How to Get an EIN for LLC

Key Takeaways

• Here’s why an EIN is important and even necessary. Whether you plan to hire employees or not, an Employer Identification Number (EIN) is essential for LLCs operating in the United States. It functions like a Social Security Number for an individual, serving both tax and identification purposes.
• You will need an EIN to open a business bank account. It creates a less complicated way to hire employees and helps you keep personal and business finances separate.
• To prevent issues with delays and needing to reapply, get all your EIN application documents prepared in advance of applying for your LLC’s EIN. Make sure your Articles of Organization are accurate and how to go about appointing the correct responsible party. Changing policy is always a long and complicated process, but these are critical first steps!
• There are several methods the IRS allows you to apply for an EIN. For most applicants, the online application is the fastest, most convenient, and most trouble-free way to apply!
• Considering the sheer volume of money that will be thrown around, you can imagine accuracy will be key to the application process. Double-check all information and ensure that your LLC’s name matches up with state registration to avoid unnecessary delays or rejection.
• After receiving your EIN, safeguard the confirmation letter, use the EIN for tax filings and banking, and promptly update the IRS on any major changes to your LLC.

The IRS EIN LLC application Online application form. It’s open to any eligible business owner across the U.S. This number is extremely crucial to their Limited Liability Company.

An EIN is like a Social Security Number for a business. It’s necessary to open a business bank account, file business taxes, and hire employees.

The IRS issues EINs at no cost, so don’t fall for a site that tries to charge you.

The next sections deal with the step-by-step, tips, and FAQs.

What’s an EIN for your LLC?

An Employer Identification Number, or EIN, is a nine-digit number that the Internal Revenue Service issues to uniquely identify a business entity. It is the most important identifier for US-based business activities. Sometimes you will come across it as a Federal Employer Identification Number (FEIN), or a Federal Tax Identification Number.

For LLCs, this number acts as your personal social security number would for an individual. When it comes to filing your taxes or managing other business matters, it identifies you to the IRS. In most cases, all LLCs, especially multi-member LLCs require an EIN right from the start.

If you are running a single-member LLC and have no employees, you may not need to obtain an EIN. It might not be required, but you’ll sure wish you had one in that scenario!

Think of it as a business SSN

Consider it a business SSN. An EIN is to a business what an SSN is to an individual. It separates your business from every other business, and you need it every time you pay taxes or report earnings.

The IRS uses this number to track your LLC’s payroll taxes and any LLC business activity. EIN is required if you plan to hire workers at any point. That’s due to the fact that it enables you to keep your business records above board and prevents your personal info from becoming public.

Why your LLC absolutely needs one

Planning to apply for a business loan? As a practical matter, virtually every bank or financial institution will require your EIN. Neglecting to get one could hold back your business’s expansion.

It can stop you from getting the licenses you need or paying taxes owed in the proper way. Your EIN additionally safeguards your personal SSN when dealing with customers or on federal government types. This adds another layer of protection between your assets and business debts.

Unlocking banking and tax benefits

Tapping into banking and tax advantages is essential. After you have your EIN, you can begin accessing business credit and loans, and enjoy several other financial benefits.

It makes tax season easier as it distinguishes between personal and business return filings. Maximizing earning potential is another key benefit. LLCs with an EIN have access to specialized deductions and credits.

Getting an EIN is free and pretty straightforward! You can do this by first registering with your state, and then applying directly to the IRS.

Before you apply: LLC prep work

Getting your LLC application with the IRS EIN LLC form ready to submit will save you time, hassle, and money! You really don’t want to be scrambling at the last minute to make sure your LLC is all set up for taxes and legal matters.

Taking care of this prep work beforehand will save you time on your application and rejections or delays on initiatives that may not be viable. Here’s a quick list to check off:

• We ask that you protect the EIN application process. Make sure that everyone in your LLC who will have access to the EIN application knows how to use it.
• Confirm your LLC is registered with your state’s agency.
• Set up a business bank account with separate funds.
• Check the default principal business address—if you’re outside the U.S., you’ll have to apply by phone, fax, or mail.

Gather your LLC’s vital stats

In order to do so, you’ll need your LLC’s legal name and your intended principal business address. Get the date your LLC was formed and know what it is—a single or multi-member LLC.

This is so that the IRS has a clear picture of what your business does. Be ready to explain what you plan to do business doing in a few sentences! For example, “sales through e-commerce,” “business consulting,” or “rental of real estate.

The more accurate information you provide, the less likely your application will be put on hold for clarification.

Identify your responsible party correctly

The responsible party is the person or entity that has final authority over the funds and assets. This is often the designated member or owner who has day-to-day operational control.

Additionally, they’ll need a valid Social Security Number or ITIN. To ensure equity, the IRS allows only one EIN per responsible party per business day.

Determine the accurate responsible party. This is vital, most notably when it comes to receiving important tax-related notifications and opening a bank account.

Understand your LLC structure for IRS

Single-member LLCs are typically considered “disregarded entities” for tax purposes, while multi-member LLCs are taxed as partnerships. Your choice will shape how you file taxes and can affect your EIN application process.

Understand your LLC structure for IRS purposes. Not all multi-member LLCs are treated equally.

Key documents you might need

• State LLC registration certificate
• Operating agreement
• Responsible party’s ID (SSN or ITIN)
• Business address proof

How to get your LLC’s EIN

Obtaining an Employer Identification Number (EIN) should be one of the first steps for every LLC owner in the United States. The IRS offers a variety of methods to apply, each with distinct benefits and application procedures. Choosing which one to use depends largely on how quickly you need your EIN.

It really comes down to how you prefer to engage with forms. The IRS is doing its part by making it completely free and simple to apply. You’ll definitely want to make sure you follow its instructions down to the letter to avoid avoidable delays. Here’s what you should be aware of.

1. The speedy online IRS route

The speedy online IRS route is open weekdays, 7:00am to 10:00pm Eastern Time. Go to IRS.gov, fill out your Form SS-4, and submit it.

Provided your LLC is already formed and has a U.S. Address, you get your EIN right away—no waiting! Want to know the best part? You get a confirmation notice right away. This is the best option for those who want speed and low-hassle above all else.

2. Applying by mail: the traditional way

Mailing Form SS-4 down may be the traditional way, but it’s still a perfectly fine choice. You’ll need to print out the form and fill it out by hand. Then, send it to the appropriate IRS office by mail.

Follow the instructions for the address listed on the IRS website for your state. Just note that it can take up to 4 weeks to get your EIN by mail. Be sure to review the entire form for errors to prevent wasting your time and energy. Save yourself some time by using the correct address!

3. Faxing your completed Form SS-4

Or, you can fax your completed form to 855-641-6935. Faxing your completed Form SS-4 reduces the wait down to an average of four business days.

This is best for applicants who need their EIN as fast as possible, but do not want to apply online.

4. The rare phone application option

If your LLC is outside the U.S., call 267-941-1099 (not toll-free) between 6:00am and 11:00pm Eastern Time, Monday to Friday. This is especially true for anyone without a physical office in the U.S.

5. Essential info for Form SS-4

You’ll need your LLC’s legal name, trade name (optional), address and the year you’d like to start paying taxes.

The bottom line is that providing accurate, complete information from the start avoids a lot of headaches down the line. If you will owe $1,000 or less in employment tax, you can file either Form 944, instead of 941.

A Foreigner’s Step-by-Step Guide to Completing Form SS-4 for Your LLC’s EIN

• Form SS-4 is Your Key: This is the official IRS form you’ll use to apply for an Employer Identification Number (EIN) for your U.S. LLC, especially if you’re a non-U.S. resident without an SSN.
• Accuracy is Non-Negotiable: Just like we emphasized in our main EIN guide, every detail on this form matters. Typos or incorrect information can lead to significant delays or even rejection.
• Follow IRS Instructions: Always refer to the official IRS instructions for Form SS-4 for the most current and detailed guidance. We’re breaking it down for you here in a user-friendly way.
• Patience is a Virtue: If you’re applying without an SSN (which is common for foreigners), the process might take a bit longer than the online application available to U.S. residents.

Getting an EIN is a critical step after forming your LLC in the United States. This number is essentially your business’s Social Security Number, vital for opening a U.S. bank account, filing taxes, and if you ever decide to hire employees.

Let’s walk through how to tackle Form SS-4, section by section, ensuring you’re well-prepared.

Before You Start: Download and Prepare

1. Get the Form: First things first, download the latest version of Form SS-4, Application for Employer Identification Number, directly from the IRS website.
   • IRS Web Site: Form SS-4, Application for Employer Identification Number
2. Grab the Instructions: It’s also wise to download the official Instructions for Form SS-4. These provide comprehensive details for every line.
   • IRS Web Site: Instructions for Form SS-4
3. Pen or Computer? Your Choice:
   • You can print the form and fill it out by hand (make sure to use a black pen for clarity).
   • Alternatively, you can type directly into the PDF form on your computer, then print and sign it. This often looks neater.
4. CAPITALIZE IT!
   • If you’re filling out Form SS-4 by hand, it’s highly recommended to use ALL UPPERCASE LETTERS. The IRS prefers this, and it can genuinely help in speeding up the processing of your application by avoiding any misinterpretations.

Navigating Form SS-4: A Section-by-Section Guide for Foreign LLC Owners

Let’s dive into the form itself.

• EIN Box (Upper Right Corner)
  • You’ll spot an “EIN” box in the top right section of the form. LEAVE THIS BLANK! The IRS will fill in your new EIN here once your application is approved.

Line 1: Legal name of entity (or individual) for whom the EIN is requested

• This is where you’ll enter your LLC’s official legal name.
• Crucial Tip: Ensure the name here matches exactly how it’s listed on your LLC’s formation documents (like your Articles of Organization, Certificate of Organization, or Certificate of Formation). Consistency is key!
• Special Note for Louisiana or West Virginia Filers: If you’re forming your LLC in these states, you might need your EIN before your LLC is officially formed. In this case, make absolutely sure your desired LLC name is available (or you’ve properly reserved it, following state guidelines) before you apply for the EIN.
• For All Other States: It’s best practice to wait until your LLC is officially approved by the state before applying for your EIN.

Line 2: Trade name of business (if different from name on line 1)

• A “Trade Name” is also known as a DBA (Doing Business As), Fictitious Name, or Assumed Name.
• Most foreign LLC owners will leave this line empty.
• When to Fill It In: If, after forming your LLC, you’ve officially registered a DBA that your LLC will operate under, and you want this name associated with your EIN, then you can enter your Trade Name/DBA here.
  • (Related Reading: Do I need a DBA for my LLC? – Bu, ana makaledeki ilgili makale referansına bir iç link olabilir)

Line 3: Executor, administrator, trustee, “care of” name

• Leave this line empty. This field is not applicable when an LLC is obtaining an EIN.

Lines 4a and 4b: Mailing address

• Here, you’ll provide a reliable mailing address where the IRS can send important correspondence, like tax documents or reminders.
• Address Options:
  • This can be a U.S. address or a non-U.S. (foreign) address.
  • It can be the same address listed on your LLC formation documents, but it doesn’t have to be.
• Key Consideration: This address should be one where you can consistently and reliably receive mail for your LLC. It will also be the address used for future tax filings with the IRS.
• Pro Tip for Banking: Using a U.S. address in lines 4a and 4b may simplify the process of opening a U.S. business bank account. The address you list here will appear on your EIN Confirmation Letter, and some banks might accept this as a form of U.S. address proof.
  • Getting a U.S. Address (if you don’t have one): If you don’t have friends or family in the U.S. whose address you can use (with their permission, of course), consider hiring a Registered Agent service that also allows you to use their address for general business mail. The company we often recommend for this is Northwest Registered Agent. They offer mail scanning services, uploading your LLC’s mail to an online account. They’ve been a reputable company for over 20 years. (Bu kısım, ana makaledeki tavsiyeye sadık kalınarak eklendi, ancak Startupsole’un kendi premium adres hizmeti varsa bu kısım ona göre uyarlanabilir.)
• Important Notes for Addresses:
  • Non-U.S. Address Format: If using a foreign address, be precise. Enter the city, province (or state), postal code, and the full name of the country (no abbreviations).
  • Future Address Changes: If your LLC’s mailing address changes in the future, you’ll need to notify the IRS by filing Form 8822-B.

Lines 5a and 5b: Street address (if different from mailing address in lines 4a and 4b)

• You can generally leave lines 5a and 5b empty if your mailing address (from 4a/4b) is also your LLC’s physical street address, or if your LLC doesn’t have a separate physical street address in the U.S. (common for foreign-owned online businesses).

Line 6: County and state where principal business is located

• Enter the county (not country!) and state where your LLC’s principal U.S. business operations are based.
• This will typically be either your LLC’s designated principal U.S. address or your LLC’s Registered Agent address if you don’t have another U.S. office.
• Example: Broward County, Florida
• Helpful Tip: To find the county for a U.S. address, you can use online tools like “What County Am I In”. (Bu, ana makaledeki faydalı araç referansına bir link olabilir.)

Line 7a: Name of responsible party

• The “Responsible Party” for EIN purposes must be an individual person, not another company. For an LLC, this will be one of its Members (owners).
• Single-Member LLC: You (the sole owner) will be the Responsible Party.
• Multi-Member LLC: Any one of the LLC Members (including yourself) can be designated as the Responsible Party. This person should be someone who has a significant degree of control over the LLC’s finances and assets.

Line 7b: SSN, ITIN, or EIN of responsible party

• This is often the most confusing box for non-U.S. residents who don’t have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
• The Solution is Simple: Enter “Foreign”.
• The IRS routinely issues EINs to international individuals and businesses. If the Responsible Party (from Line 7a) does not have an SSN or ITIN, you must enter “Foreign” in this box.
• Important Note: If your LLC is owned by another company (a “Parent LLC”), you cannot use the Parent LLC’s EIN here. You must still list an individual person in Line 7a and enter “Foreign” in Line 7b (assuming that individual doesn’t have an SSN/ITIN).
  • (For more details, see EIN Responsible Party for LLC – Ana makaledeki ilgili makale referansına bir iç link olabilir)

Line 8a: Is this application for a limited liability company (LLC)?

• Check the “Yes” box.

Line 8b: If 8a is “Yes,” enter the number of LLC members

• Indicate the number of owners (Members) in your LLC.
  • Single-Member LLC: Enter “1”.
  • Multi-Member LLC: Enter the total number of Members.
• Note: If your LLC is a subsidiary (owned by another company or companies), enter the number of owning companies here.

Line 8c: If 8a is “Yes,” was the LLC organized in the United States?

• Check the “Yes” box. Even if your LLC is foreign-owned, it was still legally organized (formed) within one of the U.S. states.

Line 9a: Type of entity

• Critical Note Before You Proceed:
  • We strongly recommend consulting with a qualified accountant or tax advisor before deciding how your foreign-owned LLC will be taxed by the IRS.
  • For IRS purposes, “foreigner” typically means a non-resident alien (NRA). “U.S. person” means a U.S. citizen or U.S. resident alien.
  • Your U.S. tax obligations will depend on many factors: your country of residence, any tax treaties between your country and the U.S., how and where your LLC generates income, your client locations, whether your LLC has a “permanent establishment” in the U.S., if its income is “effectively connected” to a U.S. trade or business, and much more.
  • Taxes are complex, even more so for international entrepreneurs. Please seek professional advice. We are unable to provide tax assistance or tax advice. Thank you for your understanding. (Bu uyarı, ana makaledeki gibi korunmalı.)
• For a Foreign-Owned Single-Member LLC:
  • You generally have two choices for how your LLC is treated for U.S. tax purposes:
    • To be taxed as a Disregarded Entity (most common): Check the box for “Other (specify)” and on the line provided, write “Foreign-owned U.S. Disregarded Entity”.
    • To be taxed as a C-Corporation: Check the box for “Corporation (enter form number to be filed)” and write “1120” on the line. (Note: If you choose this, you must also file Form 8832 after receiving your EIN to officially make this C-Corporation tax election.)
  • Important Notes for SMLLCs:
    • All foreign-owned Single-Member LLCs taxed as Disregarded Entities are generally required to file Form 5472 with the IRS annually. (More info: Form 5472 and foreign-owned LLC – Ana makaledeki ilgili makale referansına bir iç link olabilir)
    • If a foreign company owns your Single-Member LLC, your LLC is typically considered a branch or division of that parent company for U.S. tax purposes.
    • (Considering an LLC taxed as a C-Corp? It’s not very common for this setup, but see here: LLC taxed as C-Corp – Ana makaledeki ilgili makale referansına bir iç link olabilir)
• For a Foreign-Owned Multi-Member LLC:
  • You can choose to be taxed as a Partnership or a C-Corporation.
    • To be taxed as a Partnership (most common): Check the box for “Partnership”.
    • To be taxed as a C-Corporation: Check the box for “Corporation (enter form number to be filed)” and write “1120” on the line. (Again, you’ll need to file Form 8832 after getting your EIN to make this election.)
  • Note: The same options apply if the Multi-Member LLC is owned by a mix of foreigners and U.S. persons. (Considering an LLC taxed as a C-Corp? See here: LLC taxed as C-Corp – Ana makaledeki ilgili makale referansına bir iç link olabilir)

Line 9b: State & foreign country (if applicable) where incorporated/organized

• State: Enter the full name of the U.S. state where your LLC was officially formed (e.g., “Wyoming”, “Delaware”). Do not use abbreviations.
• Foreign country:Leave this blank.
  • Important: These instructions are specifically for non-US residents who have formed an LLC within the U.S. They are not for individuals who have formed a company outside the U.S. and now need a U.S. EIN for that foreign entity.

Line 10: Reason for applying

• Select “Started a new business (specify type)”.
• On the line to the right, briefly describe the primary type of business your LLC will conduct.
  • Easy Start: Look at the options in Line 16 of Form SS-4. If one of those default checkboxes accurately describes your LLC’s main business purpose, you can simply use those words here.
  • Otherwise: Enter a concise word or phrase that best fits. You can also refer to the NAICS Code system (North American Industry Classification System), which is how the IRS classifies businesses.
    • The NAICS Code helps government agencies identify a business’s primary line of work for statistical analysis and, in case of an audit, to compare your business against similar ones in your industry.
    • (For help finding your LLC’s NAICS Code, see: NAICS Code for LLC – Ana makaledeki ilgili makale referansına bir iç link olabilir)
• Important Note: Even if your LLC will have multiple products, services, or revenue streams, just enter the primary business activity here. Don’t worry, this doesn’t lock your LLC into only doing this forever. You can change your LLC’s line of work later without needing to update the IRS on this initial application.

Line 11: Date business started or acquired (Mo., day, year)

• Enter the official approval date of your LLC by the state. This is also known as the LLC’s effective date.
• You can find this date on your approved Articles of Organization, Certificate of Organization, or Certificate of Formation.
• This is considered your business start date, even if you haven’t begun actual business activities yet.
• Format it as: Month/Day/Year (e.g., 01/15/2025 for January 15th, 2025).

Line 12: Closing month of accounting year

• Most foreign-owned LLCs, like most U.S. businesses, operate on a calendar year for tax purposes (January through December).
• If this is the case for your LLC, enter “December”.

Line 13: Highest number of employees expected in the next 12 months (if none, enter -0-)

• Important Note for Foreigners: Most foreign LLC owners will not have U.S.-based W-2 employees, at least initially. If this applies to you, you’ll likely enter “0” in each of the three boxes (Agricultural, Household, Other).
• Understanding Employees vs. Contractors:
  • When you hire a W-2 employee in the U.S., you (as the employer) are responsible for withholding income taxes, Social Security, and Medicare taxes, and paying unemployment taxes on their wages.
  • If you hire 1099 independent contractors (common for freelancers), you generally are not responsible for these withholdings.
  • We cannot help determine if someone is an employee or an independent contractor. Please consult with your accountant and review IRS guidance: employee vs independent contractor – Ana makaledeki IRS referansına bir link olabilir).
• Filling out Line 13:
  • If you do plan to hire U.S. W-2 employees within the next 12 months, enter the approximate number you expect in each category. If a category will have no employees, enter “0”. Do not leave any field blank.
  • If you will NOT be hiring U.S. W-2 employees in the next 12 months, enter “0” in all three boxes.
• Definitions:
  • Agricultural employee: Works on a farm (harvesting, livestock, machinery operation, etc.).
  • Household employee: Works in or around your home regularly (maids, babysitters, gardeners hired as employees, not contractors). (See IRS: household employees – Ana makaledeki IRS referansına bir link olabilir).
  • Other: Most U.S. employees of foreign-owned businesses would fall into this category.

LLC EIN pitfalls: avoid these errors

Applying for an EIN for your LLC is pretty straightforward on the surface. One misstep can turn into a major pain in the neck! Mistakes on such a small detail are just asking for trouble! Even things as minor as typos can cost you several weeks or worse—having to refile from scratch. Knowing what to watch out for on your application can make all the difference!

Here’s the LLC EIN pitfalls to watch for, so your application goes swimmingly and without any bumps in the road.

Common LLC application mistakes

This is a common pitfall that many people trip over by mis-typing an LLC name or choosing the incorrect entity type. Some send in old IRS forms or don’t follow new instructions, resulting in the application being rejected. We understand that folks rush through and make mistakes, leaving out all the necessary information.

Some include a foreign address that exceeds the IRS’s 35-character-per-line limit. Common errors Typos—wrong email address, phone number, or Social Security number—are easy errors to make, but difficult errors to correct. Make sure your business address is listed in the proper format!

Otherwise, the system will not be able to create your request on the spot. What’s more, turning in the application outside of IRS business hours will delay the process even more. Each of these items is an unnecessary time-waster at best or a guaranteed application rejection at worst.

Ensuring your information is accurate

Verifying each piece of information against your official LLC paperwork will ensure that all names and addresses are in a row. Having a second set of eyes on your application will prevent mistakes that you’ll miss yourself. Being careful at this stage will prevent you from facing a lot of pain in the future.

Getting it right means your application is processed sooner and you’re not waiting weeks on end while the correction is made.

What if your application is rejected?

What to do if your application gets denied. The most common reasons are name mismatch, incorrect entity type, or incomplete application. Take care of the problems, and then reapply for your EIN.

Typically, for non-U.S. Citizens and foreign LLCs the application must be submitted by Form SS-4 by fax or by mail. Yet the online system often locks these individuals out, so an alternative path is needed.

Double-check your LLC name exactly

Your LLC name should be as it appears on your state records. That means every letter space punctuation mark! Use the same name, spelled exactly the same—on banking forms, IRS applications, local business licenses—to prevent confusion later on.

Occasionally even a random comma or period will throw a wrench in the works.

Got your EIN? What’s next?

Getting your EIN is a big milestone. Once you’ve received your EIN from the IRS, take a moment to congratulate yourself! Then, follow these simple steps to help your new LLC remain in good standing and compliant. Getting the EIN is just the first step.

Just a few simple steps will help you be prepared to file your taxes, hire employees, and open your bank accounts. Here’s a rundown of what comes next:

• Open a business bank account using your new EIN.
• Get any required local licenses or permits required by your municipality or county.
• Set up payroll if you plan to hire people.
• Register with your state tax authority, only if your state is one that requires you to register.
• Keep your EIN confirmation letter in a safe place.
• Check to see if your state has annual or biennial reporting—mark the report due date on your calendar.
• Set up your EFTPS account so you can make federal tax payments 24/7.
• If you’re a state ready to lead, make it happen, and make a business formation notice a requirement. Don’t forget to ensure that it gets published in the local paper!

Safeguard your EIN confirmation letter

The IRS will mail you a confirmation letter when you get your EIN—keep it somewhere secure. This business case study is going to be your proof for banks, lenders, and government agencies.

If a fraudster gets their hands on your EIN, they could use it to perpetrate identity fraud. They can use it to open accounts in your business’s name. Photocopy this letter, both hard copies and electronic copies, and store them in different locations. This will help you have a copy available even if you lose the original.

Using your EIN for business tasks

You’ll probably find you need to produce it when opening a business bank account, for example. Your neighborhood bank will require it. Only then can you have an account where you can deposit funds and write checks to others.

You’ll need your EIN to fill out any required federal and state tax forms. You’ll need it, too, when you set up payroll. Whenever you add employees, your EIN is used to identify you as an employer. Additionally, it guides your reporting of wages paid and withholdings made.

When your LLC needs a new EIN

If your LLC welcomes on new owners or undergoes management structure changes, you may need to get a new EIN. If you change from a single-member LLC to a multi-member LLC, you would generally be required to get a new number. This is a nine-digit number issued by the IRS.

You will need to go through this process if you are planning on merging with another business.

Keep the IRS updated on changes

If you move, change your org’s name or DBA, or otherwise alter your business structure, let the IRS know. Download Form 8822-B for this process to change your name or address.

Updating your information will help ensure you do not miss critical notices, avoid fines, and avoid tax complexities.

EIN nuances: LLCs vs. others

Filing for an EIN online is the first step for most U.S. Businesses. The details vary greatly based on whether the company is structured as an LLC or another business entity. Limited liability companies, for example, use EINs in much more varied ways than do corporations, sole proprietors, and nonprofits.

Every one of these entities needs EINs in order to file tax forms, run payroll or open bank accounts. The requirements of who is required to apply and when can be widely different, and can change overnight. Nonprofits must show they have a bona fide tax-exempt purpose before they can obtain an EIN and use it to accept donations or grants.

In most states, a Series LLC would typically need only a single EIN. Many owners do choose to use more than one EIN to provide additional clarity between series.

How LLC EIN needs differ

In cases where there isn’t staff, the owner might be able to utilize their Social Security Number. This typically suffices for tax filings if you intend to operate as a sole proprietorship.

For instance, an LLC can elect to be taxed as a corporate entity. In order to do so, the LLC must have its own EIN. This is true even if it only has employees, or only pays excise tax.

For multi-member LLCs, an EIN will always be needed from day one since the IRS automatically treats these entities as partnerships. In states such as California and Texas, even stricter regulations are in force. So it’s just common sense to check your state law.

How LLC EIN needs differ for Series LLCs is also important to note. Though one EIN will generally be enough, applying for more EINs can help protect from risk and enhance bookkeeping.

Single-member vs. multi-member LLCs

While tax rules vary depending on whether the LLC has one or multiple owners, multi-member LLCs are taxed as partnerships unless they elect corporation status.

By comparison, multi-member LLCs are taxed as partnerships by default, unless they elect to be taxed as something else. This affects much more than taxes. It affects the way the IRS treats the entity for tax purposes and which tax forms they are required to file.

In contrast, multi-member entities must file partnership returns and need an EIN, but single-member entities have more leeway.

State considerations for your LLC EIN

States may have their own rules when it comes to EINs. Others allow you to register a business and then demand proof of an EIN later. Some require it so you can open a bank account or get local business licenses.

Maintaining compliance with state and federal law will go a long way toward keeping everything running smoothly. Check your state’s website for up-to-date information.

The best course of action is to consult with a tax pro well in advance, as even one mistake can bring a world of hurtful delays.

Conclusion

Getting an EIN for your LLC is an important step in the process of running a real, legal business. With your new EIN, you’re ready to start hiring employees, open a business bank account, and get your payroll started. The whole process with the IRS is not too bad if you have your LLC information in order. While the majority of people tend to rush through it on the web, mail and fax submissions are accepted. Any errors or missing information will only cause further delay in processing so ensure you double check your application before submitting it. When you do receive your EIN, keep it in a safe location—this is a number that banks and vendors will request. Need clarification on an application requirement? Turn to IRS resources or small business development centers in your community. Having your LLC in order right from the start can save you a world of headache down the line. Want to make sure you start your new business out the right way? Start your EIN application and proceed to the next level.

Frequently Asked Questions

What is an EIN and why does my LLC need one?

What is an EIN and why does my LLC need one. The IRS uses it to track your LLC for tax purposes. You’ll need one to open a business bank account, hire employees, and file your federal tax returns.

When should I apply for an EIN for my new LLC?

When to apply for an EIN for your new LLC That way, you have your new LLC’s name and structure officially set up before you apply with the IRS.

Can I apply for an LLC EIN online?

Can I apply for an LLC EIN online with the IRS? We promise it’s the fastest way to do it! You will get your EIN immediately after you complete the online application on the IRS.gov website.

What common mistakes should I avoid when applying for an EIN?

Mistake #2 – Using the wrong business entity type Additionally, don’t try to substitute your personal Social Security Number for your LLC’s EIN application. Double-check everything carefully before you hit submit to avoid delays or rejection from the IRS.

Can a non-U.S. resident get an EIN for their LLC?

FAQ #3 – Can a non-U.S. Resident apply for an EIN for their LLC? If you are ineligible to apply online, you may fax or mail Form SS-4 to the IRS. You don’t need a Social Security Number.

What should I do after receiving my LLC’s EIN?

What should I do after receiving my LLC’s EIN? Open a business bank account, apply for business licenses, and use it to update your tax records. You’ll want to store your EIN confirmation letter alongside your other important business documents.

Does every LLC need a separate EIN?

Generally speaking, all LLCs need to get an EIN, especially if the LLC intends to hire employees or has more than one member. Single-member LLCs with no employees can operate their business using their Social Security Number. Regardless, getting an EIN is a really good idea!