Do I Automatically Get an EIN with My LLC? Everything You Need to Know

This trips up a lot of new business owners. You fill out stacks of paperwork to get your LLC running, but then some form asks for an EIN—wait, didn’t the government automatically give you one?

Here’s the real deal: just forming an LLC doesn’t mean the IRS hands you an EIN on a silver platter. They’re two different things. Setting up your LLC is a state thing; getting an EIN is all about the IRS—federal stuff. So unless you ask for one, that nine-digit tax ID isn’t showing up in your inbox out of nowhere.

If you’re scratching your head on all this, you’re not alone. Lots of business owners don’t realize you actually have to apply for your EIN, even after the excitement of forming your LLC fades. It’s a separate step, but the good news is that it’s fast and free (if you do it right through the IRS).

• LLCs and EINs: What Actually Happens
• Why an EIN Matters for Your Business
• When You DO and DON’T Need an EIN
• How to Get an EIN—Step-by-Step

LLCs and EINs: What Actually Happens

Here’s the honest scoop: when you form an LLC, you’re playing in the state’s world. State agencies handle the paperwork and fees. After approval, you get documents that prove your business exists. But the IRS? They don’t swoop in automatically to assign your business an EIN. These are two separate hoops to jump through.

An LLC gives your business a legal shield, but as far as the IRS is concerned, it’s just another name on a long list. If you want a federal tax ID—your EIN—you have to ask for it directly from the IRS. This isn’t something the state does for you, and it doesn’t happen as a "bonus" when your LLC is approved.

Here’s a quick way to think about it: LLC formation gets you a certificate (sometimes called Articles of Organization). The EIN is like a Social Security Number for your business. No one gets one by default; you’ve got to go out and grab it.

• Your state files your LLC and gives you proof that you exist as a business.
• You need to file separately with the IRS to get an EIN.
• If you skip this step, you could hit a brick wall when trying to open a business bank account, hire employees, or file federal taxes.

According to the IRS, over 5 million EIN applications were filed in 2023 alone. That’s proof of how many businesses need to actually take this extra step.

A lot of business owners miss this detail in all the excitement. Maybe you use a formation service—they usually remind you, but they don’t always file the EIN for you for free. Double check, or you might pay extra for something you can do yourself in about 10 minutes.

Why an EIN Matters for Your Business

If you’re thinking you can skip the EIN and just use your Social Security Number for your LLC, think again. The IRS expects your business to have its own identity, just like you do. That’s what the EIN—Employer Identification Number—does. It’s basically a Social Security Number for your business, and it matters for way more than just taxes.

First up, if you want a business bank account, most banks won’t even look at your paperwork unless your LLC has an EIN listed. It’s how they prove your business is legit. Even if you’re running a single-member LLC with no employees, this rule is pretty much standard everywhere.

Taxes? The IRS uses your EIN to track your business filings. You’ll need it for income taxes, but also for paying your employees (if you hire any, ever), filing sales tax, and other state or local filings. If your business ever gets audited, having everything under your EIN instead of your personal Social Security Number just makes sense. Mix-ups are the last thing you want.

Check out what you’ll typically need an EIN for:

• Opening a business bank account
• Filing federal and state taxes
• Hiring employees
• Applying for business credit or loans
• Setting up payroll and benefits

According to the IRS, over 5 million new EINs were issued in 2023 alone. That’s a lot of new businesses. Most of them had no choice if they wanted to do business the right way—especially online, where banks and payment processors like Stripe or PayPal need that EIN to verify who you are.

One more thing—using your EIN instead of your Social Security Number is a small extra step in shielding your personal identity and info from fraud. If your LLC is ever sued, it helps keep that wall between you and your company’s finances.

When You DO and DON’T Need an EIN

This is where things get real: not every LLC absolutely needs an EIN from day one. In fact, plenty of one-person LLCs skip this step—at least at first. But then there are certain moments when having that EIN isn’t just smart, it’s required. Let’s clear up when you actually need to apply.

You need an EIN if:

• Your LLC has more than one member (even if they’re family or just friends helping out).
• You want to hire employees—even a single part-timer triggers this.
• You decide to be taxed as an S Corp or C Corp. (Pretty popular for saving on self-employment taxes and grabbing extra deductions.)
• Your business needs to set up a retirement plan, like a SIMPLE IRA or 401(k).
• You want to open a business bank account—just about every bank is going to ask for your EIN.

But, when can you get away without an EIN? If you’re a single-member LLC with no employees, and you’re fine using your Social Security Number for taxes, the IRS says you’re in the clear to skip it. Just know, things change fast if you decide to grow, hire, or switch up your tax structure.

There’s another big reason to grab your EIN: privacy. Using your SSN everywhere can leave you open to identity theft. A lot of business owners lock down their personal info by getting an EIN anyway.

Here’s a quick comparison to keep it all straight:

Bottom line: when in doubt, it’s usually safer to just get an EIN. It’s free, simple, and solves a lot of headaches before they start.

How to Get an EIN—Step-by-Step

Getting an EIN for your LLC isn’t rocket science, but it’s important to do it right. The IRS runs this process, and unless you stumble onto a shady third-party site, it’s totally free. Ignore anyone trying to charge you for what should cost nothing.

1. Check If You Need an EIN
   Before you dive in, make sure you actually need an EIN. Pretty much every multi-member LLC must have one. Even if you’re solo, you’ll need it if you want to hire employees, open a business bank account, or deal with certain vendors.
2. Head to the Official IRS Website
   The real deal is at https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. That’s where you should apply online, during IRS business hours—Monday through Friday, 7 a.m. to 10 p.m. Eastern Time. No paperwork shuffle needed.
3. Fill Out Form SS-4 Online
   The system walks you through simple questions about your LLC, yourself as the responsible person, your business activities, and why you need the EIN. Have your LLC info ready, like the legal name and mailing address.
4. Double-Check Before Submitting
   Double-check everything. Typos here can haunt you. The IRS will issue your EIN instantly if you apply online and answer the questions correctly. If you use mail or fax, expect to wait—usually up to four weeks by mail.
5. Save That Confirmation
   You’ll get a downloadable confirmation letter at the end. Print it, save a digital copy, and keep it handy. Banks and payroll providers will want to see it as proof.

If you’re outside the U.S. or your LLC isn’t totally straightforward, you can apply by fax or mail. Here’s how long those options take compared to online:

Stick with the online form if you can. It’s the fastest way to lock down your EIN and get rolling with tax stuff, payroll, and business banking. Remember, only the real IRS site gets you what you need—don’t pay extra fees to sketchy websites.