The LLC first
The EIN application needs the LLC’s approved legal name, and the IRS says to form it with your state before applying.
Before you read on
Not alternatives
Your state grants the LLC, the IRS issues the EIN, and most businesses end up holding both.
Did it backwards? Probably fine
A sole proprietor EIN usually carries over to a single-member LLC, and you do not need an LLC to hold one in the first place.
Ask which structure you need
The order is the easy part. Whether an LLC is the right structure at all is the question with money attached. Call (212) 641-0673 or use the contact form. Open evenings and weekends.
The short answer
Form the LLC first
Form the LLC first. The one caveat is that a sole proprietor EIN you already hold usually carries over, so doing it the other way around is rarely a problem.
01Why the order matters
Why you should form the LLC before applying for the EIN
The EIN application needs the LLC’s approved legal name, and the IRS issues the number under whatever name you enter. Enter a name the state has not approved and the EIN ends up attached to a name that is not your company’s. The IRS is direct about the order: form the entity with your state first, or expect delays.
A bank may ask you to confirm the EIN when you open the account, which is easier if the number is already in the approved name. And if the IRS finds an existing EIN under the same LLC name and state but a different address or responsible party, it asks for a dated filing receipt or certificate of organization first.
Before you file anything
Not sure an LLC is the right structure? Ask us before you file anything. Call (212) 641-0673.
02Step by step
The order, step by step, from filing to bank account
File Articles of Organization with your state
Wait for approval. In New York, approval also starts a 120-day deadline to publish a formation notice in two newspapers.Apply for the EIN once the name is final
It is free and takes minutes, but you have to finish it in one sitting.Open the bank account
Bring the formation document and the EIN notice together.
03EIN vs LLC
EIN vs LLC: what is the difference?
Different governments, different jobs. Neither substitutes for the other, so asking about an EIN or LLC first is a scheduling question rather than a choice.
| LLC | EIN | |
|---|---|---|
| Issued by | Your state | The IRS |
| What it is | A legal structure | A federal tax identification number |
| Do you need the other one first? | No — a sole proprietor can hold an EIN under their own name without ever forming an LLC. | No — the LLC is a state law question about liability rather than a condition of the federal number. |
04Already got the EIN first?
If you already got the EIN first
You almost certainly do not need to start over.
No new EIN needed
- A sole proprietor EIN usually carries over to a single-member LLC. The exceptions are corporate or S corporation treatment, employees, and excise tax.
- An address or responsible party change does not need one either — Form 8822-B covers those two, within 60 days for the responsible party.
- If the name came out wrong, fix the name rather than the number. An EIN issued under a name your state did not approve is a business name change with its own IRS procedure — you keep the same EIN.
- Changing the tax election of an LLC that already holds its own EIN does not force a new number.
New EIN required
- Terminating an LLC to form a corporation or a partnership.
- A single-member LLC that takes on employees.
- A single-member LLC that takes on an excise tax obligation.
05FAQ
EIN or LLC first FAQs
Do you need an LLC to get an EIN?
No. A sole proprietor can hold an EIN under their own name, and many do to keep an SSN off client paperwork. The LLC is a state law question about liability rather than a condition of the federal number.
EIN vs LLC: what is the difference?
Different governments, different jobs. Your state grants the LLC, which is a legal structure. The IRS issues the EIN, which is a tax identification number. Neither substitutes for the other, so asking about an EIN or LLC first is a scheduling question rather than a choice.
Do I have to wait for my LLC to be approved before getting an EIN?
Yes. The IRS issues the EIN in whatever name you type, so wait until the state approves the name. Nothing blocks an early application, which is how EINs end up under names that were never approved.
Should I get an EIN or a business bank account first?
The EIN first. A bank opening an account in the LLC’s name asks for the EIN and the formation document together, so there is nothing to gain from going the other way.
Do I need an EIN or a business license first?
The EIN first, in most cases. State and city license applications usually ask for a federal number, and you can get the EIN in minutes once the state approves the name.
Can I transfer my EIN to a new LLC?
No. An EIN belongs to the entity the IRS issued it to, and a new LLC needs its own. The one thing that does carry over is a sole proprietor EIN moving into your own single-member LLC.
Have us look at the structure too
Over a hundred clients came to us last season in the wrong structure. Before you file anything, ten minutes is worth spending. Call (212) 641-0673 or use the contact form. No charge.
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From the record
On getting the structure right the first time
“We had over a hundred clients this last tax season that were in the wrong business structure. And on average, they overpaid anywhere between a few thousand to even tens of thousands of dollars in tax just because they did not have the right business structure for themselves.”
George Dimov, CPA
“The entire team is extremely knowledgeable and have helped me change from an LLC to an S-Corp, setup payroll and file taxes efficiently. They have also been extremely responsive.”
Drew Blumenthal
Google review
Get the order right
Get the EIN or LLC question settled in one call
Whether you’re just starting out or already hold an EIN under the wrong structure, call (212) 641-0673 or send the contact form. No charge for the conversation.
Reviewed by George Dimov, CPA, New York, NY. Serving clients in all 50 states, 15+ years advising founders on entity selection, federal registration and New York City and State tax. President of George Dimov, CPA, a New York City firm serving clients across the five boroughs and nationwide.