Employer Identification Number (EIN) for Your LLC
Employer Identification Number
An Employer Identification Number (EIN) is issued by the Internal Revenue Service (IRS). It's unique to the company, cannot be used for another company, and may be obtained online if the responsible party has a Social Security Number (SSN) or ITIN and the business meets IRS eligibility requirements, or by fax or other IRS-approved methods if it does not.
Please follow the instructions below to obtain an EIN online. This assumes an owner or manager has an SSN and is eligible to use the IRS online system. If there is no one with an SSN willing to be the responsible party, then you must apply using alternative IRS-approved methods. In short, you must submit a completed Form SS-4 if no owners or managers have, or are willing, to use their SSN or ITIN.
Many companies must have an EIN. The Employer Identification Number is required to file certain taxes, have employees, open a bank account, complete the CTA Beneficial Ownership Information (BOI) filing in many cases, and more. As a result, most companies cannot avoid applying for an EIN. Every company we form, or act as registered agent for, receives a free EIN and CTA/BOI filing when required, so our clients need not stress about this matter. We handle the process for you.
Note, the following information applies to Limited Liability Companies (LLCs), but very similar information is required to apply for Corporations, Limited Partnerships, Trusts, and other entity types.
How to Get an EIN Online?
You may follow the instructions below, or use our service. Every company that signs up with us receives a free Employer ID. There is no extra charge.
How Long Does it Take?
If someone associated with the company has an SSN or ITIN and the application is eligible for online filing, the EIN is typically generated immediately. There are sometimes error codes, which are determined by the IRS and outside of the applicant's control. If there is an error, or the company is not eligible for online filing, the application must be submitted using alternative IRS-approved methods. Processing times for non-online submissions vary and can take several weeks or longer in some cases.
Does Your Business Need an EIN?
Many businesses do. The Corporate Transparency Act administered by FinCEN requires most reporting companies to file Beneficial Ownership Information, and an EIN is commonly used for this purpose. Additionally, an EIN is generally required to open a bank account, file certain tax returns, and hire employees. Given these requirements, most companies will need to obtain an EIN.
To complete the application online, this information is required:
- Company Name, County & State
- Entity Type
- Number of Owners
- Reason for Applying (New Company, Hired Employees, Banking, Compliance, etc.)
- Responsible Party
- State of Formation
- LLC Location
- Industry-specific questions (Real Estate, Transportation, Gambling, etc.)
You may complete the form yourself, or use our service. Every company we represent, whether a new formation or registered agent switch, receives an EIN at no additional charge.
The IRS online application begins here:
https://sa.www4.irs.gov/modiein/individual/index.jsp
"You will be required to sign a disclaimer stating the system is for authorized use only, you consent to monitoring, interception, recording, reading, copying and capturing by authorized personnel….There is no right to privacy in this system."
In short, information submitted to the IRS through this system is monitored. This statement should not be alarming, as similar notices appear on many government websites.
Once you accept the warning, the next page provides additional disclaimers and responsibilities. Click "Begin Application" to proceed.
After accepting the above, the IRS begins asking for company-specific information. The first question, which determines the rest of the flow, is the type of entity you are applying for. Here we assume it's an LLC, but regardless, the requested information is largely similar across entity types. Other options include Corporations, Limited Partnerships, Sole Proprietorships, Estates, Trusts, and others.
Each has its own user flow, but the intent remains the same. The IRS seeks to identify who controls the company, whether tax obligations exist, and whether special considerations apply, such as nonprofit status.
The next page provides explanatory details for the selected entity type. In the case of an LLC, it explains that the entity is authorized by state statute, formed using Articles of Organization, must have a distinguishable name, and outlines default tax treatment and related considerations.
Selecting a Corporation or Trust provides similar explanations, such as formation requirements, naming rules, and tax obligations.
You must then choose the number of members or owners and where the LLC is physically located. This refers to where the LLC primarily conducts business or operations, not necessarily where the Articles of Organization were filed. This can be confusing for location-independent companies or those operating in multiple states.
The IRS provides limited guidance on this selection. The Form SS-4 instructions advise listing the primary physical location. We recommend using your best reasonable interpretation based on where the company primarily operates.
The following page explains the tax implications of your selections. The state chosen does not change the federal default tax classification. A single-member LLC is taxed as a sole proprietorship by default, while a multi-member LLC is taxed as a partnership. These are default classifications.
If you prefer a different tax treatment, you may file the appropriate election with the IRS. An LLC may be taxed as a sole proprietorship, partnership, S-Corporation, or C-Corporation, making it one of the most flexible entity types.
The application will ask why the company is requesting an EIN. Reasons may include banking, tax filing, compliance requirements, hiring employees, or best practices for a new company. Select the option that best fits your situation.
Next, you will be asked to provide information about the responsible party, which must be a natural person. The IRS no longer allows another entity to serve as the responsible party. This individual must be authorized to control, manage, or direct the company and its finances.
The question regarding whether you are an owner or third-party designee is intended to identify whether someone outside the company is submitting the application.
You will then be asked for the company's physical address. This is where IRS correspondence will generally be sent. If the mailing address differs, you may specify that as well.
The address must match the USPS database, or the system will suggest a standardized version. You may select the option that best reflects your actual address.
You will next enter the company name exactly as it appears on the formation documents. The IRS may abbreviate or modify certain words on the EIN confirmation (CP-575), which is normal and rarely causes issues with banks or other institutions.
If the company has a DBA or trade name at the time of filing, it should be included. If a DBA is registered later, it does not require updating the EIN record.
You will also provide the state and county of formation and the company start date.
Additional questions may follow to determine whether the company has excise tax obligations, regulated activities, or plans to hire employees.
Industry-specific questions may also be asked. Depending on the selections, follow-up questions may appear. This information is used for classification and reporting purposes.
Before submission, you will be shown a summary of all entered information. Review it carefully, as this is the final opportunity to make changes.
Finally, you will choose how to receive the EIN confirmation. The instant PDF option is generally recommended, as it provides immediate access to the EIN notice. Mailing the notice may take additional time.
Conclusion
Obtaining an Employer Identification Number (EIN) is a critical step for most companies. It is commonly required for tax compliance, banking, hiring employees, and regulatory filings. While the process can be detailed, our service simplifies it by handling the application at no additional cost for our clients.
If you have questions about forming your LLC or obtaining an EIN, please complete our contact form.