Texas Federal Tax ID Number (EIN)

How to Get an EIN for a Texas LLC

How to form an LLC in Texas
This Quick Start Guide is a brief overview of how to form an LLC in Texas.

Detailed Lessons:

5. EIN Number ← you are here
6. Franchise Tax
7. Licenses and Permits
8. Taxes

 

Texas LLC costs:
State filing fee: $300
Annual franchise tax: $0 (for most LLCs)

Need help?
Hire a reliable service to form your Texas LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

This lesson is about getting a Federal Tax ID Number (aka EIN) from the IRS. Please don’t confuse this with your Texas LLC’s “Taxpayer Number”. I know the names are nearly identical, but your LLC’s EIN is a 9-digit number that comes from the IRS. Your Taxpayer Number is an 11-digit number that comes from the Texas Comptroller. You’ll receive your Taxpayer Number on the Welcome Letter from the Comptroller.

What is an EIN Number?

An EIN Number stands for Employer Identification Number and it will be issued by the IRS to your Texas LLC.

An EIN is to your Texas LLC what a Social Security Number is to a person. It helps the IRS identify your business for tax and filing purposes.

Having an EIN for your Texas LLC allows you to open a separate bank account under the LLC’s name, apply for certain licenses and permits, and handle employee payroll (if applicable).

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 Texas LLC with the IRS.

EIN Synonyms

Your Texas LLC’s EIN may be called different names. They all mean the same thing though.

Similar terms for an EIN include:

  • 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

Benefits of having an EIN for your Texas LLC

Having an EIN for your Texas LLC enables you to do the following:

  • Open an LLC business bank account
  • File taxes at the federal, state, and local level
  • Handle employee payroll (if applicable)
  • Obtain business lines of credit or business loans
  • Get a business credit card for your LLC
  • Apply for business licenses

Wait for your Texas LLC to be approved

Wait for your Texas LLC to be approved by the Secretary of State before applying for your EIN. Otherwise, if your LLC filing is rejected, you’ll have an EIN attached to a non-existent LLC.

However, if this does happen, you can always cancel your EIN and then apply for a new one. And you don’t have to wait for your cancellation to go through before applying for a new EIN.

Applying for an EIN for your LLC is free ($0)

Applying for an EIN for your Texas LLC is completely free.

The IRS doesn’t charge anything for applying for an EIN.

Don’t have an SSN or ITIN?

If you’re a foreigner who formed a Texas LLC, you can still get an EIN without having an SSN or ITIN.

You just can’t get your EIN online. Instead, you 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.

(related article: How to apply for an ITIN)

EIN Phone Application

You may have read that you can apply for 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 outside of the United States).

If you’re a foreigner and you formed an LLC in Texas, we have instructions below on how to apply for your EIN.

EIN for Husband and Wife LLC in Texas

Because Texas is a community property state, a 2-member LLC that is owned by a husband and wife 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 Texas 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

The EIN Responsible Party is a person that goes on file with the IRS when you apply for an EIN for your Texas LLC.

Think of the Responsible Party as the LLC’s “contact person”. The IRS will send your LLC’s mail and correspondence to this person.

If you have a Single-Member Texas LLC:

Then you will be the EIN Responsible Party.

If you have a Multi-Member Texas LLC:

One of the LLC Members will be the EIN Responsible Party.

The IRS just wants one person as the EIN Responsible Party. They don’t want all the Texas 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, you should list the LLC Member that will take on the responsibility of making sure the LLC’s taxes are handled properly.

If your Texas 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 a Texas LLC that is owned by another company and you try to get an EIN online, you’ll just get an error message (EIN reference number) at the end of the application.

Learn more:

To learn more about who can be the EIN Responsible Party for your Texas LLC, please see EIN Responsible Party for LLC.

How is a Texas LLC taxed?

By default, a Texas LLC is taxed based on the number of Members (owners).

Meaning, an LLC is just taxed in the default status set by the IRS and the LLC doesn’t elect to be taxed as a Corporation (either a C-Corporation or an S-Corporation).

(related article: how are LLCs taxed)

The default tax status for a Texas 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 Texas Multi-Member LLC is Partnership, meaning the IRS taxes the LLC like a Partnership.

If instead, you want your Texas LLC taxed as a C-Corp, you’ll first apply for an EIN and then later file Form 8832. If you want your LLC taxed as an S-Corp, you’ll first apply for an EIN and then later file Form 2553.

If you choose to have your Texas LLC taxed as a 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 Texas LLC

Below you will find 3 different sets of instructions:

1. If you have an SSN or ITIN, use the EIN online application

We recommend applying for an EIN online for your Texas LLC if you have an SSN or ITIN.

This is the easiest filing method and it has the fastest approval time.

We have instructions here:
How to apply for an EIN online

2. If you apply 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 an EIN 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 Texas LLC. You just can’t apply for an EIN online.

You will need to mail or fax Form SS-4 to the IRS instead and you must fill the form out in a certain way.

We have instructions here:
How to get an EIN without an SSN or ITIN

EIN Confirmation Letter (EIN Approval)

Once the IRS issues an EIN for your Texas LLC you will receive your official approval, known as an EIN Confirmation Letter (CP 575).

The method you used to apply for an EIN will determine how you receive your EIN Confirmation Letter.

If you applied 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 sent Form SS-4 by fax:
The IRS will fax you back your EIN Confirmation Letter within 4 to 7 business days.

If you sent 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:

EIN Confirmation Letter (CP 575) for LLC

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 Texas LLC.

LLC Business Bank Account

After getting your EIN, you can then open a separate business bank account for your Texas LLC.

Banks usually ask for the following documents to open a Texas LLC business bank account:

  • EIN Confirmation Letter
  • LLC Approval (stamped and approved 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 in Texas ahead of time before visiting them in person. It’s also a good idea to ask if they have monthly fees on their “basic” business checking accounts since there are a number of banks that don’t have any 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 to keep in mind when opening a U.S. bank account for your Texas LLC that we have listed here: Non-US resident opening U.S. bank account for an LLC

Note: You will need to open a bank account in Texas since that is where you formed your LLC.

Next Step: Texas Franchise Tax

Once the IRS has issued an EIN for your Texas LLC, you can then proceed to the next lesson: Texas LLC Franchise Tax.

IRS Contact Information

If you have any questions, you can call the IRS at 1-800-829-4933. Their office hours are 7am – 7pm, Monday through Friday.

We recommend that you call the IRS early to avoid long holding times.

Matt Horwitz
Founder & Educator, 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! LLC University® teaches people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your business journey.
Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

26 Comments

  1. Herb April 21, 2017

    A thank you doesn’t seem enough for all this information you have provided! But seriously, Thank You! And this almost covers everything, I mean if you were to fund the LLC’s to, then it would be complete. Joking of course!

    reply
    • Matt Horwitz April 22, 2017

      Hey Herb, we really appreciate your comment! Very happy to hear we could help :)

      reply
  2. Matthew June 2, 2017

    This is a great resource for anybody starting a business. I have one question though. At the bottom of the EIN confirmation letter, there is a perforated line with a section asking you to detach and mail back to them reading: ” return this part with any correspondence so we may identify your account. Please correct any errors in your name or address.”. This was not in the video and I was wondering if it is necessary and what they mean by any correspondence? Clarification on this would be much appreciated. Thank You!!!

    reply
    • Matt Horwitz June 2, 2017

      Hey Matthew, glad you found this helpful! And great question! That bottom portion should be used if you need to contact the IRS or send them a letter. You do not need to worry about that now, so just leave the EIN Confirmation Letter as-is. If you ever do need to mail it to them, we recommend making a copy. Hope that helps. Let us know if you have any other questions.

      reply
      • Matthew June 4, 2017

        Thank You!

        reply
        • Matt Horwitz June 5, 2017

          You’re welcome Matthew!

          reply
  3. ROZA July 24, 2017

    HI,

    I used to have an LLC in Colorado, which I closed.
    I am now opening a new LLC in Texas. I already have EIN which I obtained for the Colorado LLC.
    Do I need to apply for the EIN for my new Texas LLC?

    Thank you!

    reply
    • Matt Horwitz July 24, 2017

      Yes since the existing EIN is “attached” to the old LLC. Form the new LLC in Texas, then apply for a new EIN number.

      reply
  4. Zo March 17, 2018

    Matt,

    Can you provide instructions on how to get a reseller certificate for Texas?

    reply
    • Matt Horwitz March 27, 2018

      Hi Zo, at this time we don’t cover reseller certificates, however you can find the application on the Texas Comptroller’s website: Texas Sales and Use Tax Forms. Click on “Resale and Exemption Certificates” then click on “01-339, Texas Sales and Use Tax Resale Certificate / Exemption Certification (PDF)”. If you have any questions you can call the Texas Comptroller (Texas Comptroller contact us page). I recommend calling shortly after they open at 8am to avoid longer hold times. Hope that helps :)

      reply
  5. Abby March 20, 2018

    Your website is very helpful. We live in Texas and have rental properties in Texas, California, and Colorado. Is a Series LLC an advantageous business formation for our situation?

    reply
    • Matt Horwitz March 27, 2018

      Hi Abby, that’s great to hear! We don’t have an opinion on Series LLCs yet, so can’t speak about them. However, if you have rentals in various states your LLCs should either be formed in those states (as in a Domestic LLC formation), or your LLCs should be registered in those states (as in Foreign LLC registrations), or you could also form Domestic LLCs in the states where the properties are located and then have those LLCs owned by a parent LLC, say setup in Texas, your home state.

      (related article: Domestic LLC vs Foreign LLC)

      I’m not sure how a Series LLC would come into play since you’ll likely need to register each Series LLC Unit in the state where it’s doing business (the state where the property is located). I recommend speaking with a few real estate attorneys and tax professionals regarding the best setup. Also if you already own the properties in your name, you’ll need to transfer title to your LLCs. I also recommend reading when to form an LLC for real estate. Hope that helps.

      reply
  6. Jordan March 21, 2018

    Good evening, Matt

    Thank you for your information about cancelling my previous EIN and starting a new one,
    My new question is about filling out the new EIN.

    If I am the only governing person (manager-managed) in the LLC Formation documents but there’s another member that was included in the Operating Agreement, should I say that there are two people in the LCC on the EIN?
    On the EIN, it asks how many “members” are in the LLC. Would it be both of us? Just me?

    Thank you,

    reply
    • Matt Horwitz March 27, 2018

      Hi Jordan, you have a Multi-Member LLC (2 Members) that is Manager-Managed (by you). And you filled out your Certificate of Formation correctly. Because your LLC is Manager-Managed, only Governing Persons that are Managers need to be listed (just you and not the other Member). However, as for your EIN application with the IRS (and all other purposes), you should list 2 Members since there are 2 owners. As an FYI, via your Operating Agreement, you and your partner agreed to be Members (owners), then you both agreed that you have the authority to run the day-to-day and make decisions (aka be the Manager). Hope that helps!

      reply
  7. Antonio June 2, 2018

    so after after I receive my EIN whats the next thing to do? I’m from Texas

    reply
    • Matt Horwitz June 17, 2018

      Hi Antonio, you’ll want to open an LLC bank account and determine if you need a business license and/or permit for your LLC. Speaking with an accountant would also be a good idea. Hope that helps.

      reply
  8. HMD July 19, 2018

    I have an LLC in Texas already, but wanted to know how complicated it is to change the name? Is it easier to just start a new one? We are changing the direction of our business a little, don’t want to spend another $300 if it isn’t necessary?

    reply
    • Matt Horwitz August 12, 2018

      Hey HMD, you’ll want to file a Texas LLC Certificate of Amend (Form 424). The filing fee is $150. You’ll also want to mail a letter to the IRS letting them know about the name change (include the approved Certificate of Amendment). You’ll also want to update your bank, the Texas Comptroller, and anywhere else applicable. Hope that helps.

      reply
  9. Rosie November 2, 2018

    Can I set just one LLC for the purpose of doing property management as well as having the LLC own real estate property or do I need to have two separate LLC’s?

    reply
    • Matt Horwitz November 23, 2018

      Hi Rosie, there is no requirement to do it either way. Some people like to separate the business activities for liability reasons and others just operate and own through 1 LLC.

      reply
  10. Jacob Fierro November 3, 2018

    Hello,

    Very informative. Have been looking around about how to start up my own little LLC. You have asked every question and ones I would not have thought of. I was wondering with taxes, if it would be more beneficial to put just myself or put it with my wife and I like in Qualified Joint Venture LLC.?

    Much Obliged,
    Jacob R. Fierro

    reply
    • Matt Horwitz November 4, 2018

      Hey Jacob, thanks so much! Glad to hear. You’ll need to run that question by an accountant as we don’t do deep dives into our readers’ situations. Thank you for your understanding.

      reply
  11. PK January 3, 2019

    Matt, thank you for running this website. This website is very useful to me. I just made a single member LLC in Texas but I have not registered for EIN. My question is does EIN require for my sole proprietor LLC? I do not expect to have many clients and income at this time.

    reply
    • Matt Horwitz January 6, 2019

      Hi PK, a Single-Member LLC isn’t required to get an EIN, but you’re going to need one when opening an LLC bank account. Any reason why you don’t want to get one?

      reply
      • PK January 7, 2019

        Hi Matt, I am thinking it would be easier just to use my ssn to do the taxes.

        One more questions, what is the different between Franchise Tax and Annual reporting in Texas? Are they the same or I should file them separately?

        reply
        • Matt Horwitz January 7, 2019

          I see. We’ll have a page published on this in about 1-2 weeks. They are usually referring to the same thing. The form is called Texas Franchise Tax Public Information Report. As of 2018, no tax needs to be paid unless gross receipts are greater than $1,130,000. However, a form still needs to be filed with the Texas Comptroller’s office.

          reply

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