What Is an EIN and Why Does Your LLC Need One?

An EIN (Employer Identification Number) is a nine-digit number issued by the IRS to identify a business entity for federal tax purposes — similar in concept to a Social Security Number, but for a business rather than an individual.

Common Uses

What an EIN is used for

  • Federal tax identification for the LLC
  • Business banking
  • Federal and state tax filings
  • Certain financial and payment services
  • Hiring employees, where applicable
  • General business administration
An EIN does not guarantee a bank account

An EIN is commonly required or requested when opening a U.S. business bank account. However, having an EIN does not guarantee that a bank or financial institution will approve an account. Each institution sets its own eligibility, identity-verification, and compliance requirements.

Applying for an EIN as an international owner

IRS EIN application procedures can differ for applicants who do not have an SSN or ITIN. Sangemeel.LLC assists international LLC owners with preparing and submitting the appropriate EIN application to the IRS.

Common Confusion

EIN vs. ITIN

An EIN identifies a business; an ITIN identifies an individual. They are issued for different purposes and are not interchangeable. See the full LLC vs EIN vs ITIN comparison for details.

Need an EIN for your LLC?

Contact Sangemeel.LLC for assistance with your EIN application.

Contact Sangemeel.LLC