiring an employee, new business, banking requirement, etc.)
Getting the details right from the start matters.
Once you have your EIN, you’ll use it to file Form 941 (quarterly payroll taxes) and Form 940 (annual federal unemployment tax).
Applying Online: The Fast Path
Head to the IRS website to complete your EIN application online. 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, 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?
You’re not stuck. Call the IRS Business and Specialty Tax Line at 800-829-4933 (Monday through Friday, 7 a.m. to 7 p.m., your local time). After verifying your identity, they can provide your EIN over the phone or mail you a 147-C letter as written confirmation.
You can also find your EIN on previously filed federal tax returns, bank account documents, or prior W-2s or 1099s your business issued. Going forward, keep digital and physical copies of your CP-575 in a dedicated business documents folder.
If your business details change (address, legal name, or responsible party), a quick Form 8822-B filing keeps your records current and your IRS correspondence on track.
What Your EIN Means and What Comes Immediately After
Once you have your EIN, the infrastructure of your business starts coming together.
What Your EIN Unlocks for You and Your Business
You can open a business bank account, build business credit, apply for business loans, obtain business licenses and permits, bring on employees, file employer tax forms (Form 941, Form 940), and issue W-2s and 1099-NECs at year end.
Each one builds on the EIN. None of them work without it. Once you have your federal EIN and state employer ID in place, a payroll solution like SurePayroll® By Paychex can automate the payroll tax calculations, filings, and deposits — so you can focus on running your business.
What Successful First-Time Employers Know Before They Hire
One thing worth getting clear on before your first hire: your EIN is a federal tax ID. A state employer tax ID is a different registration entirely, issued by your state’s tax agency, not the IRS.
Most states require both before you can withhold state income taxes and process your first paycheck.
Getting your EIN is Step 1. Registering for your state employer tax ID is Step 2. Requirements vary by state, so check with your state tax agency once your federal EIN is confirmed. This is one of the most consequential things to know before your first hire.
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
Here’s the full sequence for a small business owner:
- 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. Research from EY found that the average business makes 15 payroll corrections per pay period at an average cost of $291 per error. You’re already ahead of that by getting the setup right from the start. The full list of payroll forms by employment stage is a useful next read 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 need to be accurate and on time every pay period and getting that right from the first run is what the right payroll solution is built for.
SurePayroll is built to help small businesses run payroll at this stage: enter your EIN, state ID, employee W-4s, and banking information, and every payroll tax calculation, filing, and deposit happens automatically. Payroll runs the way it should, every pay period, while you stay focused on the work that grows your business.
From EIN to First Payroll: What Comes Next
The confirmation letter is just paper until you take the next step. You now know what that step is, and the one after that, and what all of them are building toward. Your EIN is the federal government confirmation that your business is real, and your role as an employer has begun. What you do with it separates the paperwork from the payroll.
Now 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 whole process in your hands — and keeps it there every pay period after that.
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
