When an LLC Must Have an EIN
You are required to obtain an EIN from the IRS if your LLC:
- Has more than one member (multi-member LLC)
- Hires employees
- Elects to be taxed as a corporation (C Corp or S Corp)
- Has a Keogh retirement plan
- Withholds taxes for non-resident aliens
In these cases, you cannot use a Social Security Number (SSN) or other tax ID—you must have a valid EIN.
When an LLC May Not Need an EIN
If you operate a single-member LLC with no employees and file taxes as a sole proprietorship, you may not need an EIN. The IRS allows such businesses to use the owner’s SSN for federal tax purposes.
However, even in these cases, getting an EIN is still a smart move.
Why You Should Still Get an EIN for Your LLC
Even if you’re not legally required to have one, there are several advantages to obtaining an EIN:
- Open a business bank account
- Protect your personal SSN
- Build business credit
- Simplify tax filings
- Apply for licenses or permits
- Present your LLC as more professional and credible
Applying for an EIN Is Free and Easy
The IRS provides EINs at no cost. You can apply:
- Online through the IRS website (immediate response)
- By mail or fax using Form SS-4
- By phone (international applicants only)
Final Answer: Do You Have to Have an EIN for an LLC?
- Yes, if your LLC has employees, multiple members, or elects corporate tax treatment.
- No, if it’s a single-member LLC with no employees and no special tax elections.
- But yes, you probably still should—for banking, identity protection, and business credibility.
