How to Get a Tax ID Number for an LLC? (In-Depth Guide)
Getting a tax ID number — also called an EIN — for your LLC takes less than 15 minutes online and costs nothing if you apply directly through the IRS.
As a corporate attorney with over 10 years guiding clients through LLC formation and tax registration, I've helped dozens of business owners secure their EIN without delays or rejections.
In this guide, I'll walk you through exactly who needs one, how to apply, and what to do if your situation changes.
Quick Summary:
- To get a tax ID number for an LLC, complete and submit the IRS Form SS-4 either online, by fax, or by mail.
- The necessity for an EIN varies with the specific activities and structure of the LLC.
- Over 80% of small businesses with employees require an EIN for tax and legal transactions.
- I advise LLCs to obtain an EIN early to facilitate business operations and ensure compliance.
How To Get an LLC Tax ID Number
To get an LLC tax ID number, you must determine your eligibility, fill out the application form, and submit the document online, by mail, or by mail or telephone [1].
You can consult a law firm with any questions about the process.
1. Determine if Your LLC Needs a Tax ID Number
The easiest way to determine if you need a federal tax ID number is by visiting the IRS website.
Alternatively, the Small Business Administration (SBA) offers a great online tool that helps businesses determine if they need an EIN.
Drawing from my experience as a corporate attorney, I have seen that not all LLCs need to obtain a tax ID number.
If you operate as a single-member LLC, it won’t be necessary to apply for an EIN. Instead, you are required to use your Social Security Number for tax purposes.
However, if your LLC has employees, you must apply for an EIN.
If your LLC is taxed as a corporation, it's best to apply for an EIN. This way, you can be sure that you comply with the law and are doing everything possible to protect your business.
2. Fill Out the Federal Tax ID Number Application
Fill out the federal tax ID number application form, which is available on the IRS website.
I advise my clients that it is mandatory to provide all the requested information to speed up the application process.
3. Submit the Document
Online submission is free and the fastest option — the IRS issues your EIN immediately upon approval. Applying by mail is also free but takes approximately 4 weeks to process.
What Is the Purpose of Tax ID Numbers?
The purpose of Tax ID numbers in LLCs is to identify the business for tax and financial obligations.
They are used in tax filings, opening business bank accounts, hiring employees, and handling other financial activities.
Essentially, they serve as the federal identity of the LLC, similar to how a Social Security Number works for individuals.
"Citizens should pay taxes to enable the government to provide adequate services to its constituents."
- Jon Morgan, MBA, Business Growth & Strategy Expert, CEO & Editor-in-Chief of Venture Smarter
What Are the Requirements for Getting a Company’s Tax ID Number?
The requirements for getting a company's tax ID number are the following:
- Business legal name and address
- Principal officer's name and Social Security Number
- Business type (e.g., LLC, corporation)
- Reason for EIN application (e.g., new business, hiring employees)
The application can be submitted online, via fax, or by mail, but the online process provides immediate issuance. The applicant must have a valid SSN, EIN, or ITIN.
How to Change or Cancel an EIN?
To change or cancel an EIN, you need to follow the guidelines below:
- For Changes: Write to the IRS detailing the change (e.g., business structure, ownership), including your EIN, business name, and address.
- Cancellation: To deactivate your EIN, send a letter to the IRS that includes your entity's EIN, legal name, address, and reason for deactivating.
- Submission: Mail this information to the IRS's correct office.
Remember, while EINs cannot be "cancelled" in the traditional sense, they can be closed out if the business is no longer operating.
How Can I Find My Business Tax ID Number?
To find your business tax ID number, you can look through the document sent to you by the IRS upon the registration of your LLC or contact the Business & Specialty Tax Line.
If you have an EIN, it will be located on any paperwork you receive from the Internal Revenue Service (IRS).
Furthermore, you can also find your EIN by mail. To do this, you must complete the Internal Revenue Service Form SS-Fax or SS–479 and Mail it to the IRS for processing.
How to Protect Your Tax ID Number From Identity Theft
Your EIN functions like a Social Security Number for your business, which makes it a target for identity thieves who use stolen EINs to open fraudulent accounts or file false tax returns.
Treat it with the same care as your SSN: avoid sharing it on public platforms or in unsecured emails. If you suspect misuse, contact the IRS Business & Specialty Tax Line at 800-829-4933 and file a Business Identity Theft Affidavit.
Keep a secure copy of your CP 575 confirmation letter — the IRS does not allow you to re-download it after your session ends.
FAQs
Can You Have an LLC Without an EIN?
You cannot have an LLC without an EIN if your company hires employees. You will need to apply for a tax ID number if you are a business owner.
What Is the Difference Between LLC’s Employer Identification Number vs. Federal Employment Identification Number?
There are no differences between an LLC's employer identification number and federal employer identification numbers. They are interchangeable terms for the same thing: a tax ID number for LLCs.
Do I Need an EIN if I Am Self-Employed?
You do not need an EIN if you are self-employed. However, you will still need a social security number as taxes must be filed with the IRS under your name.
References:
- https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
