Should I get an EIN Before I Form an LLC (or After)?

Note: EIN stands for Employer Identification Number. It’s also called Federal Tax ID Number or FEIN. However, we’ll just refer to it as EIN throughout this lesson. Also, if you’re still learning about LLCs, please also read your LLC’s EIN.

It’s best to get an EIN for your LLC after your LLC is approved by the state. The reason for this is that you want to make sure your LLC name is approved before “attaching” an EIN to it.

Also, in the IRS’s EIN online application, you’ll need to enter your LLC’s date of formation, so naturally, this information would be confirmed after your LLC is formed.

However, you can also get an EIN for your LLC before your LLC is approved, but we do not recommend doing this.

We get lots of questions from people who obtained their EIN first, are in the process of forming their LLC, and are scratching their heads, wondering, “Did I screw this up?”

Here’s what’s interesting:

The IRS doesn’t check to see if your LLC is in existence before issuing your EIN.

So if you’ve already obtained an EIN (but haven’t formed an LLC yet), let’s look at 2 scenarios to determine whether or not you need to cancel your existing EIN.

Scenario 1: EIN obtained before LLC approved & LLC gets approved

Let’s say the IRS issues an EIN for the company “Rob’s Grub Shack LLC” (before the LLC actually exists).

Then a week later, you file an LLC called “Rob’s Grub Shack LLC” and it’s approved by the state.

There is nothing you need to do. You can leave things as-is with the IRS since the names match up and there were no issues with your LLC filing.

Scenario 2: EIN obtained before LLC approved & LLC gets rejected

Let’s say the IRS issues an EIN for the company “Super Cycles LLC” (before the LLC actually exists).

Then a week later, you file an LLC called “Super Cycles LLC” and it gets rejected by the state.

Note: Depending on the state where you’re forming an LLC, “Super Cycles LLC” could be rejected for a few reasons. For example, most common is that a “Super Cycles LLC” or “Super Cycles Inc.” already exists. Second most common would be that the name is deceptively similar to an existing business name. For example, if “Super Cycle LLC” already exists, most states will reject your filing. For more tips on choosing an LLC name, please see how to choose your LLC name.

If your LLC was rejected because of its name, you’ll need to re-file using a different LLC name.

That means you now have an EIN “attached” to the wrong LLC.

Tip: Most states will issue a refund if your filing is rejected, but some will not. Make sure to properly search your LLC name before filing your LLC. And if you need to get a refund for a rejected filing, call your Secretary of State’s office for instructions.

Here’s what you’ll need to do

1. Cancel the first EIN
2. Re-file your LLC (fix the issues)
3. Wait for the LLC to be approved
4. Apply for a new EIN (how to get an EIN for LLC)

You don’t need to wait for your Confirmation Letter

If you’re going to cancel an EIN, the IRS will send you a Confirmation Letter once they’ve done so.

You don’t have to wait for the Confirmation Letter to arrive before applying for your LLC’s new EIN.

References

https://www.irs.gov/pub/irs-pdf/p1635.pdf
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers
https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein

Matt Horwitz

Founder & Educator at LLC University

Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! We teach people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your entrepreneurial journey.

11 Comments

Tim September 15, 2018
This was very valuable information. It answer every what if question I have thanks
reply
- Matt Horwitz October 17, 2018
  You’re welcome Tim!
  reply
Sally October 8, 2018
I’m filling out my docketing statement and it asks for my ein, however I didn’t create one yet, what should I do?
reply
- Matt Horwitz October 25, 2018
  Hi Sally, within the Pennsylvania Docketing Statement, you can write “applied for”. You’ll file your PA LLC Certificate of Organization and Docketing Statement, and then wait for your LLC to be approved. Once approved, you can then get an EIN for your LLC. Hope that helps!
  reply
LEON October 10, 2018
I HAVE ALREADY GOTTEN AN EIN NUMBER, WHAT DO I DO TO BECOME LLC I AM SO CONFUSED WITH THIS!!!!
reply
- Matt Horwitz October 25, 2018
  Hi Leon, that EIN is likely attached to you or your DBA (as a Sole Proprietorship). If you are forming an LLC, you’ll want to form your LLC first, wait for it to be approved, and then get a new EIN for your LLC. Hope that helps.
  reply
Patricia November 8, 2018
I made the mistake of filing for an EIN first, and then the LLC. I filed the EIN without LLC in the name. The LLC was approved by the state with LLC in the company name.
Do I need a new EIN to include the LLC in the name?
reply
- Matt Horwitz November 23, 2018
  Hi Patricia, yes, I’d apply for another EIN for your LLC. By state law, your LLC name must have a designator (such as “LLC”) at the end. You’ll want your EIN Confirmation Letter (CP 575) to match that. After you apply for a new EIN, you can cancel your first EIN. Hope that helps!
  reply
lou Pedrosa November 14, 2018
If change the effective date when forming a South Carolina to January first because we are two months before the end of the year , am I able to apply for EIN now?
reply
- Matt Horwitz November 23, 2018
  Hi Lou, yes, you can file an LLC with an effective date of January 1st and apply for your EIN before then. In the IRS EIN Online Application, it’ll ask what the “LLC start date” of the business is. You’ll select January 2019. Hope that helps.
  reply
Javier Sanchez December 12, 2018
Im oppening a vape shop in 2019 in Puerto Rico, but i need the EIN for suppliers research purposes but i dont have an LLC yet specially because is hard to get an llc in PR can i do a sole propietor for the EIN?
reply