Getting an EIN for an LLC

Hamza Zahid,

An EIN is basically Employer Identification Number, issued by IRS to a business entity like an LLC. It’s an Employer Identification Number but you do not have to have employees to have this number. It is a type of Taxpayer Identification Number (TIN) that helps the IRS in identifying your LLC.

What does an EIN look like?

EIN is similar to the social security number as it also has 9 digits. However, you can differentiate both as an SSN has the numbers like (123-45-6789) while the EIN has (12-3456789). The EIN will be provided to you at the end of the online application or in the EIN verification letter known as 147C.

Other names of EIN

An EIN can also be referred to as the following names:

  • EIN Number
  • Employer ID Number
  • Employer Identification Number
  • Federal Employer ID Number
  • Federal Employer Identification Number
  • FEIN
  • Federal Tax Number
  • Federal Tax ID Number
  • Federal Tax Identification Number

Where is the EIN number of an LLC is used?

EIN Number is used for the following purposes

  • All correspondence with the IRS
  • Deposits and Payments for Federal Taxes
  • Opening an LLC bank account
  • Filing tax return and other documents
  • Handling employee payroll
  • Obtaining business lines of credit or business loans
  • Obtaining credit cards in the name of the LLC
  • Applying for business licenses

Wait for the approval of your LLC

Before applying for your EIN, you have to wait for your LLC to be approved by your state. Or else, you will be left with an EIN attached to a non-existent LLC.

EIN responsible party for LLC

When you apply to get EIN for LLC, the person that goes on file with the IRS is the EIN responsible party. He is the ‘contact person’. He will be the one with whom IRS sends and corresponds the mails.

  1. In the case of a single-member LLC: You will be your EIN responsible party.
  2. In the case of a multi-member LLC: One of your LLC members will be the EIN responsible party. IRS requires a single EIN responsible party. They do not need the information of all of your LLC members. This person will take the responsibility of handling the taxes for your LLC.
  3. In the case of another company owning your LLC: IRS no longer allowed an EIN Responsible party to be a company, in 2018. It must be an individual person. (if you try to get an EIN online, you will get an error by the end of the application). So it is better if you list one of the members of your LLC.

 How to apply for an EIN?

For the sake of the protection of your personal assets, you have to be sure that you get the EIN in the correct way. You can hire an attorney or another professional who can assist you in completing the forms and guide you. You can apple for an EIN:

  • Online
  • By Fax
  • By Mail
  • By Telephone (international applicants)

The IRS Form SS-4 (you can download by clicking on it) must include the name and taxpayer identification number of the responsible party. IRS has limited the issuing of EIN to one per responsible party per day.

EIN confirmation letter

When IRS issues an EIN for your LLC, you will receive the EIN Confirmation Letter (CP 575).

  • If you apply for an EIN online: You will be able to download a PDF copy of your EIN Confirmation Letter at the end of your online application. You do not have to wait for it, IRS will also send you a duplicate copy in the mail within 4 to 5 weeks.
  • If you send Form SS-4 by Fax: IRS will fax you the EIN confirmation letter in 4 to 7 business days.
  • If you send Form ss-4 by mail: IRS will mail you the EIN confirmation letter in 4 to 8 weeks.

How to cancel an EIN?

If there was a mistake in your first EIN application or you have to cancel the application for any other reason, you can just mail a cancellation letter to IRS. You do not even have to wait for the cancellation to get a new EIN for your LLC.

IRS Contact Information

You can call IRS at 1-800-829-4933 if you have any questions. Their office hours are 7 am – 7 pm (local time), Monday to Friday. You should call them early to avoid any long holding times.

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