If you’re starting a Limited Liability Company (LLC), you’ve probably heard about the EIN—or Employer Identification Number. But do you really need one? The answer depends on how your LLC is structured, what activities it will perform, and whether you plan to hire employees or open a business bank account. In this complete guide, we’ll explain when an EIN is required, when it’s optional, how to get one for free, and why getting an EIN—even if not legally required—can be a smart move for any small business owner
What Is an EIN and What Does It Do?
An EIN (Employer Identification Number), also called a Federal Tax Identification Number, is a unique nine-digit number assigned by the IRS to businesses operating in the United States. It’s like a Social Security number, but for your business. The EIN is used for federal tax filing, hiring employees, opening business bank accounts, applying for licenses, and more. Even if you’re not employing anyone, an EIN serves as an official business identity in the eyes of the IRS and other institutions
When You MUST Get an EIN for Your LLC
There are several situations in which an EIN is required for your LLC. Here are the most common cases
- Your LLC has more than one member (multi-member LLC)
- Your LLC elects to be taxed as an S Corporation or C Corporation
- Your LLC hires employees (even one)
- You want to open a business bank account (most banks require an EIN)
- Your LLC files excise taxes, alcohol/tobacco/firearms taxes, or pension/retirement plans
- You withhold taxes for non-wage payments to non-residents (Form 1042)
In all these scenarios, an EIN is mandatory
Single-Member LLCs: Do They Need an EIN?
If you’re the only owner of your LLC (a single-member LLC) and you don’t have employees or specific tax filing requirements, you may not be legally required to get an EIN. The IRS allows a single-member LLC, taxed as a sole proprietorship, to use the owner’s Social Security number for tax purposes. However, this is not always recommended
Here’s why getting an EIN is still a good idea, even if it’s optional
Why You Should Get an EIN Anyway
- Banking and Payment Processors
Most U.S. banks will not let you open a business bank account without an EIN—even if you’re a single-member LLC. Payment processors like PayPal, Stripe, and Square also typically require it to verify your business identity - Professional Image and Privacy
Using an EIN instead of your personal Social Security number (SSN) protects your privacy. It also makes your business appear more professional and credible to vendors, clients, and partners - Future-Proofing Your Business
Even if your business doesn’t need an EIN today, you might hire employees or elect S Corp status later. Getting an EIN now saves you time and lets you grow more easily in the future - Separation of Personal and Business Finances
Having a separate EIN helps reinforce the legal separation between your personal and business finances—important for liability protection and accounting clarity
How to Get an EIN for Free (and Quickly)
Getting an EIN is free and easy, and you can apply directly on the official IRS website in just a few minutes. Here’s how
- Go to the official IRS EIN application page: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- Click “Apply Online Now”
- Complete the short application form with your business details
- Submit, and you’ll receive your EIN instantly
Note: You must apply during IRS business hours (typically Monday to Friday, 7am–10pm EST). If you’re not a U.S. resident, you cannot use the online form—you must apply by fax or mail using Form SS-4
How Non-US Residents Can Get an EIN
If you’re forming an LLC in the U.S. from outside the country, you can still get an EIN, even without a Social Security Number (SSN). Here’s what to do
- Download and fill out Form SS-4
- Leave the SSN/ITIN field blank if you don’t have one
- Write “Foreign” in the relevant section
- Fax it to the IRS at +1-855-641-6935 or mail it to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999, USA
- You’ll get your EIN by fax in about 4–10 business days
You can also call the IRS International EIN line: +1-267-941-1099 (Monday–Friday, 6am–11pm EST)
If you need help filling out the SS-4 form as a foreigner, many third-party services exist, but be cautious—the EIN is free, so you shouldn’t pay more than a small fee for assistance
Common Mistakes to Avoid
- Using your SSN when you could be protecting your identity with an EIN
- Thinking you don’t need an EIN if you don’t have employees (you probably still do for banking)
- Applying through unofficial websites that charge unnecessary fees
- Not applying for an EIN early, which can delay your ability to open bank accounts or apply for licenses
Conclusion: Most LLCs Should Get an EIN—Even If Not Required
Even if you’re a solo entrepreneur or freelancer with no employees, it’s almost always a good idea to get an EIN for your LLC. It improves privacy, helps separate your business and personal life, enables banking and payment processing, and sets your business up for future growth. Applying is fast, free, and gives your business a more professional foundation from day one
📌 Need help getting your EIN from outside the U.S. or want a step-by-step EIN application guide tailored to your business? Just let me know—I’ll be happy to create a checklist or walk you through the process