LLC EIN Number: What Is It & How to Get One?
An Employer Identification Number (EIN) is a federal tax ID assigned by the IRS. An LLC may need one for employees, certain excise taxes, partnership or corporate tax treatment, or other specific requirements.
Not every single-member LLC needs a separate EIN for federal income-tax purposes.
Quick Summary
An LLC generally needs its own EIN if it has employees, files certain excise taxes, has multiple members, or elects corporate treatment. A single-member disregarded LLC with no employees or relevant excise-tax filing may not need one for federal tax, though a bank or state may request it. Apply free through IRS.gov.
What Is an LLC EIN?
An EIN is a nine-digit federal identification number used by the IRS to identify a business for tax administration. It is not a business license, credit score, or proof of liability protection.
The number remains associated with the entity; whether it must be used on a particular form depends on the LLC’s federal tax classification and the reporting rule.
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How to Apply for an EIN
First confirm that the LLC needs an EIN and identify its responsible party. The IRS online application is free and, when available, issues the number after a completed application [1].
Apply only through IRS.gov. The IRS does not charge an application fee; commercial services may charge to prepare or submit forms.
If applying by mail or fax, use the current Form SS-4 and instructions. Do not submit multiple applications for the same entity while waiting for a response.
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Who Needs an EIN?
An LLC generally needs an EIN when it has employees or must file certain excise-tax returns. A multi-member LLC generally needs its own EIN. An LLC electing corporate or S-corporation treatment also needs one [2].
A single-member disregarded LLC with no employees and no relevant excise-tax obligation does not need a separate EIN for federal income-tax purposes. A bank or state may still require one, and the owner may choose to request one.
What an EIN Is Used For
Use the EIN where IRS instructions require it, including applicable employment or excise-tax filings. A bank or state agency may also request it as an identifier.
Getting an EIN does not automatically register the LLC for payroll tax, sales tax, a business license, or credit reporting. Complete each separate registration that applies.
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Keep EIN Records Accurate
Save the IRS confirmation letter with the LLC’s formation and tax records. Use the correct legal name and responsible-party details on filings.
If the responsible party changes, notify the IRS using Form 8822-B within the period in the current instructions. Keep the submission confirmation.
How to Look Up an EIN
The IRS generally does not provide a public directory for looking up another private business’s EIN. Check the LLC’s IRS notices, prior tax returns, or bank records if you are authorized to access them.
For a public company, an EIN may appear in SEC filings. For another private business, request the number directly from an authorized representative rather than relying on an unofficial lookup site.
Related reading:
- EIN lookup
- Does an LLC Get 1099 During Tax Time
- Can You Form an LLC Without an SSN
- Do You Need an EIN for an LLC
Can You Cancel an EIN?
An EIN is a permanent federal identifier and is not reassigned to another business. If the LLC closes or no longer needs the number, it cannot erase the EIN.
After filing required returns and paying amounts due, the business may ask the IRS to close its business account [3]. Dissolve the LLC separately with the state.
FAQs
Does every LLC need an EIN?
No. Some single-member disregarded LLCs do not need one for federal income tax, but employees, certain excise taxes, multiple members, corporate elections, banks, or state rules may require it.
Does an EIN cost money?
The IRS EIN application is free. A third-party service may charge for assistance.
Can I cancel my EIN after closing my LLC?
The number is permanent, but after required filings and payments are complete, you can request that the IRS close the business account. State dissolution is separate.
References:
- https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number
- https://www.irs.gov/faqs/small-business-self-employed-other-business/entities/entities-2
- https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein
Getting an EIN number for your LLC is a crucial step in the business setup process, and this article provides all the details you need. From applying online to understanding its importance for tax purposes, it’s a must-read for new business owners.