Does an LLC Need an EIN?
Many LLCs need an EIN, but not every LLC needs a separate EIN for every federal tax purpose.
The answer depends on the number of owners, employees, tax obligations, tax elections, and other circumstances.
When does an LLC need an EIN?
IRS rules require an EIN in a number of situations.
For example, an LLC generally needs an EIN when it has employees or has certain excise-tax filing obligations. Multi-member LLCs also generally use an EIN for federal tax administration.
Entity elections and other circumstances can change the requirements.
Does a single-member LLC need an EIN?
A single-member LLC treated as disregarded from its owner for federal income tax purposes may not need its own EIN if it has no employees and no applicable excise-tax obligations.
However, the LLC may still obtain an EIN for business banking or because state law, a financial institution, payroll, or another business need requires one.
If the LLC has employees, IRS rules require use of the LLC's own name and EIN for employment-tax reporting.
EIN and S corporation elections
If an LLC elects a different federal tax classification, additional federal filing and identification rules apply.
Do not make an S corporation election simply to obtain an EIN. Entity tax elections should be evaluated separately with a qualified tax professional.
How to get an EIN
The IRS recommends electronic application when eligible.
A practical sequence is:
- Form the entity first if the EIN is for a newly created LLC.
- Gather the legal entity name and responsible-party information.
- Use the official IRS EIN application or another IRS-approved application method.
- Save the EIN assignment confirmation with your permanent business records.
The IRS warns applicants to use one application method for each entity to avoid receiving multiple EINs.
Is an EIN free?
The IRS itself does not charge a fee to issue an EIN through its official application process.
Third-party filing services may charge for assistance. You do not need to pay a private website simply to access the IRS application.
What comes after the EIN?
Common next steps include: