An EIN (Employer Identification Number) is your business's federal tax ID. Every Texas LLC, corporation, and most businesses with employees need one. Here is exactly how to get yours in under 10 minutes for free.
What Is an EIN and Do You Need One in Texas?
An EIN is a 9-digit federal tax identification number issued by the IRS. Think of it as your business's social security number. You need one if you:
- Formed a Texas LLC, corporation, partnership, or any other entity
- Have employees (W-2 or contract over certain thresholds)
- Open a business bank account in Texas
- File a Texas Sales and Use Tax Permit
- File business taxes federally
- Apply for business credit, loans, or licenses
Single-member LLCs technically can use the owner's SSN, but every bank and tax preparer will ask for an EIN. Just get one. It is free and instant.
How Much Does an EIN Cost in Texas?
Zero. The IRS does not charge for an EIN.
Watch out for third-party services advertising "EIN filing services" for $50 to $300. These are scams. They take the same form you can fill out for free at irs.gov, type your information into the IRS website, and pocket your money. Apply directly with the IRS for free.
Step-by-Step: Get Your Texas EIN in 10 Minutes
Step 1: File Your Texas LLC First
Get your EIN AFTER your Texas LLC is approved by the Secretary of State. Why? The EIN application asks for your legal business name, and you cannot use a name your LLC has not actually been approved for.
If you are operating as a sole proprietorship without an LLC, you can apply at any time using your personal name.
Texas LLC formation: file Form 205 at sos.state.tx.us, $300, 2-5 business days online.
Step 2: Visit the IRS EIN Application
Go to irs.gov and search "Apply for EIN online." Direct link: irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
Important: the online application is only available Monday through Friday, 7am to 10pm Eastern. If you are applying from Texas (Central Time), that is 6am to 9pm.
Step 3: Choose Your Business Type
The IRS will ask what type of entity you are applying for:
- Limited Liability Company (LLC): Most common for Texas founders
- Sole Proprietor: If you have no LLC
- Partnership: If you formed a Texas partnership
- Corporation: For S-Corps and C-Corps
- Estate, Trust, etc.: For non-business EINs
If you have a Texas LLC, select Limited Liability Company.
Step 4: Tell the IRS How Many Members
For a single-member LLC, enter 1. The IRS will treat your LLC as a "disregarded entity" for tax purposes, meaning you file business income on your personal Schedule C.
For a multi-member LLC, enter the number of members. The IRS will treat your LLC as a partnership unless you elect otherwise.
Step 5: Confirm State of Formation (Texas)
Select Texas. Confirm the LLC was formed in Texas (not registered as a foreign LLC from another state).
Step 6: Reason for Applying
Select "Started a new business" for most cases. Other options include hiring employees, opening a bank account, or compliance with IRS withholding regulations.
Step 7: Provide Responsible Party Information
The IRS asks for the "responsible party" — typically you, the owner. You will need to provide:
- Full legal name
- Social Security Number or ITIN
- Personal address (this is private; not part of the public EIN record)
Note: only US persons or US-based entities can be responsible parties on the online application. Non-US founders need to apply by phone or mail.
Step 8: Provide Business Information
- Legal business name (exactly as filed with the Texas Secretary of State)
- Trade name / DBA (if different)
- Business address (this can be a Texas address, your registered agent address, or your home address)
- County (Travis, Harris, Dallas, Tarrant, Bexar, etc.)
- Phone number
Step 9: Describe Your Business Activity
The IRS asks for a brief description of what your business does. Pick the closest match from their dropdown (retail, construction, food service, etc.) and add a 1-2 sentence description.
Examples:
- "Online retail of handmade jewelry"
- "Marketing consulting services for small businesses"
- "Residential cleaning services in the Dallas-Fort Worth area"
Step 10: Receive Your EIN Instantly
Submit the application. The IRS issues your EIN immediately and provides a PDF confirmation letter (Form CP575).
Save this PDF. You will need it to:
- Open a business bank account
- Apply for a Texas Sales and Use Tax Permit
- File taxes
- Apply for business loans or credit
The IRS will also mail you a paper copy within 4-6 weeks. The PDF you download is the same legal proof.
What to Do After Getting Your Texas EIN
Open a Business Bank Account
Take your EIN, Texas Certificate of Formation, and operating agreement to a bank. Best options for Texas businesses:
- Mercury (free, online, ideal for tech and ecommerce)
- Frost Bank (Texas-based, strong relationships)
- Bluevine (free with 2% APY)
- Chase Business Complete (good for cash-heavy businesses)
Apply for Texas Sales Tax Permit
If you sell taxable goods or services in Texas, register at comptroller.texas.gov. Free. Takes 2-3 weeks. Texas sales tax is 6.25% state plus up to 2% local.
File Required Annual Reports
Texas LLCs must file an annual Texas Franchise Tax Report. Most small businesses owe $0 (the "no tax due" report) since the threshold is $2.47M in revenue. But you must file or your LLC can be administratively dissolved.
Common EIN Mistakes Texas Founders Make
Paying for EIN services. Free at irs.gov. Always free. Anyone charging is a middleman.
Applying before your LLC is approved. The IRS will reject if your business name does not match what the Texas Secretary of State has on file.
Using the wrong responsible party. This must be a real person with their own SSN, not the LLC itself. The responsible party is who the IRS contacts about tax issues.
Losing the EIN confirmation letter. Save the PDF in multiple places. Banks will require it. Replacement requires calling the IRS and waiting on hold.
Misclassifying your business activity. Pick the closest match. Wrong classification can affect tax treatment and audit risk.
Frequently Asked Questions
How long does it take to get an EIN in Texas?
Online: instant. Phone: same day. Fax: 4 business days. Mail: 4 weeks.
Can I get an EIN before forming my Texas LLC?
You can, but the legal name on the EIN must match your LLC name exactly. Most founders form the LLC first, then immediately get the EIN.
Do single-member LLCs in Texas need an EIN?
Technically no, but every bank and tax preparer asks for one. Get one. It is free.
Can a non-US citizen get a Texas EIN?
Yes, but you cannot use the online application. You must apply by phone (267-941-1099) or by mail using Form SS-4. Processing takes 4-6 weeks.
What if I lose my EIN confirmation letter?
Call the IRS Business and Specialty Tax Line at 800-829-4933. They can fax or mail you a 147C letter, which is an EIN verification letter accepted by all banks.
Is my Texas EIN public information?
The number itself is not public, but it can be shared with banks, vendors, and government agencies. Your business name and EIN are not in any free public database.
Can I have more than one EIN for one business?
No. One business gets one EIN. Adding DBAs, opening multiple locations, or changing business names does not require a new EIN. Major structural changes (LLC to corporation) do require a new EIN.
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