Do freelancers need an EIN?
By SoloWOS teamPublished
IN SHORT
Usually not. A sole proprietor or single-member LLC with no employees and no excise tax can use their Social Security number. You need an EIN once you hire employees, elect S corp status or form a multi-member LLC. Many freelancers get one anyway, free from the IRS, so their SSN doesn't sit in every client's files.
Prices and limits as of .
Key takeaways
- An EIN is a nine-digit federal tax ID for a business. The IRS issues it free on IRS.gov to businesses based in the US.
- A single-member LLC with no employees and no excise tax liability doesn't need an EIN, per the IRS, though a bank or state may ask for one.
- You need one to run payroll, including paying yourself a salary from an S corp, and for a partnership or corporation.
- On a W-9, a sole proprietor can give either an SSN or an EIN, so an EIN keeps your SSN out of client vendor files.
- Sites that charge for an EIN file the same free IRS form for you.
An employer identification number (EIN) is the business version of a Social Security number: nine digits the IRS uses to identify a business on tax forms. Despite the name, you don't need employees to get one. This post covers when it's required, when it's just useful, and how to get it. It's part of our business setup series.
When the IRS requires one
| Your situation | EIN required? | What to use otherwise |
|---|---|---|
| Sole proprietor, no employees | No | Your SSN |
| Single-member LLC, no employees, no excise tax | No (IRS) | Your SSN; the bank or state may still ask for an EIN |
| Any employees, including you on S corp payroll | Yes | n/a |
| LLC taxed as an S corp or corporation | Yes | n/a |
| Multi-member LLC or partnership | Yes | n/a |
| You file excise tax returns | Yes | n/a |
For a single-member LLC that hires, the IRS says the LLC must use its own name and EIN to report and pay employment taxes, even though its income still goes on your Schedule C. A sole proprietor needs only one EIN no matter how many businesses they run, according to the Form SS-4 instructions.
Why freelancers get one anyway
Clients ask for a Form W-9 before they pay you, and a sole proprietor can put either an SSN or an EIN on it. With an SSN, your Social Security number ends up in the vendor files, email inboxes and accounting software of every client you've ever had. An EIN takes its place on W-9s and on the 1099-NEC forms clients file once they pay you $2,000 or more in a year (the threshold for payments made after December 31, 2025). If you have a single-member LLC with default tax treatment, the IRS says the W-9 carries your own SSN or EIN, not an EIN issued to the LLC.
Some banks ask for an EIN to open a business account, especially for an LLC, and some state tax agencies require a federal EIN for state registrations. Getting one early also means your W-9 doesn't change if you hire someone later.
WORKED EXAMPLE
Example: a freelance illustrator with eight clients a year
Maya sends eight W-9s in 2026 and receives five 1099-NECs. Using her SSN, eight companies store it, plus whoever handles their books. With an EIN, those same forms carry a business number instead of her Social Security number, and she can print it on invoices too. It took one session on IRS.gov and cost $0. Her tax return doesn't change: the income still goes on her Schedule C under her name.
How to get one for free
- Go to the IRS's "Get an employer identification number" page on IRS.gov. The online application is free and is open to businesses whose principal place of business is in the US or a US territory.
- Have the responsible party's SSN or ITIN ready. That's you, as the owner.
- Choose sole proprietor, or LLC with one member, and follow the questions. Finish in one session; the application doesn't save partway and times out after 15 minutes of inactivity.
- Download the confirmation letter at the end and keep it with your tax records. You'll need the exact name and number for your bank and W-9.
The IRS warns that some websites charge to get an EIN, and some formation services include it in their packages (check what yours includes). Either way, they're filing the same free IRS application for you, so the fee only buys convenience.
When you need a new EIN
An EIN belongs to a specific business setup. According to the IRS, a sole proprietor needs a new one if they incorporate or take in partners, but not for changing the business name or moving. If you later form an LLC and elect S corp status, the LLC gets its own EIN for payroll and its own return. Check the IRS page on when to get a new EIN before reusing an old number, and send clients an updated W-9 whenever the number on it changes.
Where SoloWOS fits
SoloWOS doesn't apply for EINs or file 1099s. Once you have the number, you can put it on the invoices you send clients to pay by card instead of your SSN.
General information from IRS pages checked October 23, 2026, not tax advice. If you have employees, excise taxes or a multi-member LLC, read the IRS instructions for Form SS-4 or ask a CPA or enrolled agent.
Questions
Do I need an EIN as a sole proprietor with no employees?
No. You can use your Social Security number on W-9s and your tax return. You can still get an EIN for free if you'd rather not give clients your SSN or your bank asks for one.
Does a single-member LLC need an EIN?
Not for federal income tax if it has no employees and no excise tax liability, per the IRS. It needs one to run payroll, and many banks and some states ask for one anyway.
Is getting an EIN free?
Yes. The IRS issues EINs free through its online application on IRS.gov. Websites that charge are filing the same form on your behalf.
Should I put my SSN or EIN on a W-9?
A sole proprietor can use either. If you have an EIN, using it keeps your SSN out of client files. For a sole proprietorship or a disregarded single-member LLC, line 1 is your own legal name and the number is your own SSN or EIN, not the LLC's.
Sources
Facts checked against these sources on October 23, 2026. Rules and amounts change, so confirm them at the source before you file or sign.
We don't get paid by any brand on this page: no affiliate links, no sponsored placements.
- IRS: Get an employer identification number (free online application)
- IRS: Employer identification number
- IRS: Single member limited liability companies (when an SMLLC needs an EIN)
- IRS: Instructions for Form SS-4 (Rev. December 2025)
- IRS Publication 1635, Understanding Your EIN
- IRS: When to get a new EIN
- IRS: About Form W-9
- IRS: Form 1099-NEC and independent contractors (FAQ, $2,000 threshold for payments after December 31, 2025)
Last reviewed:
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