Can Individuals Apply for an EIN? (Freelancers & Sole Proprietors Explained)

Nov. 10, 2025, 3:31 p.m.
If you’re a freelancer, independent contractor, or sole proprietor in the United States, you’ve probably heard about the Employer Identification Number (EIN). It’s a nine-digit number issued by the Internal Revenue Service (IRS) to identify a business for tax purposes — but many individuals aren’t sure whether they actually need one. Let’s break down who needs an EIN, why it might be beneficial, and how to apply.
Individuals Apply for an EIN

What Is an EIN?

An Employer Identification Number (EIN) — sometimes called a Federal Tax Identification Number — is like a Social Security Number (SSN) for your business.

It’s used by the IRS to track business tax filings, and it’s often required for:

  • Hiring employees

  • Opening a business bank account

  • Filing business taxes

  • Applying for business credit or loans

Even if you’re an individual working on your own, you may still qualify for or benefit from having one.

Can Individuals Apply for an EIN?

Yes.
Individuals can apply for an EIN if they operate as sole proprietors, freelancers, or independent contractors — even if they don’t have employees.

The IRS allows individuals to obtain an EIN for business or tax-related purposes. This includes:

  • Self-employed workers filing taxes on business income

  • Individuals hiring household employees (like a nanny or caregiver)

  • Trustees of estates or administrators of trusts

  • People starting an LLC or other business entity

When Freelancers & Sole Proprietors Should Get an EIN

While not every sole proprietor is required to have an EIN, it can make managing your business easier and more professional. Here are key situations where getting one makes sense:

  1. You plan to hire employees.
    The IRS requires an EIN if you pay wages to one or more employees.

  2. You want to open a business bank account.
    Most banks won’t open a business account without an EIN, even for one-person businesses.

  3. You want to build business credit.
    Business credit reporting agencies (like Dun & Bradstreet) use your EIN as a business identifier.

  4. You want to keep your SSN private.
    Using your EIN on tax forms (like W-9s) helps protect your personal Social Security Number from overexposure.

  5. You form an LLC or corporation.
    The IRS automatically requires a separate EIN for any registered business entity.

When an Individual Does NOT Need an EIN

You don’t need an EIN if:

  • You are a sole proprietor with no employees and no excise or pension plan taxes.

  • You file taxes under your own name and Social Security Number.

In these cases, you can use your SSN for federal tax filings instead.

However, even in these scenarios, having an EIN can still be beneficial for privacy and professionalism.

Benefits of Having an EIN as a Freelancer or Sole Proprietor

  • Protect your identity by using your EIN instead of your SSN on tax forms.

  • Simplify tax filings by separating personal and business finances.

  • Build credibility with clients and vendors who prefer working with registered business entities.

  • Qualify for business loans, credit cards, and grants that require an EIN.

How to Apply for an EIN

Applying for an EIN is free and quick. You can do it directly through the IRS:

Steps:

  1. Visit the EIN application page:  https://www.einregister.online/

  2. Choose “Sole Proprietor” as your entity type (if applicable).

  3. Fill out the online form — you’ll need your name, address, and SSN or ITIN.

  4. Submit and receive your EIN immediately online in most cases.

You can also apply by  phone (502) 547-2551

Key Takeaway

Even though EINs are often associated with larger companies, individuals — including freelancers and sole proprietors — can and often should apply for one.

It’s a small step that provides big advantages in professionalism, privacy, and tax management.