How to Apply for an EIN for an LLC
The IRS gives EINs away free and issues them in minutes. Here is the right order of steps, what to have ready, and how to spot the sites that charge.
An Employer Identification Number works as the federal tax ID for your business. The number runs to nine digits. You use it to hire employees and to file required tax returns and information returns. The IRS issues it free, and the online tool hands it over in minutes. Here is how to apply for an EIN for an LLC, in the right order.
What an EIN is and why an LLC needs one
The IRS says businesses, organizations and some retirement trusts need an EIN to manage their taxes. The IRS says an EIN is generally required before you bring on workers. You also need one to pay sales and excise taxes, and to change business structures or ownership.
Once you have it, you file required tax returns and information returns using your EIN.
Step 1: Get the LLC on file with the state first
The IRS says to form your corporation or LLC through the secretary of state before you apply for an EIN.
The IRS says skipping the state filing can slow down your EIN application. So file your Articles of Organization, wait for the state to confirm the LLC exists, then start the EIN application. The SBA's guide says you should apply for an EIN right after you register your business. That is the right window.
Step 2: Confirm you're eligible to use the IRS online tool
The online tool has rules about who can use it. The IRS says the tool is open to domestic organizations set up in the United States or its territories. The IRS says your principal place of business must be in the U.S. or U.S. territories.
You also have to be the right person. The IRS says the tool is for the responsible party who runs the entity, or that person's authorized representative. If you are a third-party designee, you must have signed authorization to apply. The IRS says the tool is closed to applicants using an EIN, except for government entities.
Step 3: Collect your details before you begin
The application runs on a clock, so collect everything first. You need:
- The LLC's legal name, exactly as the state approved it. The IRS says the business name you enter must conform to certain formatting rules.
- The responsible party's Social Security number or individual taxpayer ID number. The IRS says the number required belongs to whoever controls your business or organization.
Who is the responsible party? The IRS describes the responsible party as the one in control of your business or organization. The IRS says anyone filing as a third-party designee on your behalf needs your signed authorization first.
Step 4: Complete the online application in one session
The IRS says its online tool issues an EIN straight from the agency, at no charge, in minutes. But the tool has a hard limit. The IRS says the application has to be finished in a single sitting, since nothing can be saved and returned to. Go idle for 15 minutes and the application dies, forcing you to begin again from scratch.
In practice, that means no leaving the page for a coffee. If you are inactive for 15 minutes, the session ends and your answers go with it. This is why Step 3 matters. Have every number and name on paper next to you. Answer the questions, submit the application, and if it is approved, the IRS will issue your EIN immediately online.
One more limit. The IRS caps the tool at a single EIN each day for every responsible party. If you are the responsible party for two LLCs, plan on two days.
Step 5: Print and save your EIN confirmation letter
When the tool approves you, it shows your EIN on screen. The IRS says to print out the EIN confirmation letter and keep it. Do it right then. The IRS says to keep it for your records.
Save a digital copy too. The SBA's guide says your nine-digit federal tax ID becomes available immediately upon verification.
What to do when the online tool is closed to you
The online tool only works for U.S.-based businesses. The IRS says the tool is off limits when your main business location sits outside the country. If that is you, apply by phone, fax or mail. The IRS says phone, fax and mail applications are there for anyone the online route excludes.
The online tool gives you the number in minutes. Use the online tool if you can. Fall back to the others only when you must.
How to avoid EIN scams and identity theft
The IRS warns to beware of websites that charge for an EIN. The IRS says an EIN carries no fee at all. Not a small one. Not a convenience one. Zero.
Go to the IRS site yourself and use its tool. If a site asks for payment, it is not the IRS.
Watch the mail too. The SBA's guide says occasionally someone may request an EIN on your behalf for a legitimate business reason. An EIN notice you did not ask for? The IRS recommends confirming it was not a legitimate request made on your behalf. If your EIN was stolen, the SBA's guide says you should follow the IRS's steps to report business identity theft. The IRS recommends reporting an EIN you did not request with a Business Identity Theft Affidavit.
When an LLC needs a new EIN
An EIN does not expire. The SBA's guide says an EIN cannot be canceled because it is an assigned, permanent federal ID number. But some changes do call for a fresh number. The SBA's guide says in general you need a new EIN when your business's ownership or structure changes.
The SBA's guide says you should check with the IRS to determine whether you need to change or replace your EIN. If your LLC's ownership or structure changes, check with the IRS before you keep using the old number.
FinCEN's FAQs say U.S. companies are exempt from Beneficial Ownership Information reporting requirements under the new rule.