How to Obtain a Federal Tax ID for Your LLC

Forming a limited liability company (LLC) is one of the most important steps toward launching a professional, legally compliant business. Once your LLC is established at the state level, the next task is to obtain a Federal Tax Identification Number. This nine-digit number, issued by the Internal Revenue Service (IRS), is necessary for handling tax obligations, hiring employees, opening a business bank account, and maintaining compliance.

Key Takeaways

• The IRS uses a Federal Tax ID (also known as an Employer Identification Number, or EIN) to track tax obligations.
• In 2025, nearly every LLC needs an EIN for banking, licensing, taxes, and hiring.
• You must form your LLC first before applying for an EIN to avoid inconsistencies.
• The fastest way to obtain an EIN is online through the IRS EIN Assistant, which provides instant results.
• International applicants must apply by phone and cannot use the online application.

What Is an EIN?

A Federal Tax Identification Number, commonly referred to as an Employer Identification Number (EIN), is used by the IRS to identify a business entity for federal tax purposes. Think of it as a Social Security Number for your business. Whether your LLC is a single-member or multi-member entity, it will likely need an EIN to conduct business operations.

Although often referred to as an Employer Identification Number, an EIN is not limited to businesses with employees; it can also be used by sole proprietors, independent contractors, and other entities. This can also be used by sole proprietors, independent contractors, and other entities to file taxes, open bank accounts, and apply for licenses.

Types of Federal Tax IDs for LLCs

Although “federal tax ID” is often used interchangeably with EIN, the IRS issues several different types of tax identification numbers depending on the nature of the entity and its purpose.

Employer Identification Number (EIN)

The EIN, also known as a Federal Employer Identification Number (FEIN), is the most commonly used business tax ID. It’s a nine-digit number, formatted as XX-XXXXXXX, issued by the IRS to identify businesses operating in the United States.

LLCs usually use an EIN for:

• Filing federal and state taxes
• Opening business bank accounts
• Applying for business licenses
• Hiring employees
• Establishing payroll
• Applying for financing or credit

An EIN is required if your LLC has more than one member, is taxed as a corporation, or hires employees. Even single-member LLCs often opt to obtain an EIN to simplify banking and keep their personal finances separate from their business finances.

Social Security Number (SSN)

An SSN is issued to U.S. citizens and eligible residents. While it’s not a business ID, sole proprietors or single-member LLCs without employees may be permitted to use their SSN in limited tax filings. However, this is not recommended due to concerns about privacy and liability.

Individual Taxpayer Identification Number (ITIN)

An ITIN is issued to non-U.S. residents who are required to file taxes but are not eligible for an SSN. ITINs are used by individuals, not businesses. A nonresident forming an LLC in the U.S. may need an ITIN for personal tax filings, but the LLC itself still requires an EIN.

Which Federal Tax ID Is Right for an LLC?

In nearly every case, your LLC will need an Employer Identification Number. The EIN serves as the primary tax ID for federal purposes and is used for a wide range of functions.

You should get an EIN for your LLC if:

• It has more than one member (multi-member LLC)
• It elects to be taxed as a corporation (S-corp or C-corp)
• It hires or intends to hire employees
• It needs a separate identity for banking, credit, or licensing purposes

Even single-member LLCs with no employees often apply for an EIN to avoid using their personal Social Security number (SSN) on forms and applications.

When Your LLC Must Get an EIN

There are specific triggers that require your LLC to obtain an EIN. You must get an EIN if:

• Your LLC has multiple members
• You hire employees or plan to hire within the next 12 months
• You elect to be taxed as an S corporation or a C corporation
• You withhold taxes on income, other than wages, paid to a nonresident alien
• You operate as a trust, estate, nonprofit, or farmers’ cooperative
• You file certain tax returns, like Employment, Excise, or Alcohol, Tobacco, and Firearms

Benefits of Having an EIN for Your LLC

1. Legal Separation From the Owner

Using an EIN allows you to clearly distinguish your finances from your business operations. This helps maintain the LLC’s liability protection and supports the concept of the corporate veil.

2. Business Banking and Credit

Most banks require an EIN before you can open a business checking account. Additionally, lenders and vendors often use your Employer Identification Number (EIN) to check business credit or verify tax status.

3. Hiring Employees

If your LLC plans to hire employees, an Employer Identification Number (EIN) is mandatory. It allows you to process payroll, withhold federal income tax, and submit employment tax reports.

4. Simplified Tax Filings

Having an EIN makes tax reporting and filing much easier, especially when filing business returns separately from your personal income.

5. Enhanced Privacy

Using an EIN helps protect your Social Security number (SSN) from overexposure on business forms and applications.

How to Apply for an EIN

Obtaining an EIN is free and relatively straightforward. The IRS offers several methods for applying, depending on your location and preference.

Step 1: Ensure Your LLC Is Legally Formed

Before applying for an EIN, your LLC must be officially registered with your state’s Secretary of State. This means filing Articles of Organization, receiving state approval, and securing a business name.

Step 2: Choose a Responsible Party

The IRS requires you to identify a “responsible party” who will be listed on the EIN application. This person must be a natural person, not a business, and generally is the individual who controls, manages, or directs the LLC’s operations.

Step 3: Select the Application Method

The IRS offers several methods for applying, depending on your location and preference.

Online Application (Fastest Method)

The quickest and most efficient way to apply is through the IRS EIN Assistant.

• Available to businesses located in the U.S. or U.S. territories
• The application must be completed in one session (no save option)
• Once submitted, you receive your EIN immediately

Fax Application

If you prefer not to use the online method, you can fax Form SS-4. If you include a return fax number, you will receive your EIN within four business days.

Fax Number: Varies by location (listed on IRS.gov)

Mail Application

You may mail a completed Form SS-4. This process takes approximately 4-6 weeks.

Mailing Address:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Telephone (International Applicants Only)

Foreign entities that do not have a U.S. legal residence or a principal place of business are not eligible to apply online. They must call the IRS at 267-941-1099 (not a toll-free number) to apply over the phone.

Step 4: Completing IRS Form SS-4

Regardless of your preferred method, you’ll need to fill out Form SS-4. It includes:

• Legal name of the LLC
• Trade name, if applicable
• Responsible party’s name and SSN or ITIN
• LLC’s mailing address
• Type of entity
• Reason for applying
• Number of members
• Primary business activity
• Expected number of employees

Be sure to sign and date the form if you’re submitting by mail or fax.

Step 5: Submit the Application and Receive Your EIN

If applying online, you’ll receive your EIN immediately after submitting the form. If you are using fax, mail, or telephone (for non-U.S. residents), expect a delay.

Once issued, keep your EIN confirmation letter (CP 575) in a safe place. It’s often required when applying for loans, licenses, or tax registrations.

Common Mistakes to Avoid

Applying Before Forming Your LLC

Make sure your Articles of Organization have been approved before submitting your application. Otherwise, you may need to repeat the process.

Entering Incorrect Information

Mistakes in names, addresses, or Social Security numbers (SSNs) can render your application invalid or cause processing delays.

Misclassifying the LLC

Be cautious when selecting your entity type. For example, a single-member LLC is by default taxed as a sole proprietorship, but it may elect corporate taxation by filing IRS Form 8832.

Not Keeping Your EIN Secure

Treat your EIN like a financial identifier. Avoid disclosing it publicly to prevent fraud or misuse.

How to Make Changes to Your EIN Account

If your LLC changes, such as a name change, address update, or change in ownership, you may need to update your EIN records or apply for a new EIN.

When You Need a New EIN

The IRS may require a new EIN when:

• A new LLC is formed after merging or acquiring another business
• The LLC is converted into a corporation or partnership
• Ownership or structure changes significantly

When You Do Not Need a New EIN

You can keep your existing EIN if:

• The business name or location changes
• The responsible party changes
• The LLC elects a different tax status but retains the same legal structure

To update IRS records, use IRS Form 8822-B.

Can an LLC Have More Than One EIN?

No. Each LLC should have only one EIN, unless there is a substantial change in the business structure that justifies obtaining a new number. For example, converting an LLC into a corporation may warrant applying for a new EIN.

You do not need a new EIN if you:

• Change the name of your LLC
• Add or remove members (for most tax purposes)
• Move your business location
• Open additional branches

What If You Lose Your EIN?

If you misplace your EIN, there are a few ways to retrieve it:

• Check your original EIN confirmation letter
• Look at your business tax returns
• Contact your bank or licensing agencies
• Call the IRS Business & Specialty Tax Line at 800-829-4933

Expert Tips From NCH

• Form Your LLC First: Never apply for an EIN until your LLC is approved.
• Use the online EIN Assistant—it’s the fastest method for domestic applicants.
• Keep your EIN confirmation letter safe—you’ll need it for banking and licensing purposes.
• International owners should apply by phone and prepare all required information in advance.
• Consider working with experts to avoid EIN application errors that delay compliance.

Stay Compliant With a Federal Tax ID for Your LLC

Obtaining a federal tax ID, specifically an Employer Identification Number (EIN), is a significant milestone. It helps establish your business identity, protect your privacy, and stay compliant with tax laws. Whether you’re forming a single-member LLC or starting a company with multiple partners, obtaining an Employer Identification Number (EIN) is one of the most crucial and essential administrative steps to ensure long-term success.

Need Assistance?

Let NCH help you with the complexities of business formation and compliance. We will make sure your EIN application is completed accurately and aligned with your LLC’s structure, saving you time, avoiding delays, and giving you peace of mind. If you’re launching a new business or expanding an existing one, our team is here to support you every step of the way.

Call us at 1-800-508-1729 for personalized guidance and professional support!

DISCLAIMER: The above material has been prepared for informational purposes only, containing opinions of the provider and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.