If you’re starting a Limited Liability Company (LLC), one of the essential steps is obtaining an Employer Identification Number (EIN) from the IRS. Even if you don’t have employees, your LLC still needs an EIN for various business and tax purposes.
An EIN is like a Social Security Number for your LLC. It’s a unique 9-digit identifier used by the IRS to track business activities. Unlike a Social Security Number (SSN), which follows the format 123-45-6789, an EIN is formatted as 12-3456789.
Different Names for an EIN
The EIN is known by different names, but they all refer to the same thing:
- EIN Number
- Employer ID Number
- Employer Identification Number
- Federal Employer ID Number (FEIN)
- Federal Tax ID Number
- Federal Tax Identification Number
Why Do You Need an EIN for Your LLC?
Your EIN is required for several key business activities, including:
✅ Opening a Business Bank Account (Checking, Savings, or Investment Accounts)
✅ Filing Business Taxes (Federal, State, and Local)
✅ Processing Payroll (If You Hire Employees)
✅ Applying for Business Loans or Credit Cards
✅ Obtaining Business Licenses and Permits
Who is the EIN Responsible Party?
- For a Single-Member LLC → The owner is the EIN Responsible Party.
- For a Multi-Member LLC → One designated member is listed as the EIN Responsible Party. The IRS only requires one person’s details when issuing the EIN, while the other members’ information is provided during annual tax filings.
How to Apply for an EIN for Your LLC?
There are three main ways to apply for an EIN, depending on your situation:
1. If You Have an SSN or ITIN
- The fastest and easiest method is applying online through the IRS website.
- You will receive your EIN immediately upon approval.
2. If You Get an Error While Applying Online
- Sometimes, applicants receive an error message (also called a reference number).
- If this happens, you must submit Form SS-4 to the IRS via mail or fax.
3. If You Don’t Have an SSN or ITIN
- You can still obtain an EIN for your LLC, but you cannot apply online.
- Instead, you must mail or fax Form SS-4 to the IRS and fill out Line 7b correctly to ensure approval.
IRS Contact Information If you need help, you can call the IRS Business & Specialty Tax Line at 1-800-829-4933. Their office hours are 7 AM – 7 PM (local time), Monday to Friday. To avoid long wait times, it’s best to call early in the morning.
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