EIN Requirements for Independent Contractors and Freelancers

Nov. 19, 2025, 6:37 p.m.
Independent contractors and freelancers play a major role in the U.S. workforce, and many wonder whether they need an Employer Identification Number (EIN) to operate legally. While not always EIN for Freelancers, having an EIN can simplify taxes, strengthen business credibility, and protect personal information. Below is a complete breakdown of when freelancers need an EIN, why it matters, and how to get one.
EIN for Freelancers

What Is an EIN?

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. It is used to identify businesses for tax purposes — similar to how a Social Security Number (SSN) identifies individuals.

Do Freelancers Need an EIN?

Freelancers do NOT always need an EIN. Many operate using their SSN when filing taxes.

However, you must or should get an EIN if any of the following apply:

You MUST Have an EIN If:

1. You Hire Employees

If you pay wages to other people, you need an EIN for payroll reporting.

2. You Form an LLC, Partnership, S-Corp, or Corporation

Certain business structures automatically require an EIN:

  • Multi-member LLCs

  • Partnerships

  • Corporations (C-corp or S-corp)

A single-member LLC may choose to use an SSN or obtain an EIN.

3. You Need to File Certain Federal Excise Taxes

If your work involves excise tax obligations (rare for freelancers), an EIN is required.

You SHOULD Consider Getting an EIN If:

Even if not required, freelancers benefit from having an EIN in many cases.

1. You Want to Protect Your SSN

Using an EIN helps minimize identity-theft risk when:

  • Sending W-9 forms

  • Completing vendor contracts

  • Working with large companies

2. You Want a Business Bank Account

Many banks require an EIN to open an account for:

  • Sole proprietors

  • LLCs

  • Freelancing businesses

3. You Want to Build Business Credit

An EIN is the first step in establishing:

  • Vendor credit

  • Business loans

  • Corporate credit lines

4. Your Clients Prefer or Require an EIN

Some corporations won’t pay freelancers unless they provide a tax ID that isn’t a Social Security Number.

How to Get an EIN as a Freelancer

The easiest way is the IRS online EIN assistant:

Steps:

  1. Visit the  https://www.einregister.online/

  2. Select Sole Proprietor or Single-Member LLC

  3. Enter your personal and business information

  4. Submit the application

  5. Receive your EIN instantly

Foreign freelancers without an SSN can also obtain an EIN by applying via phone  (502) 547-2551

Does Having an EIN Change How Freelancers Pay Taxes?

No.
Income still flows to your personal tax return (Form 1040) unless you elect a special business status like S-Corp.

The EIN simply becomes the tax ID used for business purposes, not your SSN.

Key Benefits of Having an EIN as a Freelancer

  • Protects your privacy

  • Helps open business banking accounts

  • Separates personal and business finances

  • Helps build business credit

  • Looks more professional to clients

  • Required for some business structures

Summary

You don’t always need an EIN as a freelancer — but most contractors benefit from having one. It's free, easy to obtain, and can protect your identity while helping you operate more professionally.