Securing an EIN for Your LLC: A Step-by-Step Guide

What should you do after setting up your LLC? Have you heard about getting an Employment Identification Number (EIN) for your LLC?

You might have a lot of questions about an EIN for an LLC. For instance, when does an LLC need one? What is an EIN, and what does it do?

An EIN is a 9-digit tax ID number required for businesses with employees. It allows your business to open a bank account, file taxes, and more. Without an EIN, some banks won’t let you open a business account. The EIN serves as the identification number for employees and employers.

You need an EIN once you’ve formed your LLC, but before opening a bank account or hiring employees. Even if you plan on working alone or with just one other person, you still need a tax ID number. If your LLC has more than one owner who isn’t married to each other, they are considered co-owners, not employees. However, if any members are employed by the LLC, it needs its own EIN.

To get an EIN, you need to fill out IRS Form SS-4. This form is available on the IRS website. You can submit your application by mail, over the phone (only for international applicants), or by fax. You can also apply online using a valid email address and phone number.

If applying by mail, fill out IRS Form SS-4 and include the required documents, usually found on the last page of the form. Most applicants need their articles of formation or certificate of formation for domestic LLCs. If your LLC doesn’t exist yet, include a signed statement from all members or managers stating their intent to form a company.

When applying by fax, follow the instructions carefully. Include your fax number in the EIN box on page 1 of the form. The only way to apply by phone is by calling 267-941-1099.

Once processed, you’ll receive a letter from the IRS with your EIN, which you will use when filing taxes, opening a bank account, and hiring employees.

If you’re a single-member LLC, the process is straightforward. For corporations or partnerships, it’s a bit more complex. Here’s what you need to do:

1. Enter the LLC’s business name as used in its Articles of Organization.
2. If the LLC uses a trade name, include it here.
3. State the responsible party, either the owner or a managing member.
4. Provide the LLC’s mailing address.
5. If different, provide the business address (do not use a P.O. box).
6. Enter the county where the business operates.
7. Include the responsible party’s name and Social Security Number.
8. Indicate that the EIN is for an LLC and mention the number of members.
9. Choose your business entity type (disregarded entity, corporation, or partnership).
10. Explain why you are applying (e.g., starting a business or hiring employees).
11. Enter the first business date.
12. Specify the final month of the accounting year.
13. Estimate the number of people you will employ.
14. Estimate your expected employment taxes.
15. State the first date wages or annuities were paid.
16. Check the box for your firm’s main activity.
17. Describe the core items or services offered.
18. Indicate if the LLC has already applied for and received an EIN.

Finally, type your name, title, phone number, and fax number, then sign and date the form.

Is getting an EIN free for an LLC?
Yes, the IRS doesn’t charge for obtaining an EIN for individual LLCs. However, your state might require you to pay a fee or file paperwork when applying for an EIN.

Do you get an EIN before or after forming an LLC?
Most states require you to obtain an EIN before filing your LLC’s Articles of Organization.

Why might you need an EIN?
You’ll need it if the responsible party isn’t a sole proprietor or single-member LLC. You might also need it when starting a business, hiring employees, or for other reasons.

Is there a difference between an EIN and a TIN?