Editor's note: This post was originally published on February 23, 2022, and has been updated for accuracy, comprehensiveness, and freshness on March 31, 2026.
If you’re starting or running an LLC, you’ve probably heard the term “EIN” come up. An Employer Identification Number is a nine-digit number assigned by the IRS that functions like a Social Security number for your business. But not every LLC is required to have one. Here’s what you need to know.
An EIN (Employer Identification Number), also called a Federal Tax Identification Number, is used by the IRS to identify a business entity. It’s required for many business tax filings and is used when hiring employees, opening a business bank account, applying for business licenses, and filing certain tax returns.
Whether your LLC needs an EIN depends on how it’s structured and what it does:
That said, even if you’re not legally required to get an EIN, it’s generally a good idea to have one. It protects your Social Security number from being shared with clients, vendors, and banks, and it makes business banking and tax filing more straightforward.
Applying for an EIN is free and straightforward. The fastest method is to apply online through the IRS website at irs.gov. The online application is available for businesses with a principal place of business in the United States or U.S. territories.
You can also apply by fax or mail using IRS Form SS-4, though processing times are significantly longer.
Setting up an LLC involves more than just filing paperwork. A LegalShield® Small Business Plan gives you access to a provider law firm that can help you understand your tax obligations, review your operating agreement, answer questions about business structure, and support you as your business grows.
Explore LegalShield Business Plans to find the right coverage for your LLC.
Not every LLC needs an EIN, but most do. Single-member LLCs with no employees can use the owner's Social Security number for tax purposes. However, if your LLC has multiple members, has employees, or is taxed as a corporation or partnership, you're required to have one.
You can use either, but an EIN is the safer option. Using your SSN for business taxes and banking means your SSN shows up on invoices, contracts, and government forms.This increases your risk of identity theft. An EIN gives you the exact same tax ID functionality without exposing your personal information.
No. Forming your LLC and getting an EIN are two different steps. You'll need to form your LLC with your state first. Then, you apply for an EIN through the IRS. The EIN application is free, and you can get your number in minutes through the IRS website.
Written and maintained by the LegalShield content team, covering legal and identity protection topics for individuals, families, and small businesses.
Dissolving an LLC can be tricky, and doing it without guidance can lead to unnecessary stress and delays. We’ve put together some helpful information so you can start the LLC dissolution process with more peace of mind.
An employment contract is an important piece of paperwork because it defines the working relationship, your expectations, and conditions. Here are some of the common components included.
Virtual business addresses can be a practical option for those forming an LLC from home, working remotely, or trying to keep their business and personal mail separate.
By the end of this blog, you’ll get a high-level summary of trademarking a name and logo, how logos differ from business names and artwork, and how much it all costs.
A DBA is a name registration that lets you run your business under a name other than your personal legal name or legal business entity. While a DBA offers branding flexibility and market expansion opportunities without creating a new legal structure, it does not provide legal liability protection, tax benefits, or function as a business license.
An indemnity agreement settles the “who is responsible” question ahead of time. One party promises, in writing, to cover certain losses tied to the work, so the other isn't left with the bill. These promises appear in construction contracts, leases, and business sales.
A certificate of good standing is official proof from your state that your business is registered and current on its requirements. Most lenders and agencies want a recent one, so it helps to know how to get it before someone asks.
Whether the goal is selling a company, bringing in a business partner, or passing it to a family member, the LLC ownership transfer often involves reviewing the LLC's operating agreement and the applicable state's rules.
