Yes, most Texas business grant, loan, and incentive programs require an Employer Identification Number (EIN), also known as a Federal Tax Identification Number. The good news is that getting an EIN is completely free, takes only minutes through the IRS website, and there is no reason to delay. If you are planning to apply for any business program, get your EIN first.
What Is an EIN?
An EIN is a nine-digit number assigned by the IRS to identify your business for tax purposes. It functions like a Social Security number for your business. Even sole proprietors who could use their Social Security number should consider getting an EIN to separate personal and business identification and to meet program application requirements.
Programs That Require an EIN
Virtually All Programs
SBA loans, SBIR/STTR grants, USDA programs, Skills Development Fund, HUB certification, 8(a) certification, Chapter 380 agreements, property tax abatements, and most other programs require an EIN. If your business will interact with any government program, you need an EIN.
Tax Credit Programs
WOTC, R&D tax credits, and other tax credit programs require an EIN for the employer claiming the credit.
SAM.gov Registration
Registration in the System for Award Management (SAM.gov), which is required for federal grants and contracts, requires an EIN. How to register in SAM.gov.
How to Get an EIN for Free
Online Application
Apply directly through the IRS website at irs.gov. The online application is available Monday through Friday and provides your EIN immediately upon completion. The process takes about 10 minutes.
What You Need
- The legal name of your business
- Your entity type (sole proprietorship, LLC, partnership, corporation)
- Your Social Security number or Individual Taxpayer Identification Number
- Your business address
- The reason you are applying (started a new business, hired employees, etc.)
Common Mistakes to Avoid
- Paying for an EIN: Never pay a third party for an EIN. The IRS provides EINs for free. Websites that charge for EIN services are unnecessary intermediaries.
- Applying multiple times: Each business entity should have only one EIN. If you already have one, do not apply again.
- Confusing EIN with other numbers: Your EIN is different from your state tax ID, UEI number, or DUNS number. Programs may require multiple identification numbers.
Other Identification Numbers You May Need
- UEI Number: Required for SAM.gov registration and federal programs. UEI number guide.
- Texas Taxpayer ID: Assigned by the Texas Comptroller for state tax purposes.
- Texas Secretary of State filing number: Assigned when you register your business entity with the state.
Find Programs That May Fit Your Business
Once you have your EIN, you can start applying for programs. Our free screening report identifies which programs match your business. Start your free screening →