Glossary
What is EIN (Employer Identification Number)?
Definition
An Employer Identification Number (EIN) is a 9-digit tax ID the IRS issues to businesses. For sole proprietors it's optional — your SSN works for tax filing — but many freelancers get one to avoid putting their SSN on every client's W-9.
EINs are free from the IRS website (irs.gov/ein) and are issued instantly to US applicants. You don't need to form an LLC or register a business to get one.
Why it matters
- Every W-9 you give a client includes your tax ID. Using an EIN instead of your SSN limits identity-theft exposure across dozens of clients over a career.
- Some banks require an EIN to open a business checking account, even for sole proprietors.
- If you later hire employees or form an S-Corp/LLC, the EIN travels with the business.
Best practices for EIN
Get one even as a sole proprietor
Free, 5 minutes, eliminates the SSN-on-W-9 problem for the rest of your career. Request at irs.gov/ein directly (the IRS doesn't charge; avoid third-party services that charge fees).
Keep the EIN confirmation letter
The IRS mails a confirmation letter (CP 575). Banks and some clients want to see it. Scan and store it.
Update it when your business structure changes
Going from sole prop to LLC doesn't require a new EIN. Going to S-Corp or corporation does.
FAQ
Do I need an EIN to file Schedule C?
No. Sole proprietors can use SSN on Schedule C. EIN is a convenience, not a requirement.
Is my EIN public?
Somewhat. It appears on corporate filings, W-9s you hand to clients, and some public databases. Not as publicly searchable as a phone number, but not strictly confidential either.
Ready to keep SSN off W-9s?
Get an EIN at irs.gov/ein in 5 minutes, then use it on every client's W-9 going forward. Hustlay stores your business tax ID with your profile so every invoice you generate includes it automatically.