If you’ve formed a Limited Liability Company (LLC), you might be wondering: does an LLC need an EIN? The answer depends on how your LLC is structured and how it operates. In many cases, getting an Employer Identification Number (EIN) is required—but not always.
This article breaks down when an LLC must have an EIN, when it can operate without one, and how to get an EIN if needed.
What Is an EIN?
An Employer Identification Number (EIN) is a 9-digit number issued by the IRS to identify a business entity for tax purposes. It’s also referred to as a Federal Tax ID Number and is commonly used to:
- File federal and state taxes
- Open a business bank account
- Hire employees
- Apply for licenses and permits
Does an LLC Need an EIN?
Yes, Your LLC Needs an EIN If:
- You have employees.
Any LLC that hires workers must obtain an EIN to report payroll taxes. - You have more than one member.
Multi-member LLCs are treated as partnerships and are required to file a partnership tax return (Form 1065) using an EIN. - You elect to be taxed as a corporation.
If your LLC chooses to be taxed as an S Corporation or C Corporation, you’ll need an EIN for filing corporate tax returns. - You are subject to certain federal taxes.
This includes excise taxes or alcohol, tobacco, or firearms licensing. - You open a business bank account or apply for credit.
Most banks require an EIN, even if the IRS doesn’t.
No, Your LLC Might Not Need an EIN If:
- You’re a single-member LLC with no employees and no excise tax obligations.
- You don’t elect corporate taxation and choose to be taxed as a disregarded entity, meaning the IRS treats your LLC the same as a sole proprietorship. In this case, you can use your Social Security Number (SSN) to file taxes.
However: Even if not required, it’s still recommended to get an EIN to separate your personal and business finances.
Why Getting an EIN Is a Smart Move
Even when it’s not mandatory, having an EIN offers benefits:
- Adds professionalism when working with vendors or clients
- Helps establish business credit
- Required by many banks and payment processors
- Offers privacy by reducing the need to use your SSN
How to Get an EIN for Your LLC
You can apply for an EIN:
- Online at IRS.gov (fastest and free)
- By fax or mail using Form SS-4
- By phone (for international applicants only)
Final Thoughts
So, does an LLC need an EIN? Yes—if it has employees, multiple members, elects corporate taxation, or needs to comply with banking or tax regulations. Even when not legally required, obtaining an EIN is a smart and simple way to professionalize and protect your business.
