How to Get an EIN (Employer Identification Number) for Your LLC

The application process to get an EIN for your LLC is easy, but the preparation is tricky, as the IRS requires specific information to approve your application. 

Fortunately, most of it is available since you register your LLC before applying.

In this post, I’ll explain the information you need, why the IRS might deny your application, and how to ensure that doesn’t happen.

So, when you finish reading, you’ll know how to get an EIN for your LLC and avoid annoying delays.

What is an EIN?

Government abbreviations can be confusing, so let’s begin with some clarification.

An EIN is a FEIN (federal employer identification number); they only differ when you use EIN to refer to your state tax identification number.

The IRS issues an EIN upon request to identify your business for tax purposes. You’ll also need an EIN to hire employees, file your LLC tax returns, apply for specific licenses and permits, get a business credit line, and sometimes open a business bank account.  

Who needs an EIN?

A single-member LLC without employees and no excise tax liability doesn’t need an EIN. Instead, like with a sole proprietorship, the owner uses their Social Security number for tax filing. 

But regardless of your LLC type, you must get an EIN if you: 

• Have employees
• Operate as a multi-member LLC, partnership, or corporation
• Are liable for excise tax by selling alcohol, tobacco, fuel, and other goods and services
• Withhold taxes on income for nonresident aliens
• Have a Keogh plan or solo 401(k) retirement plan
• Acquire or inherit a business
• File for bankruptcy
• Are involved with specific types of organizations like trusts, estates, nonprofits, or farmers’ cooperatives

Benefits of an EIN

Not every LLC needs an EIN, but getting one can benefit your business in so many ways, such as:

• File business taxes and avoid tax penalties: Having an EIN simplifies tax filing and helps you avoid fines by keeping personal and business finances separate.
• Prevent identity theft: Using an EIN instead of your Social Security Number (SSN) minimizes identity theft risk. Safeguarding your personal information and reducing the chances of fraudulent activities.
• Adds credibility to your business: An EIN can enhance the business credibility of single-member LLCs, freelancers, and contractors, as it shows you run a legitimate venture rather than a side project.
• Speed up business loan applications: Lenders often require an EIN to evaluate the reliability and trustworthiness of your business; having one in hand can speed up your loan application process.
• Established business credit: An EIN can help establish a separate business credit profile and a solid credit history for your business, leading to more funding options and better interest rates.
• Open a business bank account: Not all banks require an EIN to open one, but many do; having an EIN ensures you can pick the right bank for you.
• Build trust with vendors: Vendors and suppliers often prefer doing business with people who have an EIN, as it shows your legitimacy as a business entity.
• Hassle-free employee hiring: You might not have employees now, but hopefully, you’ll need them later; having an EIN allows you to set up a payroll system without delays.

How to get an EIN: Step-by-Step

Before applying for your EIN, you must form your LLC with your secretary of state and ensure your registered business name is available nationwide. 

If your preferred business name isn’t available, you can register your LLC using a formal name and do business using a DBA (doing business as).   

Next, you must ensure you’re eligible for an EIN and have the correct information.

For example, only businesses operating in the United States with a valid Taxpayer Identification Number (like a Social Security Number) can apply. Non-US citizens can get an EIN but must first apply for an SSN.

You’ll need the following information to get an EIN: 

• The legal name of the entity: Your LLC`s legal name as it appears on official documents.
• DBA name (if applicable): If you operate under a different name than your legal name, you may need to provide your “doing business as” (DBA) name.
• Mailing address: Your LLC’s registered agent’s address, where you receive official correspondence from the IRS.
• Physical address (if different): If your business has a physical location separate from your registered agent’s address.
• Entity type: The type of LLC you registered.
• Reason for applying: Specify the reason you are applying for an EIN, such as starting a new business, hiring employees, opening a bank account, or for tax filing purposes.
• Responsible party information: Provide the details of the individual accountable for the entity’s operations and finances, including their name and social security number (SSN).
• Date the business started: Your official LLC starting date or when you bought an existing business.

Once you know you’re eligible to get an EIN and have the necessary information, you can begin the application process.

Now let’s look at how to get an EIN for your LLC. Your first step is choosing how you’ll apply:

Step 1: Choose how you’ll apply for your EIN

• Online: The easiest way to get an EIN for your LLC is to apply online using the online EIN application on the IRS website. You’ll receive your EIN immediately.
• Mail: Download and complete Form SS-4 and mail it to “The IRS, EIN Operation, Cincinnati, OH 45999.” This takes, on average, 4-5 weeks.
• Fax: Compete Form SS-4 and send it to (855) 641-6935. This takes, on average, 4 working days.
• By telephone (international applicants only): Non-US residents must apply by calling the IRS at 267-941-1099, Monday to Friday, 6.00 am to 11.00 pm (Eastern time).

Step 2: Select your entity type

Here’s where you’ll choose the type of LLC you have, for instance, (single or multi-member LLC), provide how many members there are, and identify the state where you registered your business. 

Step 3: Designate your responsible party

Next, the IRS will ask about the designated party applying for the EIN.

Usually, it’s one of the LLC’s founding members. But you can use an LLC manager responsible for handling your business’s assets and funds or designate a 3rd party. 

Whomever you choose must have a Tax Identification Number (like an EIN, ITIN, or SSN). And if they change their address, you must inform the IRS within 60 days. 

Step 4: Provide the correct information

When applying online, you can’t save your information or return to a previous page, and your session expires after 15 minutes of inactivity, so ensure you have the information you need. 

Here’s a quick recap:

• Type of entity, such as a foreign, single, or multi-member LLC
• The type of business you’re in
• Your business name
• The name and identification number of the person applying
• Mailing and physical address
• State of registration
• Your reason for applying for an EIN
• Your LLC’s formation date
• Number of employees

Step 5: Choose how to receive your EIN confirmation

The IRS will ask how you want to receive your EIN during the online application process.

You can receive it online for immediate download and print options or opt for mail delivery. 

If you apply by mail or fax, that’s how you’ll receive your EIN confirmation letter.

IRS EIN Assistance: 

You can find the instructions for completing the Form SS-4 on the IRS website. 

And if you’d like to speak with someone, call the IRS “Business and Specialty Tax Line” at 1-800-829-4933 from 7:00 am to 7:00 pm local time, Monday through Friday.

Troubleshooting: Why the IRS might deny your application and how to fix it

Applying for an EIN is usually a straightforward process, but there are reasons why the IRS will reject your application.

Let’s look at what they are and how to fix them: 

Name distinguishability:

The IRS can deny your EIN application if your business name is too similar to an existing entity. You avoid this by researching the United States Patent Trademark Office (USPTO) database before registering your LLC with your state. 

Responsible party conflict:

The IRS will also deny your application if the person applying for your EIN has already been approved for another online application. In this case, either designate someone else or apply by mail or fax to fix this.

Reference 101 error:

A Reference 101 error occurs from name conflicts or missing information when applying online. To fix this problem, ensure your business name is available and you have all the necessary information at hand.

Existing EIN:

You can’t apply for a 2nd EIN for the same business, and once the IRS assigns an EIN to an LLC, it’s permanent.  

But you must apply for a new EIN if you change from a sole proprietorship to an LLC.

Conclusion

And now you know how to get an EIN for your LLC.

Easy, right?

Even so, take it slow and follow the steps to avoid clerical errors that could result in denial, especially when applying online.

And select the right entity type, have your information handy, and ensure whoever’s applying is eligible.

FAQ