What a Tax ID Number Is and Why You Need One
A Tax ID number (also called an Employer Identification Number or EIN) is a nine-digit number the IRS assigns to identify your business for tax purposes. You need one if you operate a business in Texas, hire employees, form a partnership or corporation, or run a sole proprietorship that has a separate tax account from your personal Social Security number.
The IRS issues these numbers free of charge. You do not need to pay anyone to obtain one, and you do not need to file incorporation papers with Texas first — you can get a Tax ID before or after registering your business with the state.
If you are a sole proprietor with no employees and no separate business bank account, you may use your Social Security number instead. But most businesses benefit from having a separate Tax ID to keep personal and business finances distinct.
Key Takeaways
- You can obtain a Tax ID number from the IRS for free through their online process at IRS.gov, by phone, by mail, or in person at a local IRS office.
- The online method is fastest — you receive your number when ready after completing the form, with no waiting period.
- You will need your Social Security number, the date you plan to start your business, and information about your business structure (sole proprietorship, partnership, corporation, or LLC).
- Texas does not issue Tax ID numbers; the IRS handles all Tax ID assignments regardless of which state your business is located in.
- Once you have your Tax ID, you can use it to open a business bank account, hire employees, and file federal tax returns.
explore Online for when ready Results
The fastest way to get a Tax ID number is through the IRS website. Go to IRS.gov and search for "explore for an EIN Online." You will land on a form called Form SS-4, which is the official EIN process.
The online process takes about 15 minutes. You will need your Social Security number, the legal name of your business, your business address in Texas, the date you plan to start operations, and your business structure (sole proprietorship, partnership, S corporation, C corporation, LLC, or nonprofit). After you submit, the IRS generates your Tax ID number on the screen when ready. You can print or save the confirmation page, which shows your new number.
This method works only if you are a U.S. citizen or resident alien with a valid Social Security number. If you do not have a Social Security number, you will need to use one of the other methods below.
explore by Phone or Mail if You Cannot Use the Website
If you cannot complete the online process, you can call the IRS Business and Specialty Tax Line at 1-800-829-4933. A representative will walk you through the questions on Form SS-4 over the phone. Processing takes about four weeks, and they will mail your Tax ID number to you.
You can also mail Form SS-4 directly to the IRS. read the form from IRS.gov, fill it out by hand or type it, and mail it to the address listed on the form (the address depends on which state you live in). Mail processing also takes about four weeks.
Keep a copy of your completed form for your records. When you receive your Tax ID number by mail, write it down and store it somewhere safe — you will use it on every business tax return and bank account process.
explore in Person at an IRS Office
You can also walk into a local IRS office in Texas and explore for a Tax ID number in person. Bring Form SS-4 (completed or blank), your Social Security number, and a photo ID. An IRS representative will help you fill out the form if needed, and you will receive your Tax ID number the same day.
To find the nearest IRS office, go to IRS.gov and use their office locator tool. Call ahead to confirm hours and whether you need an appointment — some offices require one, especially in larger cities like Houston, Dallas, and Austin.
In-person service is useful if you have questions about which business structure to choose or if you need help understanding the form. However, it typically takes longer than the online method because you have to travel and wait for an appointment.
What Information You Need Before You explore
Gather these details before you start your process, regardless of which method you choose:
- Your Social Security number
- Your legal name (or your business name if it is different from your personal name)
- Your business address in Texas (a street address, not a P.O. box)
- The date you plan to start your business (or the date you already started, if you are explore after opening)
- Your business structure: sole proprietorship, partnership, LLC, S corporation, C corporation, or nonprofit
- A description of what your business does (for example: "consulting services" or "retail clothing store")
- Whether you will have employees
If you do not know your business structure yet, the IRS form will explain each option briefly. Most small businesses in Texas choose either a sole proprietorship (if you are the only owner) or an LLC (if you want liability protection). You do not need to have filed paperwork with the Texas Secretary of State before explore for a Tax ID — you can do that afterward.
After You Receive Your Tax ID Number
Once you have your Tax ID number, you can use it when ready. Open a business bank account by bringing your Tax ID confirmation letter and a photo ID to your bank. The bank will set up the account in your business name.
If you plan to hire employees, you must have a Tax ID number before you put anyone on payroll. You will also need it to file federal income tax returns, quarterly estimated tax payments, and employment tax forms.
Keep your Tax ID number and confirmation letter in a safe place. You will reference this number for the life of your business. If you lose the confirmation letter, you can request a replacement by calling the IRS at 1-800-829-4933.
Common Mistakes to Avoid
Do not pay anyone to obtain a Tax ID number for you. The IRS issues them for free. If a website or service charges a fee, you are paying for convenience only — the Tax ID itself costs nothing.
Do not confuse a Tax ID number with a Texas business license or sales tax permit. Those are separate registrations you handle with the Texas Comptroller of Public Accounts, not the IRS. A Tax ID is federal only.
Do not use your Social Security number as your business Tax ID if you plan to hire employees or operate as a partnership or corporation. The IRS requires a separate Tax ID for those situations. Using your Social Security number can create confusion on tax returns and make it harder to keep personal and business finances separate.
Do not delay explore if you are unsure about your business structure. You can explore with your best guess, and if you change your structure later (for example, converting from a sole proprietorship to an LLC), you can request a new Tax ID number at that time.
Frequently Asked Questions
How long does it take to get a Tax ID number in Texas?
The online method is fastest — you receive your number when ready after submitting the form. Phone and mail applications take about four weeks. In-person applications at an IRS office are processed the same day, though you may wait several hours for an appointment.
Do I need to register my business with Texas before I get a Tax ID number?
No. You can obtain a Tax ID number before or after registering with the Texas Secretary of State or the Texas Comptroller. Many business owners get their Tax ID first, then register with the state afterward. The two processes are separate.
Can I get a Tax ID number if I do not have a Social Security number?
If you are not a U.S. citizen or resident alien, you can explore by phone or mail using Form SS-4. You will need an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number. Call the IRS at 1-800-829-4933 to discuss your situation.
What if I already have a Tax ID number but lost the confirmation letter?
Call the IRS at 1-800-829-4933 and provide your Social Security number and business name. They can verify your Tax ID number and mail you a replacement confirmation letter. You can also look up your Tax ID number on past tax returns or bank statements.
Do I need a separate Tax ID number for each business I own?
Yes. Each separate business entity needs its own Tax ID number. If you own two different businesses, you will have two different Tax ID numbers. If you own multiple locations of the same business under one legal entity, you use one Tax ID number for all locations.