Do you need an EIN for your LLC?

What is an EIN and what is it used for?

An EIN is the number the IRS assigns to identify a business for federal tax purposes, much as a Social Security number identifies a person.

It is federal, so it works the same whichever state the LLC is formed in.

The IRS issues it, while the state's business filing office handles the formation document, which is the side a state guide such as forming an LLC in Texas covers.

Providers describe the everyday uses in their plan copy. ZenBusiness says it gets the EIN so you can open a bank account, hire employees, and pay taxes, and LegalZoom lists it as the federal tax ID used for banking and hiring. Those are provider descriptions of common uses; the IRS rule on who must have an EIN comes in the next section.^{3, 6}

A related term is the ITIN. The IRS describes it as a 9-digit IRS number for people who need a U.S. taxpayer ID for federal tax purposes but aren't eligible for an SSN. An ITIN identifies a person; an EIN identifies the business.⁷

When does an LLC need its own EIN?

It depends on members and employees. A single-member LLC needs its own EIN if it hires or must file certain excise tax forms; otherwise it generally uses the owner's number for income tax.

The starting point is how the IRS classifies the LLC: a single-member LLC is disregarded as separate from its owner by default. Without employees or those excise tax forms, the IRS says it generally uses the owner's SSN or EIN for income tax. Once the LLC has an employee, or must file one of the excise tax forms the IRS lists, it needs a number of its own.²

A multi-member LLC is classified differently, since a domestic LLC with at least two members is a partnership by default, and a partnership files Form 1065, U.S. Return of Partnership Income. Our IRS records quote the EIN rule for single-member LLCs only, so this guide doesn't state the rule for partnerships; the IRS's own EIN pages are the place to confirm it. The single vs multi-member guide explains the two tax treatments.^{8, 9}

An LLC can file Form 8832, Entity Classification Election to elect its classification, and an entity eligible to elect corporate treatment can elect S status by filing Form 2553, without a separate Form 8832. The S corporation election guide covers that choice and its deadline.^{9, 10}

Banks set their own account-opening rules, and those aren't in our records. Whether you need one for your own tax setup is a question for a tax professional who knows your numbers.

How much does an EIN cost?

Nothing at the IRS, whose EIN page warns about websites that charge for one and says the IRS never charges a fee for an EIN. A formation service charges for preparing and submitting the application on your behalf, not for the number itself.¹

Bought as a standalone service, the EIN application costs the following at the providers that publish a price, in the order of our rating.

• LegalZoom lists $79¹¹
• Bizee $70; its page adds "our Standard and Premium Packages include this service for free"¹²
• ZenBusiness $99 one-time, included in Pro and Premium¹³
• Inc Authority $49 as a standalone service⁴
• InCorp $69¹⁴
• Northwest $50 (with SSN) and $200 without SSN⁵
• BizFilings $79¹⁵
• Rocket Lawyer $70 with Plus or Pro membership¹⁶

Tailor Brands offers an EIN filing service (price not published), and so does Harbor Compliance (price not published). On scope, InCorp's page says InCorp can either prepare the requisite forms to the IRS - or can actually obtain your number for you. Harbor Compliance's page describes obtaining the number for you.^{14, 17, 18}

Applying yourself adds no government charge to the formation. A Wyoming LLC pays $100 to the state, a Delaware LLC $110 and a Texas LLC $300, and the EIN application itself adds nothing at the IRS. The state fees table lists every state's charge, and the cost calculator shows what each plan adds on top.^{19, 20, 21}

How do you apply for an EIN?

The IRS online tool is the fastest route: if approved, the EIN is issued immediately online. A business whose principal place of business is outside the U.S. can instead apply by phone or send Form SS-4 by fax or mail.^{1, 22}

1. Start with the formation. Our IRS records don't set an order, but the plans in our records sell the EIN as part of the formation order. The how to form an LLC guide walks through the filing.
2. Confirm who the responsible party is. The IRS says the applicant must be the responsible party or its authorized representative. Its EIN page adds that nominees are not authorized to apply for an EIN.¹
3. Have the identifying number ready. The online tool requires you to have the responsible party’s Social Security number (SSN) or individual taxpayer ID number (ITIN).¹
4. Apply online, and note the number the tool shows once it approves the request.
5. Keep a copy of the confirmation with the LLC's records.

The IRS also limits volume: only 1 EIN per responsible party per day, which slows an owner forming several LLCs at once.¹

What if the responsible party has no SSN or ITIN?

The online tool requires an SSN or ITIN, so it isn't open to them. For a business whose principal place of business is outside the U.S., the IRS route is to apply by phone (267-941-1099, Monday to Friday, 6 a.m. to 11 p.m. Eastern) or to send Form SS-4; its fax numbers are 855-215-1627 (within the U.S.) or 304-707-9471 (outside the U.S.). Our IRS records don't describe the route for a U.S.-based business whose responsible party has neither number.²²

Service terms differ here. LegalZoom lists, on a country page for founders abroad, "We file SS-4 with the IRS and deliver your EIN, without the need for a Social Security Number." doola's pages say "Whether you’re a US citizen or a non-resident without a US SSN, doola can help." Northwest charges $200 without SSN, a higher price than its $50 (with SSN) service. BizFilings states its EIN service requires an SSN or ITIN and doesn't help obtain the ITIN. The LLC for non-U.S. residents guide covers the agent, address and reporting side, and services for non-U.S. founders lists the providers whose pages say they serve them.^{5, 15, 23, 24}

Which formation plans include an EIN?

Several providers include the EIN application in their middle and top plans but not their entry plan, while doola includes it in all three. The table lists each published plan that includes it, followed by providers that sell it separately.

Sold separately: Tailor Brands EIN filing service offered; price not published; LegalZoom $79; Bizee (formerly Incfile) $70; ZenBusiness $99 one-time (included in Pro and Premium); doola Included in Starter; Inc Authority $49 (standalone service); InCorp Services EIN service, $69 (InCorp prepares the IRS forms or obtains the number for you); Northwest Registered Agent $50 (with SSN); $200 without SSN; BizFilings $79 (included in Complete package); Rocket Lawyer $70 with Plus or Pro membership; Harbor Compliance EIN service offered (price not published).

Bizee includes it in Standard and Premium, ZenBusiness in Pro and Premium, Swyft Filings in Standard and Premium and BizFilings in Core and All-Inclusive. LegalZoom lists it in its Managed Service and Expert Service plans. doola includes it in every plan, starting with Starter at $297/yr, and its two higher plans add Expedited EIN Processing (Only with Annual Billing).²⁵

Two details deserve a look before you choose a plan for the EIN alone. First, upgrading a plan only to get the EIN can cost more than the add-on: at ZenBusiness, Pro is $199 and renews at $199/yr, while the EIN by itself is $99 one-time. Second, a plan's inclusion doesn't change who can apply online; a responsible party without an SSN or ITIN still can't use the online tool, whoever submits the application.^{3, 13}

The services that include an EIN list orders these plans by price, and the full plan list shows everything else each tier contains. Each provider's page and pricing page gives the tier details.

What does an EIN add to the cost of forming in a given state?

When you apply yourself, the EIN adds nothing to the state's bill, and the total stays at the formation fee. A service changes the total only by its own price.

Take California, where the LLC filing fee is $70. If you file the LLC and apply for the EIN yourself, that fee is the whole government cost of the two steps. Choosing a plan that includes the EIN adds that plan's price; buying the EIN alone adds the add-on price, such as the $79 LegalZoom lists.^{11, 26}

Florida's fee is $125 ($100 filing fee + $25 registered agent designation), and the EIN adds no IRS fee to it either. The Florida LLC guide and the California LLC guide list each state's forms in order, and the best state for an LLC guide compares the state fees that do differ.²⁷