LLC EINs
The federal tax ID your LLC needs to open a bank account, hire employees, or file almost any business tax form. How to get one free from the IRS in 15 minutes, why every LLC should have one even when not strictly required, and which formation-service EIN upsells are worth the money.
What an EIN is and isn't
An Employer Identification Number is a 9-digit number the IRS assigns to a business entity for federal tax purposes. Format: XX-XXXXXXX. It's how the IRS knows which entity is filing a tax return, running payroll, or receiving 1099s. Functionally, the EIN is to a business what the SSN is to a person.
An EIN is not a business license. It's not a state tax ID. It's not a certificate of good standing. It's not proof that your LLC exists (the Articles of Organization does that). It doesn't substitute for state-specific registrations like sales tax permits or employer withholding accounts. The EIN is specifically a federal tax identifier. State and local taxes need separate registrations.
When your LLC actually needs an EIN
Required by IRS rules
Multi-member LLCs (taxed as partnerships, filing Form 1065). Any LLC with employees (payroll tax filings). LLCs that elected S-corp or C-corp treatment (Form 2553 or 8832 both require an EIN). LLCs with a Keogh plan or certain retirement plans.
Required by practice (every bank)
Business checking and savings accounts. Merchant services (Stripe, Square, PayPal Business). Business credit cards. Business loans. Invoicing software that handles 1099s. Even a simple Chase business account requires the EIN on the application.
Required for contractors and vendors
If you hire contractors and need to issue 1099s, they'll request your EIN (not your SSN) on Form W-9. Similarly, corporate clients you work for may require your LLC's W-9 with an EIN before paying invoices. Using your SSN for business payments is frowned upon and creates privacy concerns.
Genuinely optional only for
A passive single-member holding entity with no bank account, no operations, no employees, and no need to issue 1099s or receive corporate payments. This is a narrow slice. For any operating LLC, an EIN is effectively mandatory in practice.
How to get an EIN in 15 minutes, directly from the IRS
- Have your LLC already formed first
File the Articles of Organization with your state before applying for the EIN. Some states process formation in 1 to 3 business days; others take 2 to 4 weeks. You need the LLC's legal name, state of formation, and formation date on the EIN application.
- Go to irs.gov/ein directly
Watch the URL. Many third-party services run ads for "EIN application" that look like the IRS but charge $50 to $200 for the same free process. The real IRS domain is irs.gov. Never pay a service for an EIN.
- Complete the online application
Business hours only (Monday to Friday, 7 AM to 10 PM Eastern). Entity type: Limited Liability Company. Answer questions about the LLC's state, number of members, and primary activity. The responsible party has to have a US SSN or ITIN for the online system.
- Get the EIN immediately
The EIN is issued on the final screen as a PDF confirmation letter (CP 575). Save this PDF; it's the only time the IRS produces it. Lose it and you'll need to request a replacement via Form 147-C, which takes weeks.
- Use the EIN to open the bank account
Take the CP 575 confirmation, the Articles of Organization, and your operating agreement to any business bank. The bank account is usually open within an hour once the paperwork is in order.
For non-US founders: the paper application
The IRS online EIN system requires the responsible party to have a US SSN or ITIN. Non-US residents without either must apply by paper Form SS-4. Processing is 4 to 6 weeks by mail, about 4 business days by fax to the IRS International EIN unit. The application is free but the paperwork is more demanding than the online version, and mistakes cause weeks of delay.
Formation services that specifically cater to international founders (Doola, Firstbase, Stripe Atlas) handle the paper EIN filing as part of their service, typically charging $50 to $200 extra. For non-US founders, this is usually worth the money because a miscompleted SS-4 sets you back weeks. For US residents, paying for EIN service is paying for something you can do in 15 minutes yourself.
Common EIN mistakes
- Paying a third-party service for an EIN. The IRS charges $0. Any service that prices an "EIN filing service" as a standalone add-on is overcharging for 15 minutes of work you can do yourself on irs.gov.
- Applying before the LLC is formed. The EIN application requires the LLC's state formation date. If you apply before the state accepts your Articles, you'll either have to make up a date (inviting later complications) or get rejected.
- Losing the CP 575 confirmation letter. The IRS doesn't email it, and it's the only copy you get. Save the PDF immediately and back it up. Replacement via Form 147-C takes 6 to 8 weeks.
- Using a fake or nominee responsible party. The responsible party has to be a real person with a real SSN or ITIN who has authority over the LLC. Using a nominee to hide the true owner is a false statement to the IRS and can result in penalties.
- Ignoring responsible-party updates. If the responsible party changes (new managing member, new CEO), the IRS requires Form 8822-B to update their records within 60 days. Most LLCs never file this, which creates reconciliation issues during audits years later.
- Assuming the EIN transfers in an acquisition. If you buy an LLC, the new ownership may require a new EIN depending on the structure of the transaction. Talk to a CPA before assuming the EIN continues.
- Forgetting to close the EIN on dissolution. When the LLC dissolves, file the EIN closure request with the IRS to stop automated notices. See the dissolution section for the full federal closure checklist.
What the EIN looks like on documents
Written as XX-XXXXXXX (2 digits, hyphen, 7 digits) in almost every official IRS and bank context. Some places display it without the hyphen. The first two digits historically corresponded to the IRS campus that issued the number, though this has been less meaningful since 2001 when the IRS moved to a single processing center. There's no geographic information you can derive from an EIN about where the LLC operates today.
Frequently Asked Questions
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What is an EIN?
EIN stands for Employer Identification Number, a 9-digit number issued by the IRS that uniquely identifies a business entity for federal tax purposes. Format: XX-XXXXXXX. Functionally, it's the business equivalent of a Social Security Number. Any LLC with employees, multiple members, or a separate business tax return needs one. Most LLC owners also get one even when the IRS doesn't strictly require it, because banks typically require an EIN to open a business checking account.
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Does every LLC need an EIN?
A multi-member LLC always needs one (it files Form 1065 as a partnership, which requires an EIN). A single-member LLC technically doesn't need one for federal income tax (the owner uses their SSN on Schedule C), but practically it does: every business bank account, the S-corp tax election, hiring any employees or contractors, opening merchant services, or filing 1099s all require an EIN. The only LLCs that genuinely don't need an EIN are pure passive holding entities with no operations and no bank account.
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How much does an EIN cost?
$0. EINs are free directly from the IRS. The online application at irs.gov takes about 15 minutes and issues the EIN immediately upon completion. Any third-party service charging you for an EIN is charging for paperwork you can do yourself in a quarter of an hour. If you see "EIN service" on a formation package's invoice, you're paying for nothing you couldn't do yourself. It's free.
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How long does it take to get an EIN?
The online application is instant: complete the questionnaire and the EIN issues on the final screen. You can apply any time the IRS systems are up (weekdays 7 AM to 10 PM Eastern). If you apply by mail with Form SS-4, processing takes 4 to 6 weeks. By fax, about 4 business days. Online is the only reason to do any other method.
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Can a non-US resident get an EIN for a US LLC?
Yes, but not through the online system. The IRS online EIN application requires a US taxpayer ID (SSN or ITIN). Non-US residents without SSNs file paper Form SS-4 by fax or mail with their passport country listed as the responsible party's country. Processing is 4 to 6 weeks. Some formation services targeting international founders (Doola, Firstbase, Stripe Atlas) handle the paper EIN filing as part of their service.
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What information do I need to apply for an EIN?
The LLC's legal name, state of formation, date formed, and business address. The responsible party's name, SSN or ITIN (or foreign residence if non-US), and title. The number of members/owners. The reason you're applying (new business, hired employees, opened bank account, etc.). You do NOT need a bank account to apply; you typically apply for the EIN first and then open the bank account. The IRS does not ask for revenue projections or business plans.
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Can I use my SSN instead of an EIN?
For a single-member LLC with no employees, technically yes for federal income tax (the IRS treats the SMLLC as a disregarded entity and the SSN works). In practice, using your SSN instead of an EIN creates problems: banks won't open business accounts on an SSN, 1099 recipients won't accept an SSN on the form (both sides prefer EINs), and S-corp election requires an EIN. The EIN is free and takes 15 minutes; there's no good reason to keep using an SSN once you've formed an LLC.
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Can I get a second EIN for the same LLC?
Rarely, and only for specific reasons. The IRS assigns one EIN per legal entity for its lifetime. You'd need a new EIN only when the entity itself changes materially: an LLC converting to a corporation, a business being sold and operating under new ownership, or structure changes that the IRS treats as a new entity for tax purposes. You do NOT need a new EIN for: moving states, changing business name, changing the responsible party, or switching between single-member and multi-member.
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What happens to the EIN when the LLC dissolves?
EINs aren't reassigned. When your LLC dissolves, the EIN stays on the IRS's records permanently, flagged as inactive. To formally close it, write a letter to the IRS (EIN cancellation address differs from the regular IRS address; see the IRS close-a-business page). Closing the EIN stops automated notices and prevents future tax-account problems. Do this as part of your regular LLC dissolution process.