Do LLCs Need an EIN?
Short answer: It depends on your LLC structure and what you plan to do with it.
Longer answer: The IRS has specific rules about when an EIN is required versus when it's optional. Let's break it down.
When an EIN is REQUIRED for Your LLC
You must have an EIN if your LLC:
- Has more than one member (multi-member LLC)
- Has employees or plans to hire
- Files excise tax returns
- Withholds taxes on income (other than wages) paid to a non-resident alien
- Has a Keogh plan
- Is involved in trusts, estates, or certain nonprofits
When an EIN is OPTIONAL (But Recommended)
For a single-member LLC with no employees, you can technically use your personal SSN for tax purposes. However, most business owners still get an EIN because:
- Privacy - Use your EIN instead of SSN on W-9 forms
- Banking - Many banks require an EIN to open a business account
- Professionalism - Vendors and clients expect it
- Separation - Keeps business and personal finances clearly separated
- Future-proofing - You'll need one if you ever hire employees
Single-Member LLC: EIN Requirements
A single-member LLC is treated as a "disregarded entity" by the IRS. This means:
| Situation | EIN Required? |
|---|---|
| No employees, using SSN for taxes | No |
| No employees, want business bank account | Usually yes (bank requirement) |
| Planning to hire employees | Yes |
| Filing excise taxes | Yes |
Our recommendation: Get an EIN anyway. It's free from the IRS and protects your personal SSN.
Multi-Member LLC: EIN Requirements
Multi-member LLCs are taxed as partnerships by default. An EIN is always required because:
- You must file Form 1065 (Partnership Return)
- Each member receives a Schedule K-1
- The partnership needs its own tax identification
No exceptions here - if you have a multi-member LLC, you need an EIN.
How to Get an EIN for Your LLC
What You'll Need
Before applying, gather this information:
- Legal name of the LLC (exactly as registered with your state)
- Trade name / DBA (if different)
- Mailing address
- State where LLC was formed
- Date LLC was formed
- Name and SSN of the "responsible party" (usually a member/manager)
- Reason for applying
Application Options
| Method | Timeline | Who Can Use |
|---|---|---|
| Online (IRS) | Immediate | US persons with SSN |
| Fax | 4-7 days | Anyone |
| 4-6 weeks | Anyone | |
| Through Us | 24-48 hours | Anyone |
Step-by-Step Process
- Complete IRS Form SS-4 - This is the EIN application form
- Submit to IRS - Online, fax, or mail
- Receive your EIN - Immediately online, or via fax/mail
- Save your confirmation - The IRS sends a CP 575 notice
Common Mistakes to Avoid
Using the wrong legal name Your LLC name must match exactly what's registered with your state. "ABC Company LLC" is different from "ABC Company, LLC"
Incorrect entity type Select "LLC" as your entity type. If you've elected S-Corp taxation, you still apply as an LLC first, then file Form 2553.
Wrong responsible party The responsible party must be an individual (member or manager), not the LLC itself.
After You Get Your EIN
Once you have your EIN:
- Save your CP 575 notice - This is your official IRS confirmation
- Open a business bank account - Most banks require the EIN letter
- Update your records - Use EIN on invoices, W-9 forms, etc.
- Set up payroll (if hiring) - You'll need the EIN for tax withholding
Need Help?
Getting an EIN is straightforward, but we can make it even easier. We prepare and submit your application, handle any issues, and deliver your EIN within 24-48 hours.