Updated on: June 24th, 2024

How to Get a Tax ID Number (EIN) for an LLC?

Hire Professionals to Help You in Forming an LLC w/ EIN (from $0 + state fees)

Once your LLC has been formally registered with the secretary of state’s office, you must decide if it is necessary for you to obtain an Employer Identification Number (EIN) from the IRS.

An LLC without any employees does not need to acquire an EIN for doing business since their taxes can be filed using the owner’s Social Security Number. On the other hand, once a single employee or more employees are hired by that same LLC, then obtaining and utilizing an EIN for filing taxes becomes essential.

If you want to skip the hassle of starting an LLC yourself, consider using professional help:

What is a Federal Tax ID?

Akin to a personal Social Security number used for individuals, the Internal Revenue Service (IRS) assigns businesses and organizations their own unique Employer Identification Number (EIN). This Federal Tax ID is an essential part of any organization’s operations.

Who Needs a Federal Tax ID?

The need for a Federal Tax Identification Number (EIN) is mandated by the IRS for most business entities, such as corporations, partnerships and LLCs. Even when not required to do so by the IRS, an EIN offers many other advantages. For example it is essential in safeguarding against identity theft and crucial if you are seeking to open up a bank account specifically tailored towards businesses.

Pros and Cons of Getting an EIN for Your LLC

Here are some Pros and Cons that you might be interested in before getting your EIN number.

Pros

Forming a limited liability company (LLC) creates numerous advantages for business owners and entrepreneurs. A significant action in this process is obtaining an employer identification number (EIN), which allows your LLC to open financial accounts, file taxes and more.

There are several distinct pros to having an EIN in connection with your LLC.

  • Including the ability to protect personal assets from business liabilities.
  • Being eligible for different types of tax exemptions.
  • Improving credibility when dealing with other businesses and agencies.
  • Establishing lines of credit and raising capital more easily across international waters, and
  • Streamlining bookkeeping efforts as both personal and business expenses can be tracked separately yet together.

Obtaining an EIN is a great way to ensure your LLC has all it needs to succeed.

Cons

Starting an LLC can be a great way for entrepreneurs to protect their business assets and separate personal debt from their business-related obligations. However, filing for an EIN, or employer identification number, which is typically required for LLCs, can have some drawbacks.

  • First, the process of applying and granting of the EIN can be timely — especially if you’re starting a business in a new state as you need to file additional paperwork upfront.
  • Secondly, it could involve hefty fees or cost depending on the type of establishment you have.
  • Lastly, it could involve extra paperwork if there are changes with your business later on and the associated costs that come with those updates.

For any entrepreneur looking to open up their own LLC shop, it’s important to weigh the pros and cons of filing for an EIN before taking the plunge!


Determine Your Eligibility for Getting an EIN

If you are interested in obtaining an EIN, the first thing to do is assess if your entity qualifies under IRS requirements.

To be eligible for an EIN, your main business must be located in either a U.S. state or territory and you must possess a valid taxpayer identification number (e.g., SSN or EIN). Additionally, only one “responsible party” may submit their application per day!

According to the IRS, a responsible party is an individual who exerts ultimate control over their business entity and tax obligations. Furthermore, while non-U.S. citizens are eligible for an EIN number, they cannot apply online; U.S. citizens may utilize the convenient and secure online application process instead!

Applying for an EIN

Ready to apply for an EIN? You can find the form on the IRS website; however, you will need to dedicate a few minutes of undivided attention since it cannot be saved and must be completed in one session – typically within 15 minutes. If phone is more your style, contact the IRS at (800) 829-4933 and select “EIN” when prompted with options. So get ready – time to knock this application out!

Applying for an EIN online is the most convenient and prompt option. You just need to provide several details about your LLC, such as:

  • Names and Social Security numbers of owners;
  • Responsible party’s name;
  • Business address and trade names;
  • Start date of the company;
  • Primary line of activity,
  • Along with estimated number of workers.

And you’ll be assigned an EIN in no time!

With an EIN number, you can easily identify your business to the IRS. Not only that, but it is also a crucial part in setting up and operating any type of organization. The EIN provides access to banking services for businesses, helps obtain essential licenses and permits necessary for operations, as well as filing corporate tax returns efficiently each year.

How do I Obtain a Federal Tax ID When Forming an LLC?

To open a business bank account and hire employees, you will need an EIN (Employer Identification Number), also known as a Federal Tax ID Number. Luckily, obtaining this federal employer identification number, is effortless with the simple form that’s provided – take the necessary steps to get your LLC registered today!

Creating a limited liability company (LLC) requires you to apply for an employer identification number, or EIN. An EIN is like a Social Security number issued by the Internal Revenue Service and can be easily obtained with nothing more than completing one page of information. The nine-digit identifier allows your LLC to pay taxes as prescribed by law.

LLC Types and Taxes

When creating a Limited Liability Company (LLC) the Internal Revenue Service (IRS) will classify it as one of three business entities:

  • Corporation,
  • Partnership or
  • Disregarded entity.

A multi-member LLC can choose to be classified as either a partnership or corporation; whereas, single-member companies must elect between being categorized as taxable disregarded entity or Corporation.

Furthermore, if s corporation or an individual owns a disregarded entity then it is considered a sole proprietorship and when under control by a Corporation ownership classifies that specific “entity” as its branch/division.

Does a Single-Member LLC Need a Federal Tax ID?

Generally speaking, a single-member LLC does not require its own federal tax ID. This is because the individual’s Social Security number can be used for taxation purposes and any business activities of the LLC will be reported on their personal and business tax returns. The only exception to this rule would apply if the disregarded entity has employees and pays either federal employment taxes or excise taxes; in those cases, it must acquire its own tax ID number as it is treated separately from its owner.

Obtaining a federal tax ID number is an essential step for single-member LLCs who wish to open business bank accounts or partake in other business activities. As such, many LLCs will obtain one of these state tax id numbers without fail.


How to Apply for an EIN?

Securing a federal and state tax- ID is one of the essential steps you must take to protect your personal assets from any business liabilities while enjoying key benefits that come with running an LLC. The carefully crafted structure of an LLC ensures optimal flexibility in managing your business and keeping it thriving.

If you want additional help, consider hiring a lawyer or other professional who can assist in filling out the required forms and make sure that no steps are overlooked.

To apply for an EIN specifically, take your pick:

  • Online,
  • Faxing it over to the IRS office,
  • Mailing them with the completed application form or if you’re living outside of US borders dial up their hotline!

To obtain an IRS Form SS-4, one must submit the name and taxpayer identification number of the person or entity responsible for file taxes and running business operations. Furthermore, it is important to remember that the Internal Revenue Service restricts issuing EINs to only one per day per accountable party.

Apply Online

For the quickest turnaround time, make sure to submit an EIN application form through irs.gov. Once approved and validated, your business will be issued with a new EIN in no time at all! Don’t forget to save and print out a confirmation notice as proof of your successful filing for future reference.

To make use of our online service, your enterprise must be situated in the United States or its Territories and it is accessible from Monday to Friday.


Apply by Fax or Mail

You can also submit a paper form and mail or fax it to the IRS. Be mindful of the current Fax-TIN number as this may change without warning. The convenient 24/7 fax service allows you to provide your own contact information with confidence; in turn, you should expect an EIN within four business days from when you have sent those documents out!

For those who prefer to send the application by post, anticipate your EIN arriving in up to four weeks to six weeks via mail.


If You Misplace an EIN Number

Have you lost your EIN? Don’t fret! Simply call the IRS’s Telephone Assistance for Businesses, which the toll-free number is available on weekdays. The IRS will verify that they are speaking to the correct person and then provide them with their EIN.

For a range of business and tax purposes only, an LLC requires a federal tax ID number or EIN. The need for this increases if you open a business bank account or plan to employ staff members. Rather than spending time on tedious paperwork and filing the requisite documents yourself, enlist the help of reliable legal document firm that can take care of it all without any hassle – making launching your new venture easier!


Get Professional Help in Forming an LLC and EIN for You

It can be difficult and time-consuming to form an LLC all by yourself.
That’s why we decided to give you a few of the best options for professional services that can help you start an LLC in no time & with 0 effort!

You may also want to look at our best LLC services list here.

#1 – Create an LLC and Get EIN Using Northwest Registered Agent

Northwest has vast experience in creating LLCs and Corporations. They by far have the best support and client satisfaction rate. We’ve used and tested them ourselves and can guarantee that they’ll do an exceptional job for you.
We advise reading Northwest Registered Agent’s review here.

$39+State Fees

star rating image

Rating: 4.9/5
Review count: 4850+

northwest-logo

Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!


#2 – ZenBusiness Can Help You Form an LLC Along With EIN

ZenBusiness is one of our top-rated LLC services as well. They have a super value-to-price ratio. And it’s perfect for those who are looking for the cheapest option to form their LLCs. When we tested their service — they’ve done a great job, so we can honestly recommend them.
To know more about them — read our ZenBusiness review here.

$0 + State Fees

star rating image

Rating: 4.8/5
Review count: 4830+

ZenBusiness-new logo

Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.


FAQs

Get Some More Knowledge About Business & LLCs

Scroll to Top