Does an LLC Need an EIN?

What an EIN Is and Who Issues It

An Employer Identification Number (EIN) is a nine-digit number the IRS assigns to a business for federal tax filing and reporting. It works like a Social Security number for your business: banks, the IRS, and other agencies use it to identify your LLC on tax returns, payroll filings, and account applications. Only the IRS issues EINs, and it never charges a fee for one.

When an LLC Must Have an EIN

The IRS requires an EIN if your LLC does any of the following:

• Has more than one member (the IRS taxes a multi-member LLC as a partnership by default, and partnerships must have an EIN)
• Has employees, including the LLC's own owner if paid as a W-2 employee
• Pays employment, excise, or alcohol, tobacco, and firearms taxes
• Withholds taxes on income, other than wages, paid to a non-resident alien
• Elects to be taxed as a corporation or S corporation instead of its default classification

If any of these apply, you need an EIN before you file your first return or make your first payroll deposit.

When a Single-Member LLC Can Use a Social Security Number Instead

A single-member LLC that the IRS treats as a disregarded entity, meaning its income and loss pass through directly to the owner's personal tax return, does not need an EIN if it has no employees and no excise tax liability. In that case, the owner can file taxes using their own Social Security number. That said, the IRS notes that most new single-member LLCs end up getting an EIN anyway, usually because a bank requires one to open a business account, or because the owner plans to hire employees later.

How to Apply for an EIN

You apply using IRS Form SS-4, most commonly through the IRS's free online EIN application, which issues the number immediately upon completion for U.S.-based applicants. You can also apply by fax or mail if you prefer a paper form, though those methods take longer. International applicants without a U.S. address apply by phone. There is no cost at any step; the IRS states plainly that you can get an EIN for free directly from the agency.

An EIN Application Is Separate From Your State LLC Filing

Forming your LLC with the state and getting an EIN from the IRS are two different filings with two different agencies. The state issues your Articles of Organization; the IRS issues your EIN. You generally apply for the EIN after your LLC is approved by the state, since the IRS application asks for your LLC's legal name and formation date. Neither filing substitutes for the other, and you need both an approved LLC and a tax ID to run most day-to-day business operations like opening a bank account or filing a tax return.

What You Need Before You Apply

The EIN application asks for basic information about your LLC: its legal name exactly as filed with the state, its formation date, its mailing address, the state it was formed in, and the name and Social Security number or Individual Taxpayer Identification Number of the "responsible party," the person who controls or owns the LLC. Have your state-approved Articles of Organization in hand before you start, since the application can reject a name that doesn't match your state filing exactly.

International Owners Can Still Apply

An LLC owner without a Social Security number or U.S. address can still get an EIN. The IRS online application is limited to applicants with a U.S. taxpayer identification number, but an international owner can apply by phone, fax, or mail using Form SS-4 instead, listing "foreign" where the form asks for an SSN or ITIN. This takes longer than the instant online process, so plan ahead if you need the EIN to open a bank account or sign a contract on a deadline.

Banks and Vendors Often Require an EIN Even When the IRS Doesn't

Even if you qualify to use your Social Security number for IRS purposes, most banks require an EIN to open a business checking account, since they generally won't open one under a personal SSN tied to a business name. Some vendors, landlords, and state tax agencies ask for an EIN on applications too. For that reason, many single-member LLC owners get an EIN even when the IRS doesn't strictly require one, mainly to keep business and personal finances separate.

Getting an EIN Doesn't Cost Anything, From Anyone

The EIN application is free directly from the IRS. If a formation service or website charges a separate fee specifically to "obtain your EIN," you're paying for someone to fill out the same free form on your behalf, not for anything the IRS charges. You can always apply yourself at no cost.

Update Your EIN Record When Details Change

If your LLC changes its responsible party, such as when a managing member changes, the IRS requires you to report that change using Form 8822-B within 60 days. Keeping this current matters if the IRS or a bank needs to verify who controls the LLC.

Tax Classification Elections Require an EIN First

If you plan to elect S corporation tax treatment for your LLC, you need an EIN before you can file the election. This is a tax decision with real tradeoffs around payroll and self-employment tax, so talk to a tax professional before choosing a tax classification for your LLC.

One EIN Per LLC, Even if You Form More Than One

Each LLC you form, even if you own all of them, needs its own EIN; you cannot reuse one LLC's EIN for a second, separately formed LLC. If you plan to form more than one LLC in the same day, remember the IRS limits each responsible party to one EIN issued per day, so you may need to spread multiple applications across more than one day.

Losing or Misplacing Your EIN

If you lose your EIN confirmation letter, you don't need to reapply. You can find your EIN on a previously filed tax return, on the original confirmation notice the IRS mailed or emailed when you applied, or by calling the IRS Business & Specialty Tax Line directly to have it verified over the phone.