When Does the IRS Require a Single-Member LLC to Have an EIN?
The IRS requires an EIN for a single-member LLC in 6 situations: employees, employment tax returns, excise tax, a Keogh or solo 401(k) plan, foreign ownership, and any election to be taxed as a corporation.
| Situation | EIN required | The filing that forces it |
|---|---|---|
| Hires 1 or more employees | Yes | Form 941 each quarter, Form 940 each year |
| Withholds employment tax | Yes | Forms W-2 and W-3 by January 31 |
| Owes federal excise tax | Yes | Form 720 each quarter |
| Has a Keogh or solo 401(k) plan | Yes | Form 5500 series |
| Owned by a non-US person | Yes | Form 5472 with pro-forma Form 1120 |
| Elects corporate or S-corp status | Yes | Form 8832 or Form 2553, then 1120 or 1120-S |
| US owner, 0 employees, no excise tax | No, by IRS rule | Schedule C on the owner’s Form 1040 |
Source: IRS Instructions for Form SS-4, “Who Must File,” and IRS Publication 3402 on single-member LLC classification, verified July 2026.
Read the last row carefully, because it is the only row where the IRS itself says no. A US owner with 0 employees reports the LLC’s profit on Schedule C of a personal Form 1040 and uses a Social Security Number as the taxpayer identification number. That is the entire scope of the exemption. It disappears the day the LLC hires its first employee, and it never applied to a non-US owner at all.
One mechanism explains the whole table: the EIN is not a permission to trade, it is the account number the IRS posts a filing against. Every row above names a return the LLC files in its own right rather than through the owner’s 1040. A return in the LLC’s own right needs an account of its own, and that account is the EIN. The disregarded-entity row files nothing separately, which is why it is the single exception.
Single-Member LLC: EIN or SSN?
A single-member LLC uses an EIN or the owner’s SSN as its tax ID. The SSN route is limited to US owners with 0 employees, and it exposes a 9-digit personal number on every W-9 the LLC signs.
| What you are doing | With an EIN | With the owner’s SSN |
|---|---|---|
| Open a US business bank account | Accepted | Refused by Mercury, Relay, Wise, Chase, and Bank of America |
| Sign a client’s Form W-9 | EIN on the form | Personal SSN on every copy |
| Issue Form 1099-NEC over $600 | Filed under the EIN | Filed under the SSN |
| Run payroll for 1 employee | Permitted | Not permitted |
| Take card payments through Stripe or PayPal | Form 1099-K issues to the LLC | Form 1099-K issues to the owner |
| Non-US owner | Required | No SSN exists to use |
| File Form 5472 | Filed under the EIN | Not possible |
| Cost at the IRS | $0 | $0 |
| Renewal cost, year 2 onward | $0, an EIN never renews | $0 |
Sources: IRS Form W-9 instructions and IRS Publication 3402 on disregarded-entity taxpayer identification numbers; IRS Instructions for Form 1099-K on the payee TIN a payment settlement entity reports against; 31 CFR 1020.220, the FinCEN Customer Identification Program rule that makes a bank collect a taxpayer identification number for a legal-entity customer. Bank rows reflect the published business-account requirements of Mercury, Relay, Wise, Chase, and Bank of America, verified July 2026.
The IRS treats both numbers as valid taxpayer identification numbers, so the decision is not a tax decision. It is a privacy and access decision. An LLC that signs 20 W-9s in a year with an SSN has handed that 9-digit number to 20 accounting departments. The same 20 forms carrying an EIN expose nothing personal, and the EIN costs $0 at the IRS to obtain.
Read the deeper walkthrough on ein for single member llc, and compare the 2-member path on ein for multi member llc, where the IRS removes the choice entirely.
No SSN. No passport upload.
Do Banks Require an EIN for a Single-Member LLC?
Yes. US banks open a business account for an LLC only against an EIN and the IRS CP-575 letter. No major US bank opens an LLC account on a Social Security Number alone.
This is where the IRS exemption stops mattering. Federal Customer Identification Program rules require a bank to verify a legal entity against a government-issued taxpayer identification number, and for an LLC that number is the EIN. The bank matches 3 documents in order: the state-approved Articles of Organization, the CP-575 letter carrying the EIN, and the owner’s photo identification. A single character of difference between the name on the Articles and the name on the CP-575 stops the account opening, which is why the Articles review is included on both the $97 and the $127 tier.
The same 9 digits carry into the payment stack. Wise Business, Mercury, and Relay each collect the EIN during onboarding. Stripe and PayPal print the tax ID on file onto the LLC’s Form 1099-K, so an SSN there reports a full year of card revenue under the owner’s personal number instead of the LLC’s. An LLC that skips the EIN is left collecting money into a personal account, which erodes the liability separation the LLC was formed to create. See the full document order on EIN for an LLC bank account and what the letter itself contains on the LLC CP-575 letter.
Does a Foreign-Owned Single-Member LLC Need an EIN?
Yes, with no exception. A foreign-owned single-member LLC files Form 5472 and a pro-forma Form 1120 every year under its EIN, even on $0 of income. Missing that filing costs $25,000 per year.
A US owner with 0 employees gets to skip the EIN by IRS rule. A foreign owner never does, and the reason is a single regulation. Since 2017 the IRS has treated a foreign-owned single-member LLC as a corporation for reporting purposes only, which triggers Form 5472 under Internal Revenue Code section 6038A. That return is filed in the LLC’s own name, so the LLC needs its own account number. The penalty for a late or missing Form 5472 is $25,000 per year, and a further $25,000 accrues for each 30-day period the failure continues after IRS notice.
The obligation attaches from year one, including a year with 0 transactions and 0 revenue, because the capital contribution that started the LLC is itself a reportable transaction with a related party. This is the single most expensive thing a foreign owner learns late. Read Form 5472 and the complete EIN for a foreign-owned LLC playbook.
The exemption that covers a US-owned single-member LLC never reaches a foreign-owned one. A US owner without employees files on an SSN and skips the EIN. A foreign owner has no SSN to file under, and the Form 5472 obligation is an entity filing, so the LLC needs its own number in every case.
No SSN is required to obtain it. Form SS-4 line 7b accepts the entry Foreign, and the application goes by fax to 855-215-1627 with a 4 to 7 business day turnaround. The IRS online assistant is closed to applicants holding neither an SSN nor an ITIN, which is what makes the paper route the standard one here.
How Does the IRS Classify a Single-Member LLC on Form SS-4?
The IRS classifies a single-member LLC as a disregarded entity by default. Form SS-4 line 8a marks the LLC, line 8b takes the number 1, and line 9a records the classification permanently.
| Owner and structure | Default classification | Annual federal filing | EIN needed |
|---|---|---|---|
| Single-member, US owner, 0 employees | Disregarded entity | Schedule C on Form 1040 | By choice |
| Single-member, US owner, 1+ employees | Disregarded entity | Form 941 and Form 940 | Required |
| Single-member, foreign owner | Disregarded entity | Form 5472 + pro-forma 1120 | Required |
| Single-member electing S-corp | S corporation | Form 1120-S | Required |
| Two members added | Partnership | Form 1065 with Schedule K-1 | New EIN required |
Source: IRS Form SS-4 instructions for lines 8a, 8b, and 9a, verified July 2026.
What “disregarded entity” actually means
Disregarded describes the tax treatment, not the legal one. The IRS ignores the LLC as a separate taxpayer and reads its income as the owner’s, while the state keeps the LLC fully separate for liability purposes. Nothing about disregarded status removes the EIN requirement in the 6 situations listed above, and nothing about it removes the LLC’s own liability shield.
An LLC changes that treatment by filing Form 8832 for corporate status or Form 2553 for S corporation status. Form 2553 is due within 2 months and 15 days of the start of the tax year the election takes effect. Neither election issues a new EIN: the same 9 digits carry forward. Read Form 8832 for an LLC and what a disregarded entity is.
This page states federal tax rules current as of July 2026. It is not legal or tax advice. Confirm your LLC’s position with a licensed CPA or attorney before filing.
How Does a Single-Member LLC Get an EIN Without an SSN?
Enter Foreign on Form SS-4 line 7b and submit the form by fax: 855-641-6935 for an LLC with a US state address, 855-215-1627 without one. The IRS charges $0 on both numbers.
The IRS online assistant validates the responsible party named on line 7a against SSN and ITIN records, so an applicant holding neither is stopped at that screen. No workaround exists inside the online tool. The paper route is the designed path, not a fallback: the Form SS-4 instructions state the word Foreign as a valid line 7b entry. No passport, no visa, and no US visit is involved at any step.
| Route | Where it goes | Needs SSN or ITIN | Time to EIN | Cost |
|---|---|---|---|---|
| IRS online assistant | irs.gov, Mon–Fri 7 a.m.–10 p.m. ET | Required | 15 minutes | $0 |
| Fax, US state address | 855-641-6935 | Not required | 4 business days | $0 |
| Fax, no US state address | 855-215-1627 | Not required | 4 business days | $0 |
| Mail, Form SS-4 | EIN Operation, Cincinnati, OH 45999 | Not required | 4 weeks | $0 |
| IRS international phone | 267-941-1099, Mon–Fri | Not required | During the call | $0 |
| einforllc.co Standard | We fax it for you | Not required | 16–19 business days | $97 |
| einforllc.co Fast | We file it within 24 hours | Not required | 6 to 8 business days | $127 |
Source: IRS Instructions for Form SS-4, “How to Apply,” verified July 2026. The 4-business-day fax figure is the IRS return-fax time and applies only when the fax cover carries a return fax number; without one the IRS replies by mail instead.
Two limits catch first-time filers. The IRS issues 1 EIN per responsible party per day across every channel, so an owner of 3 LLCs files across 3 separate days. And the paper route carries no tracking number and no online status page, so a rejection surfaces only when a letter arrives. The full walkthrough sits on LLC EIN without SSN.
No SSN. No passport upload.
How Much Does an EIN for a Single-Member LLC Cost?
The IRS charges $0 through all 4 of its channels, and year 2 costs $0 because an EIN never renews. einforllc.co charges $97 to fax Form SS-4 within 7 business days, or that fee is refunded, and $127 to file within 24 hours with the IRS call included.
| Item | Cost | Frequency |
|---|---|---|
| IRS fee for the EIN | $0 | One-time |
| CP-575 confirmation letter | $0 | One-time |
| Articles review, character-by-character name match | Included | One-time |
| Classification check, lines 8a, 8b, 9a | Included | One-time |
| Form SS-4 preparation and filing | Included | One-time |
| IRS phone follow-up | Fast only | Standard is fax, with no IRS calls |
| EIN: Standard | $97 | One-time. Faxed within 7 business days, 16–19 business days total |
| EIN: Fast | $127 | One-time. Filed within 24 hours with the IRS call, 6 to 8 business days total |
| LLC formation, optional add-on | +$197 | Only if you have not formed yet. State filing, first-year registered agent, and operating agreement, plus state filing fees at cost. The agent renews at $99/year |
| Year 2 and every year after | $0 | An EIN never renews. Only the registered agent does, and only if you took the add-on |
What the paid routes charge a single-member LLC
| Route | Price | Written filing deadline | Classification review |
|---|---|---|---|
| DIY at irs.gov | $0 | None | You decide lines 8a, 8b, 9a |
| einforllc.co Standard | $97 | Faxed within 7 business days | Included on every order |
| einforllc.co Fast | $127 | Filed within 24 hours | Included on every order |
| ZenBusiness | $99 | None published | None published |
| Northwest, no-SSN rate | $200 | None published | None published |
| Rocket Lawyer | $59.99 | None published | None published |
Competitor prices verified July 2026. The IRS fee is $0 on every one of these routes.
The honest summary. If you hold a Social Security Number, file at irs.gov and finish in 15 minutes for $0. The $97 exists for owners without an SSN, who face a paper filing, no tracking number, and 3 classification fields that set federal tax treatment for the life of the company. The EIN carries its own price on this page, so an owner whose single-member LLC already exists pays that one line and nothing more. Ready now? You can get your LLC’s EIN or read the full LLC EIN cost breakdown.
No SSN. No passport upload.
Which LLCs Must Have an EIN, by Situation?
6 mandatory triggers, and each one maps to a specific federal return whose entity box accepts a 9-digit EIN and nothing else. A single-member LLC that hits 0 of the 6 is the only LLC the IRS lets operate without one.
| Trigger | Federal form | Filing frequency |
|---|---|---|
| 2 or more members | Form 1065 + Schedule K-1 | Annual |
| Employees on payroll | Form 941 | Quarterly, 4 times a year |
| Employees on payroll | Form 940 (FUTA) | Annual |
| Excise tax on goods or services | Form 720 | Quarterly |
| Heavy highway vehicle use | Form 2290 | Annual |
| Non-US owner, single member | Form 5472 + pro-forma 1120 | Annual, even at $0 income |
Adding a second member is the trigger founders hit most often, and it does more than require an EIN: it reclassifies the LLC as a partnership under 26 CFR § 301.7701-3 and forces a new number rather than a reuse of the old one, per Rev. Rul. 99-5. See EIN for a multi-member LLC and when an LLC needs a new EIN.
The non-US owner trigger is the most expensive to miss. A foreign-owned single-member LLC files Form 5472 with a pro-forma Form 1120 every year even at $0 revenue, and the penalty for skipping it is $25,000 per year under 26 U.S.C. § 6038A. Detail on Form 5472 and EIN for a foreign-owned LLC.
Source: IRS Instructions for Form SS-4 and the form instructions for 1065, 941, 940, 720, 2290 and 5472, verified July 2026.
What Happens If an LLC Operates Without an EIN?
No IRS fine exists for not holding an EIN. The damage arrives through the returns the LLC cannot file without one and the accounts it cannot open, and 6 specific failures follow, each repeating every tax year.
Form 5472 goes unfiled. The IRS assesses $25,000 per year against a foreign-owned single-member LLC, and the clock runs from year one.
Form 1065 goes unfiled. A multi-member LLC cannot file its partnership return, and no member receives a Schedule K-1 for their own return.
Payroll deposits fail. Forms 941 and 940 both open with the employer EIN. Federal tax deposits reject without a valid number.
Bank accounts stay closed. Every US bank and fintech requires the CP-575 letter, so the LLC cannot hold funds in its own name.
Clients withhold at the W-9 stage. A US payer that receives no taxpayer ID applies backup withholding at 24% on payments to the LLC.
The SSN spreads. A US-owned LLC without an EIN hands the owner's Social Security Number to every client vendor file.
The last one is the quiet cost for a US-owned single-member LLC. Filing on the owner's SSN is legal, and it puts that 9-digit number into the vendor file of every client who pays the LLC $600 or more in a year. An EIN costs $0 at the IRS and removes the SSN from that circulation permanently, which is why most owners obtain one even where the IRS does not demand it.
Fixing it late costs nothing extra. An LLC applies late exactly the way it applies on time, on Form SS-4, and the IRS assigns the number with no late fee on the EIN itself. Start at how to get an EIN for an LLC.
When Does a Single-Member LLC Need a Second EIN?
3 events, all structural. Adding a member converts the LLC to a partnership. Bankruptcy proceedings start a new entity. Forming a genuinely new legal entity needs its own number. Everything else keeps the original EIN.
Rev. Rul. 99-5 governs the first case: a single-member LLC that admits a second member is treated as a partnership from that date, and the partnership takes a new EIN. Rev. Rul. 99-6 covers the reverse, when a multi-member LLC drops to 1 member. Both rulings turn on the number of members, not on the amount of money involved.
What does not trigger a new number is longer and more useful: a name change, a move between states, a new registered agent, a new address, a first employee, a Form 8832 election to be taxed as a corporation, or a Form 2553 S-corporation election. Each keeps the existing EIN. See when an LLC needs a new EIN and LLC name change and the EIN.
The test is whether the entity changed, not whether the paperwork did. A single-member LLC that admits a second member becomes a partnership under Rev. Rul. 99-5, and that is a new entity needing a new number. A rename, a move between states and a tax election all leave the entity intact.
An LLC that applies for a second number it did not need ends up holding 2 EINs against 1 company. Both look valid until returns filed under the 2 numbers produce mismatch notices, and retiring the surplus takes a written request to the IRS that runs 6 to 8 weeks.
Source: IRS — Do You Need a New EIN?, verified July 2026.