TC business setup · EINDoes a transaction coordinator need an EIN?
An Employer Identification Number is the federal tax ID for a business. According to the IRS, you need one if you have employees, pay employment or certain excise taxes, or withhold tax on non-wage income paid to a nonresident alien – and to operate a partnership, a limited liability company, a corporation and some other entities. A TC working alone as a sole proprietor with no employees does not need an EIN for federal tax purposes, but the IRS says you can still request one for banking or state tax purposes. An EIN is free directly from the IRS, online in minutes or by fax with Form SS-4. If you are forming an LLC or other entity, register it with your state first and apply for the EIN after.
Who needs an EIN (irs.gov)
Employees
You have employees or pay employment taxes.
Entities
You operate a partnership, LLC, corporation, tax-exempt organization, estate or trust (with some exceptions).
Withholding
You withhold tax on non-wage income paid to a nonresident alien.
Optional
A sole proprietor without employees may still get one for banking or state tax purposes.
How to get it
- Form the LLC or other entity with your state first, then apply.
- Apply online at irs.gov – free, in minutes – or fax Form SS-4.
- Keep the IRS confirmation notice; the business name and address must follow the IRS rules.
Watch out
- Sites that charge for an EIN: the IRS gives it free.
- An EIN is not a license – a TC's licensing depends on the state and the work done.
- Some entities may also have beneficial ownership reporting to FinCEN – the IRS page points to FinCEN to check.
Questions TCs ask
Do I need an EIN as a 1099 transaction coordinator?
Not if you are a sole proprietor with no employees, for federal tax purposes; you may still get one free for banking or state tax purposes (irs.gov).
Does an LLC need an EIN?
The IRS lists limited liability companies among the entities that need an EIN to operate; form the LLC with the state first.
How much does an EIN cost?
Nothing – the IRS issues it free, online in minutes or by fax with Form SS-4.
Related guides
Put your business name and payment details in ClosingCode once – every invoice you send uses them.
Start free trialSource: irs.gov "Employer identification number" (page updated October 16, 2026; read October 25, 2026).
General information, not tax or legal advice. ClosingCode is software; it is not a tax preparer, CPA or law firm. State rules on taxes and worker classification can differ. This guide is not a substitute for the advice or services of an attorney.