Example
“EIN 12-3456789” in the business details at the top of the invoice, beside your legal name and address. The format is always two digits, a hyphen, then seven.
Also called a federal tax ID or a taxpayer identification number.
What it means in practice
An EIN is issued by the IRS and free to apply for. Businesses with employees need one, and most clients will ask for it on a W-9 before they set you up as a vendor.
Sole proprietors can invoice under a Social Security number instead, but an EIN keeps that number off every document you send. Put it in your business block on the invoice if your clients expect it.
Where it shows up on the paperwork
It goes in your business block near your name and address, alongside your other details. A client asks for it on a W-9 before they set you up as a vendor.
What goes wrong
- Putting a Social Security number on invoices you send to strangers when an EIN would do.
- Getting an EIN and then never using it on your paperwork, which confuses clients matching you to their records.
- Paying a service for one. The IRS issues an EIN free.
Common questions
Do I need an EIN to invoice?
No. A sole proprietor can invoice under their own name and Social Security number. An EIN keeps that number off your documents and is required once you have employees.
Where does the EIN go on an invoice?
In your business details at the top, labeled as your tax ID. Some clients will not process a first payment without it on file.
What does an EIN look like?
Nine digits written as two, a hyphen, then seven: 12-3456789. The IRS assigns it once and it stays with the business.
How do I get an EIN?
Apply to the IRS, online on the IRS website or by filing Form SS-4. It is free, and an online application gives you the number at the end of the session. Sites that charge a fee are filing the same free form for you.
Is an EIN the same as a tax ID number?
An EIN is one kind of taxpayer identification number (TIN). A sole proprietor without one uses their Social Security number as their TIN instead, and on a Form W-9 either one goes in the TIN box.