How Online Coaches & Course Creators Get Their EIN (Tax ID)
If you're building an online coaching business, selling digital courses, or tutoring virtually, an Employer Identification Number (EIN) is your business's tax ID. You'll need it for your dedicated business bank account, filing taxes for your knowledge-based services, paying any virtual assistants, and setting up payment processors like Stripe or PayPal. Getting your EIN directly from the IRS is free and fast, usually taking less than five minutes online. Do not pay another company to do this for you.
READY TO TAKE ACTION?
Use the free LaunchAdvisor checklist to track every step in this guide.
The Quick Answer: Your Free Tax ID for Online Education
Get your EIN directly from the IRS at irs.gov. It costs $0, takes about five minutes, and you receive your EIN instantly. Formation services that charge $50-$75 to obtain your EIN are doing the same exact thing you can do yourself in less time. For online coaches, tutors, and course creators, every minute and dollar counts. Save the five minutes and the fee for developing new course content or running a targeted ad campaign. The only time to let a formation service handle it is if you're already paying for their full package to set up your LLC and want everything bundled.
IRS Direct vs. Formation Service: Getting Your Coaching Business EIN
IRS Direct (irs.gov): $0 cost. 5 minutes. Instant EIN confirmation. Requires U.S. citizen or resident with SSN or ITIN. This is the best option for nearly all U.S.-based online coaches, course creators, and tutors.
Formation Service (e.g., ZenBusiness, Bizee): $40-$75 add-on. 1-5 business days. They apply on your behalf and send you the EIN. Best for non-U.S. founders launching an online education business who cannot apply directly, or U.S. founders who want to bundle their EIN application with their LLC setup for their coaching academy.
Phone Application: $0 cost. About 30 minutes by phone. Best for anyone, including non-U.S. founders, who cannot complete the online form due to technical issues or lack of an SSN/ITIN required for online application.
Step-by-Step: Getting Your Online Education Business EIN Online
This process is simple, freeing you up to focus on client calls or course launches. 1. Go to irs.gov and search for "EIN online application" or "EIN Assistant." 2. Select your entity type. For many online coaches and course sellers, this will be "Sole Proprietor" or "LLC" (Limited Liability Company) if you've set one up. 3. Enter your business information — legal name (e.g., your coaching brand name if you're a sole prop, or your LLC's legal name), the state where your business operates, and your personal name and SSN as the "responsible party." 4. Answer brief questions about your business activities. You might select categories like "Education" or "Other." 5. Review and submit. 6. Your EIN appears immediately on the confirmation screen. Save it as a PDF and keep it with your other online business documents. The application is available Monday through Friday, 7 am to 10 pm Eastern time.
When to Pay for EIN Help for Your Online Coaching Business
Pay a formation service for EIN assistance only if: * You are a non-U.S. citizen without an SSN or ITIN who is launching an online course platform and must apply by phone or mail. * You have already paid for a formation package (e.g., for your coaching LLC) that specifically includes EIN service. * You prefer to handle all business formation tasks for your online academy through a single vendor for convenience, even if it costs extra. Otherwise, save your money and do it yourself. That $50-75 can go towards a month of your Zoom subscription, a micro-influencer ad campaign, or a new course module.
Common EIN Mistakes for Online Course Creators & Coaches
Do not apply before your LLC is formed: The EIN is assigned to your legal entity. If you’re setting up an LLC for your coaching practice, ensure it's fully registered with your state before applying for the EIN.
Do not pay third-party websites: Many sites rank high on Google and charge for this free service. Always apply directly through irs.gov. Don't let a deceptive website take funds you could use for your marketing budget or software subscriptions.
Do not lose your EIN confirmation letter: Banks and online payment processors (like Stripe, PayPal, or your course platform's payout system) will ask for this letter to verify your business's tax ID. Store it digitally and in a safe physical spot. If you lose it, call the IRS Business Specialty Tax Line to retrieve it, but saving it upfront saves you time and hassle.
The Verdict: DIY Your EIN for Your Online Education Venture
For almost all U.S.-based online coaches, tutors, and course creators, the verdict is simple: Do it yourself at irs.gov. It’s free, instant, and the exact same process a formation service uses on your behalf. The five minutes you spend getting your EIN is the best return on time in your entire business formation process. This means more time for building your coaching framework, designing new course modules, or connecting with your audience.
How to Get Started: Your Coaching Business EIN Checklist
Have your LLC's legal name and state (if applicable), or your personal name and state (if a sole proprietor), along with your personal SSN ready. Go to irs.gov and navigate to the EIN online application. Complete the form, save your confirmation letter as a PDF, and store it with your other online business formation documents. You will absolutely need this document when you open your dedicated business bank account to manage your course sales and coaching payments.
RECOMMENDED TOOLS
IRS EIN Application
Free, instant EIN directly from the IRS
ZenBusiness
EIN service available as an add-on to formation packages
Bizee
EIN obtainment included in formation packages
Some links above are affiliate links. We may earn a commission if you sign up — at no extra cost to you.
FREQUENTLY ASKED QUESTIONS
Can I apply for an EIN before my LLC is approved?
Technically you can, but it is not recommended. The EIN should be tied to your legal entity name. Apply after your Articles of Organization are approved.
Do I need a new EIN if I change my business structure?
Sometimes. Converting a sole proprietorship to an LLC requires a new EIN. Adding or removing partners may require one too. Check with the IRS or a CPA when changing structures.
Is an EIN the same as a state tax ID?
No. Your EIN is a federal tax ID. Many states also require a separate state tax ID for sales tax or employer withholding. Your state's Department of Revenue handles state tax ID registration.
Apply This in Your Checklist