What is an EIN? How to get an EIN for an LLC?
An EIN stands for Employer Identification Number and it is issued by the IRS to business entities, such as an LLC.
Video Transcript:
Even though it’s called an Employer Identification Number, it doesn’t mean that you have to have employees. The EIN is just a type of Taxpayer Identification Number (TIN) that identifies your LLC with the IRS.
An easy way to think of an EIN is that it’s like a “social security number” for your LLC.
An EIN is similar to a social security number in that it has 9 digits.
To differentiate an EIN from an SSN (123-45-6789), there are 2 digits followed by a hyphen and then 7 more digits (ex: 12-3456789).
EIN Synonyms
An LLC’s EIN has many different names, but they all mean the same thing:
- EIN Number
- Employer ID Number
- Employer Identification Number
- Federal Employer ID Number
- Federal Employer Identification Number
- FEIN
- Federal Tax Number
- Federal Tax ID Number
- Federal Tax Identification Number
What is an LLC’s EIN Number used for?
EIN Numbers are used for:
- Opening an LLC business bank account (checking, savings, or investment accounts)
- Filing taxes (federal, state, and local)
- Handling employee payroll (if applicable)
- Obtaining business lines of credit or business loans
- Obtaining credit cards in the name of the LLC
- Applying for business licenses
Wait for LLC Approval
Important:
Wait for your LLC to be approved by the state before applying for your EIN. Otherwise, if your LLC filing is rejected, you’ll have an EIN attached to a non-existent LLC.
Exception to the rule:
If you are forming a Louisiana LLC or a West Virginia LLC, things are a little backwards (make sure to follow our lessons step-by-step). You’ll need to confirm your LLC name availability first, then get your EIN from the IRS, and then file your Articles of Organization with the state.
Applying for an EIN for your LLC is free ($0)
Applying for an EIN for your LLC is completely free.
The IRS doesn’t charge anything for applying for an EIN.
Don’t have an SSN or ITIN?
I made a mistake in the video above. I said: “If you are a foreign national you will need to use your ITIN. If you don’t have your ITIN, you will first need to apply for your ITIN before applying for your EIN.” This is not true.
Apologies for the confusion. We now have better information from the IRS about how to get an EIN without an SSN or without an ITIN.
If you have a foreign-owned LLC, you can still get an EIN without an SSN or ITIN. You just can’t apply for your EIN online. Instead, you’ll need to mail or fax Form SS-4 to the IRS. We have instructions here: How to Apply for EIN without an SSN or ITIN.
EIN Phone Application
Note: The video above also explains how you can get an EIN by phone. This is no longer the case. The IRS has discontinued this service.
The only businesses that can get an EIN by phone are Exempt Organizations (like non-profits) and Foreign Companies (companies formed or organized outside of the United States).
EIN for Husband and Wife LLC
If you have a 2-member LLC owned by husband and wife, and are located in a community property state, you can elect a special form of taxation called a “Qualified Joint Venture LLC“.
A Qualified Joint Venture with the IRS allows your husband and wife LLC to file taxes as a Sole Proprietorship instead of a Partnership. This can save you time and money in accounting and tax costs.
There may be additional benefits to obtaining Qualified Joint Venture status with the IRS and this is a conversation you’ll want to have with an accountant.
Please see our full article here: Qualified Joint Venture (Husband and Wife LLC)
EIN Responsible Party for LLC
The EIN Responsible Party is the person that goes on file with the IRS when you apply for an EIN for your LLC.
Think of the Responsible Party as the LLC’s “contact person”. This is the person the IRS will send mail and correspondence to.
If you have a Single-Member LLC:
You will be the EIN Responsible Party.
If you have a Multi-Member LLC:
One of the LLC Members will be the EIN Responsible Party.
The IRS just wants one EIN Responsible Party. They don’t want all the LLC Members information. The IRS gets the other Members’ information when you file your 1065 Partnership return and issue K-1s each year.
Although any LLC Member can be listed, the person listed will take on the responsibility of making sure the LLC’s taxes are handled properly.
If your LLC is owned by another company:
The IRS made changes in 2018 that no longer allow an EIN Responsible Party to be a company. The EIN Responsible Party must be an individual person. So it’s best to list one of the individual owners of the parent company.
Note: If you have an LLC that is owned by another company and you try to get an EIN online, you’ll just get an error message at the end of the application.
Learn more:
To learn more about who can be the EIN Responsible Party for your LLC, please see EIN Responsible Party for LLC.
LLC taxed as a Corporation
By default, an LLC is taxed based on the number of Members (owners).
And “by default” means the LLC doesn’t elect to be taxed as a Corporation (either a C-Corporation or an S-Corporation). Instead, the LLC is just taxed in its default status.
(related article: how are LLCs taxed)
The default tax status for a Single-Member LLC is a Disregarded Entity, meaning if the LLC is owned by an individual, the LLC is taxed like a Sole Proprietorship. If the LLC is owned by a company, it is taxed as a branch/division of the parent company.
The default tax status for a Multi-Member LLC is Partnership, meaning the IRS taxes the LLC like a Partnership.
If instead, you want your LLC to be taxed as a C-Corporation, you’ll first apply for an EIN and then later file Form 8832.
If you want your LLC taxed as an S-Corporation, you’ll first apply for an EIN and then later file Form 2553.
If you choose to have your LLC taxed as a C-Corporation, make sure you speak with an accountant as there are a lot of details you need to consider. Having an LLC taxed as an S-Corporation is a much more popular choice than having an LLC taxed as a C-Corporation. S-Corporation taxation usually makes sense once an LLC generates about $70,000 in net income per year.
How to apply for an EIN for your LLC
Below you will find 3 different sets of instructions:
1. If you have an SSN or ITIN, use the online EIN application
We recommend applying for an EIN online for your LLC if you have an SSN or ITIN.
This is the easiest filing method and has the fastest approval time.
We have instructions here:
How to apply for an EIN online
2. If you apply for an EIN online, but you get an error message
If you have an SSN or ITIN, apply for an EIN online, but you get an error message (called a reference number) at the end, you will need to mail or fax Form SS-4 to the IRS instead.
We have instructions here:
Apply for EIN for LLC with Form SS-4
3. If you don’t have an SSN or ITIN
If you don’t have an SSN or ITIN, you can still get an EIN for your LLC. You just can’t apply for an EIN online.
You will need to mail or fax Form SS-4 to the IRS. You must also fill the form out a certain way (on line 7b) in order to have your EIN approved.
We have instructions here:
How to get an EIN without an SSN or an ITIN
EIN Confirmation Letter (EIN Approval)
Once the IRS issues an EIN for your LLC you will receive your official approval, known as an EIN Confirmation Letter (CP 575).
The method in which you applied for an EIN will determine how you receive your EIN Confirmation Letter.
If you apply for an EIN online:
You’ll be able to download a PDF copy of your EIN Confirmation Letter at the end of the online application. There is no waiting time. The IRS will also send you a duplicate copy in the mail in about 4 to 5 weeks.
If you send Form SS-4 by fax:
The IRS will fax you back your EIN Confirmation Letter within 4 to 7 business days.
If you send Form SS-4 by mail:
The IRS will mail your EIN Confirmation Letter within 4 to 8 weeks.
Here is what the EIN Confirmation Letter for an LLC looks like:
How to Cancel an EIN?
If there was a mistake with your first EIN application or you need to cancel your EIN Number for any reason, you just need to mail a cancellation letter to the IRS.
We have instructions here: how to cancel an EIN.
You don’t have to wait for your EIN cancellation to be finalized before getting a new EIN for your LLC.
LLC Business Bank Account
After getting your EIN, you can then open a separate business bank account for your LLC.
Banks usually ask for the following documents to open an LLC business bank account:
- EIN Confirmation Letter
- LLC Approval (stamped and approved Articles of Organization, Certificate of Organization, or Certificate of Formation)
- LLC Operating Agreement
- Driver’s License and/or Passport
Aside from the above, banks may also require other paperwork (like proof of address), so we recommend calling a few banks ahead of time before going in. It’s also a good idea to ask if they have monthly fees on their “basic” business checking accounts. There are a number of banks that don’t have monthly fees.
If you’re a non-US resident (foreigner), you will need to show 2 forms of identification, such as your foreign passport and your foreign driver’s license. There are additional things (shown below) to keep in mind when opening a U.S. bank account for your LLC: Non-US resident opening U.S. bank account for an LLC
IRS Contact Information
If you have any questions, you can call the IRS at 1-800-829-4933. Their office hours are 7am – 7pm local time, Monday through Friday.
We recommend you call the IRS early to avoid the typically long holding times.
References
https://www.irs.gov/pub/irs-pdf/p1635.pdf
https://www.irs.gov/pub/irs-pdf/p3402.pdf
https://www.law.cornell.edu/cfr/text/27/24.47
https://www.law.cornell.edu/cfr/text/27/25.169
https://www.law.cornell.edu/cfr/text/27/40.361
https://www.law.cornell.edu/cfr/text/20/422.112
https://www.law.cornell.edu/cfr/text/26/301.6109-1
https://www.law.cornell.edu/cfr/text/26/301.7701-3
https://www.law.cornell.edu/cfr/text/26/301.7701-12
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers
https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein
https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc
https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies
https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
43 Comments
Hi Matt,
i am a huge fan of LLCUniversity. you are a giver and i really appreciate it. keep up the good work , which you are already doing great.
i have a question regarding EIN. i am going to start e-business where i’ll import sales tax exempt goods from europe and will sell them online. while setting up my EIN, it asks for business category in “Details” section. it has many categories but “Retail” seems very close but neither short description nor the IRS help / google tells exactly what should be the category.
Could you please give me some guidance or refer me some link which explains this kind of business category.
thanking in advance.
regards,
moen chishti
Hi Moen, apologies for the slow reply. And first, thank you for the kind words! I really appreciate it! There are no good write ups on this, so, based on what you’ve shared, it’s easiest just to select “other”, and then manually and briefly explain your business. Hope that helps! Let me know if you need anything else.
When changing the name of an LLC do I need a new EIN number? Thank you for all info.
No, an LLC name change does not require a new EIN. You can find additional details from the IRS here.
I registered my EIN before my LLC was approved and it is approved but I am a Single Member LLC and already have a business checking account and sales tax permit. I am pretty sure my EIN is connected to a Sole Proprietorship, but if i am going to be taxed as a disregarded entity either way considering I am the only member, do i need to get another EIN for my LLC?
Thank you for all of the information you provide.
Hi Fred, the first EIN you applied for, was that under your name, or under the LLC? If it’s under your name, then it’s attached to you as an Sole Proprietorship. If your bank is okay with moving the account into your LLC name, then you may be okay. But it is cleaner to get a new EIN so it’s “attached” to the LLC. Also note, your business checking account and sales tax permit are are also attached to you and not the LLC. If you’re going to form an LLC and do business through the LLC, then the bank account and sales tax permit should be in the LLC’s name.
Thank you for the extremely quick response. I have an EIN registered for my business and a separate bank account with that EIN in the LLCs name. The sales tax permit is also in the LLCs name. I think I have done everything correctly so far, my only concern was that I created the EIN before I created the LLC. When creating my original EIN I picked LLC on the first page when it asks you what legal structure you identify yourself as. I than picked starting a new business and that I am the only member. The only other thing is when I was creating the EIN, when it asks who is the responsible party, I picked myself the individual, not an existing business. Both my name and the LLCs name are on the EIN, my name has Sole MBR next to it. Thank you again for any information you can provide for me.
Fred
Okay, thanks for the details. I had it incorrectly understood the first time. You did everything correctly Fred. You just applied for the EIN before the LLC was actually approved. It’s usually best to form the LLC first then apply for the EIN, but since everything went through, you’re fine and all set :) You applied for the EIN correctly.
Same here – thanks for answering Fred’s question as I had the same one. thank you!
Nice! You’re welcome. It pretty much works like this… the IRS doesn’t check if the LLC is “approved” before they issue an EIN. Hope that helps.
Hi Matt,
Excellent work on all the areas you are posting in this website. Extremely helpful!
I would vey much appreciate if you could advise me on the situation I describe below regarding the EIN.
I am a homemaker and file taxes jointly with my husband. Recently I have been looking at the various options to work from home through online jobs. Along these lines I have looked into:
– typing
– translating documents from and into French
I applied to an online agency who would consider me as an independent contractor when forwarding to me the assignments. This agency has requested me my social security number. Providing my social security number through a website is something I am not too comfortable with particularly due to the risk of identity theft.
Here is where I have the following questions with which I hope you may help me.
1) In the IRS website I saw that there is a number (EIN) which may be used instead of the social security number and thus protect the SSN. Would this be a possibility for the situation I described?
2) If I get an EIN how would this affect the joint tax filing? Would I have to file everything under the EIN or only what I have earned by my online jobs?
3) If I get an EIN but then it turns out that I don’t get any assignments thus I don’t earn any money, what happens them? What is it I then have to do when the time comes to file my taxes?
4) Can a company refuse to use my EIN instead of my SSN and insist that if I don’t provide them with the SSN then they will not consider me for the typing and/or translating assignments as independent contractor?
5) Is there something else I should consider and/or be cautious about?
Thank you.
Sincerely,
Iris
Hi Iris, thanks for the kind words. Glad the site has been helpful for you :) This is a little bit outside of our wheelhouse, but I’ll answer as best I can. 1. The EIN is used for business activity, whether that’s an LLC, or a Sole Proprietorship. The purpose of the EIN is not to mask the SSN, but sometimes an EIN can offer privacy, say when filling out a W9 or similar tax form. I think you can use the EIN for your Sole Proprietorship/Independent Contracting and it will have that affect for you. 2. It should not affect your joint tax filing, but please double-check with your accountant. 3. I can’t tell you how to file your taxes, but if you get an EIN and then don’t have any tax obligations, no need to worry. Simply obtaining an EIN doesn’t mean you owe a return. 4. Yes, but it’s not that common. 5. Yes, you could form an LLC and then do the contract work through the LLC. You’ll get an EIN for the LLC (instead of for yourself) and you’ll also get liability protection in case you were ever involved in a lawsuit. Just something to consider. Hope that helps :)
It has been very helpful. Thank you!
You’re welcome Iris!
Hi Matt,
Hope you can help with a question. I am a foreigner and my attorney registered me my single member LLC via an SS-4 form. I received the CP575A notice from the IRS and it only lists my name on the notice, my company name is not on there. When my attorney registered for the EIN, she listed my name on Line 1 for Name of Legal Entity on the SS-4, and the company name on Line 2 under Trade Name. She checked “yes” to LLC on Line 8. For 9a, she put “Sole Proprietor”. Our LLC is registered with the state under the company name, not under my name. I believe the EIN may have been registered incorrectly. Shouldn’t my company name be listed somewhere on the CP575A?
I spoke with the IRS today and they said to submit a letter requesting to update the information. Have you ever heard of this situation before? They can’t tell if I’m registered as a sole proprietor or a disregarded entity. I’m a little confused.
Thanks in advance for your help!
Hi Ellis, this is technically not correct, as the existing EIN is registered to you as an individual (Sole Proprietorship) and having the LLC as a trade name is also not correct. Although you can write a letter to the IRS requesting the change, it’s probably easier to cancel the EIN and then get a new one. As a foreigner I’m assuming you don’t have an SSN or ITIN. If so, you can follow the instructions here and mail or fax Form SS-4 to the IRS: how to apply for EIN without SSN or ITIN. Hope that helps!
Hi Matt,
Thank you for all of your useful information and your time. It is greatly appreciated! I was hoping that Ellis’ reply would answer my question but I am still not clear and worried about filing wrong.
I have my Articles of Organization for my LLC. On the EIN form, should the business name go on line 1 and then my name and SSN goes on line 7a&b?
Hi Carol, you’re very welcome! Thank you for your nice comment :) Yes, you are correct. The LLC name goes in #1 of Form SS-4 and your name and SSN go in 7a and 7b, since you are the EIN Responsible Party. As an FYI, although you can apply for an EIN with Form SS-4, if you have an SSN (or ITIN), it’s easier to apply for an EIN for your LLC online. Hope that helps!
Hi Matt
I’ve recently started an online business and i got my EIN before deciding to apply for my LLC. I found your youtube video stating that it should not be done that way and now I’m worried. I did have to put in my EIN number when applying for my LLC. Should I be okay? How do i find out if my EIN is properly associated with my LLC? Your help would be greatly appreciated!
Heidi
Sorry I miss spoke (typed). I did not put my EIN number in for my LLC. I put it in for my sales tax license.
Thanks.
Hi Heidi, apologies for the slow reply. Did the state approve your LLC filing? Does your EIN Confirmation Letter have the same name as your LLC? If so, then you’re all good. Yes, you’re supposed to do the LLC first (wait for approval), then obtain the EIN… but if you got the EIN first and the LLC was approved second, it still has the exact same effect. The IRS doesn’t check to make sure the LLC exists first.
Thank you for the reply! Yes the state approved my LLC filing. But I see now that the letter I got from the IRS with my LLC name has an EIN number on it which is dated 12-26, but I also recieved a notification thru LARA Department of licensing and affairs on January 4th that i have my llc but the id number they have on it is different than the ein i was issued. ‘Im confused. Did they issue me a new ein or is the id number something different?
Hi Heidi, the ID Number from LARA is not the same thing as your EIN. Your EIN comes from the IRS. Your Michigan LARA ID Number is issued by LARA and is another way they keep track of businesses in the state. Hope that helps.
Is it okay to create an LLC but not file for an EIN?
Thanks!
Mike
Hey Mike,
Curious, why would you not want to get an EIN for your LLC?
Your LLC is required to get an EIN if:
– You have a Multi-Member LLC
– Your LLC is taxed like an S-Corporation
– Your LLC is taxed like a C-Corporation
– Your LLC will have employees (for withholding, payroll, and employment taxes)
– Your LLC will withhold income (non wages) for a non-resident alien (an individual who is not a US citizen or a US resident alien)
– Your LLC has a retirement account/pension/SEP/Keogh
– Your LLC need to file federal excise taxes
– Your LLC needs to file alcohol, tobacco, or firearms taxes
If you have a Single-Member LLC and none of the above apply, your LLC isn’t required (by the IRS) to get an EIN:
For federal tax purposes, if you have a Single-Member LLC that will be taxed in its default status (taxed as a Sole Proprietorship) AND your LLC falls outside of the requirements mentioned above, your LLC doesn’t need an EIN and you can just use your SSN on your federal tax returns. However, there are reasons outside of reporting federal taxes with the IRS where a Single-Member LLC may still need to get an EIN:
• Some states and local governments (county, city, township, etc.) may require an EIN for certain tax returns and payments.
• Some business licenses and permits may require your LLC to have an EIN.
• When opening up an LLC bank account for a Single-Member LLC, even though the IRS doesn’t require an EIN (again, only if your LLC falls outside of the requirements mentioned above), most banks will still require an EIN for your LLC to open an account. We did some research on this however and found that approximately 10-20% of banks we spoke with will still be able to open an LLC checking account for a Single-Member LLC using the owners’s SSN (and not requiring an EIN).
As a final note, even if your Single-Member LLC doesn’t need an EIN with the IRS right now, if you change your tax status with the IRS at any point (by electing S-Corp or C-Corp taxation or by adding a member to your LLC [and therefore becoming an LLC taxed as a Partnership]), you will need to apply for an EIN.
Hope that helps!
Hello I have a partnership business with my mom and aunt. We filed for an ein first then 4yrs later I filed for a llc. Do we need a new ein and I’m the registered agent do I need to add them on as well?
Hi Enjoi, yes, all Multi-Member LLCs need to obtain an EIN from the IRS. The EIN you have from before is not attached to this new LLC. And it doesn’t matter who the Registered Agent is. It matters who the LLC Members (owners) are. Hope that helps.
Ok so we need to obtain a new ein? What about our bank acct with the
old ein would that be affected?
That bank account is likely for your Partnership, not your LLC. Now, your LLC is taxed as, but it is not a Partnership. There’s a big difference. You’ll want to open a new bank account for your new entity or ask the bank if the account owner information can switched from your Partnership to your LLC.
So basically we need to apply for a new ein for the LLC. And see if the bank will switch our account to a LLC acct since the owners are still the same. Or should I close the LLC and reopen it with a new EIN
Yes, correct, you’ll need a new EIN for your LLC. Hope that helps.
Hi Matt,
I am thinking of setting up a consulting LLC where I am the principal and only member. Since income is reported on my personal tax return as a pass through, do I need an EIN or can I simply use my SSN?
Hey Ian, I just replied to this a few minutes ago ;) Please see my reply to Michael. I believe it’s just a few up from your comment.
Hi Matt,
I just finished filing my EIN and received a hint to file a 1128 form to adapt, change or retain a tax year. Do you know why I would receive something like this? And thank you so much for this wonderfully informative university.
Hi Tracy, you’re very welcome. Glad you are getting value from the site :) What do you mean by “hint”? And who sent you this letter? Did it come from the actual IRS? It doesn’t like it did.
Hi Matt,
Yes, it came from the IRS as I completed the form. It appeared after I placed the month and year when I will start my business.
Hi Tracy, it may have just been a note about changing an LLC’s tax year (if needed). You shouldn’t need to file Form 1128 though. The tax year should just be the calendar year by default. Just in case you did something incorrect during the EIN application though, I recommend calling the IRS business line at 800-829-4933 and giving them your EIN. Then ask to make sure your LLC is running on the calendar year (January 1st to December 31st). It should be that way, but it’s best to call and double check. They open at 7am during the week. The earlier you call, the shorter the wait time. Hope that helps!
Hope that helps.
Will do and thanks again.
You’re welcome Tracy :)
Hi Matt,
I really appreciate what you are doing with LLC University. I have learned a lot about the formation of LLC and the necessary steps that are required for the formation of one.
I have one question about registering for an EIN number, I have filed the LLC in Delaware, but since I am running most of my business in California, I registering my LLC in California as well. I would like to know if I would need 2 EINs in this case or should register for 1 EIN as a company in Delaware and that would cover the entire company.
I really appreciate your help and your good work.
Regards,
Udit
Hi Udit, thanks for the kind words! You technically only have one legal entity, that’s a Delaware LLC. The Delaware LLC is simply authorized to do business in California as a result of your Foreign LLC filing. You just need 1 EIN. Hope that helps.
Hello
I was recently remarried and setup a new LLC in my married name. I have not changed by name with the SSA yet but need to get an EIN for the business. Should I wait until I change my name to my new name since is on the LLC articles or can I apply for it now under old name and change name with irs later
Hi Connie, you can apply for the EIN now using your current name. You’ll be the Responsible Party for the EIN. Once your name is changed, you can file IRS Form 8822-B and change the Responsible Party to your new name. Hope that helps.