EIN for LLC
LLC or EIN First? The Correct Order (2026)
Form the LLC first, then get the EIN. Applying for an EIN before your LLC exists risks a name mismatch or a duplicate EIN. Here is the correct setup sequence.
Last updated: July 10, 2026
Form your LLC first, then get the EIN. You should register the LLC with the state before applying for an EIN because the IRS asks for your exact legal entity name and formation details on the application, and applying before the LLC exists can create a mismatch or a duplicate EIN. Sole proprietors are the exception — they can get an EIN without forming any entity. An LLC and an EIN are not alternatives; most LLCs need both.
New founders often ask whether the LLC or the EIN comes first, and sometimes treat them as competing choices. They are not. The LLC is your business; the EIN identifies it — and the LLC must exist before the EIN.
This guide gives the direct answer and its one exception, explains why LLC-first matters, walks through the correct setup order, reframes the "which is better" question, clarifies whether you need both, and covers the non-resident case. For the LLC tax-ID basics, see EIN for LLC.
LLC or EIN First? The Direct Answer
Form the LLC first, then get the EIN. The one exception is a sole proprietor, who can get an EIN with no entity at all because the person is the business.
| Your situation | Do this first | Then |
|---|---|---|
| Forming an LLC | Register the LLC with the state | Apply for the EIN |
| Forming a corporation | Incorporate with the state | Apply for the EIN |
| Sole proprietor (no entity) | Nothing to form | Apply for the EIN directly |
| Non-resident LLC owner | Form the US LLC | Apply for the EIN by fax |
The rule is consistent: whenever a legal entity is involved, create the entity first. Only a sole proprietor skips entity formation, because there is no separate entity to register.
Why Order Matters
Why Does Forming the LLC First Matter?
Forming the LLC first matters because the EIN application asks for your exact legal entity name and state of formation. Applying before the LLC exists risks a name mismatch or a duplicate EIN.
- Name matching. The IRS ties the EIN to the legal name you enter. If the LLC is not yet approved, the name may not match state records, creating a mismatch.
- Duplicate EINs. Applying too early, then reapplying after formation, can leave you with two EINs for one business — a problem that requires IRS correspondence to fix.
- Formation details. The application asks for the state and formation date. These do not exist until the LLC is officially registered.
Getting the order wrong is one of the more common and annoying setup mistakes. If your entity name later changes, that is a separate process — see EIN name change. Forming first avoids the issue from the start.
What Is the Correct Order to Set Up a Business?
The correct order is: choose your state, file the formation documents, get the EIN, then open a business bank account. Each step depends on the one before it.
Choose your state of formation
Pick where to register your LLC. Non-residents often choose Wyoming or Delaware for their business-friendly rules.
File the LLC formation documents
Register the LLC with the state and wait for approval. This creates the legal entity with an official name and formation date.
Apply for the EIN
Once the LLC is approved, apply for the EIN using the exact legal name. See how to get an EIN. Non-residents apply by fax with Form SS-4.
Open a business bank account
Use the LLC documents and EIN to open a business account. This is the step that requires both the entity and the EIN to exist.
Following this order once, correctly, prevents rework. Skipping ahead to the EIN before formation is where mismatches and duplicates come from.
Not Substitutes
Do You Need Both an LLC and an EIN?
Most businesses need both an LLC and an EIN, because they do different jobs. The LLC is the legal entity; the EIN is the tax ID. Choosing between them is a misunderstanding.
An LLC is a business structure that separates your personal assets from business liabilities. An EIN is a 9-digit federal tax identification number that lets the business file taxes, open a bank account, and hire employees. The LLC answers "what is my business, legally?" The EIN answers "how does the IRS identify it?" A single-member LLC with no employees can sometimes report taxes under the owner's SSN, but nearly all get an EIN for banking and privacy — see does a single-member LLC need an EIN. The two work together: the LLC is the container, the EIN is its identifier.
Non-Resident Angle
How Do Non-Residents Sequence the LLC and EIN?
Non-residents form the US LLC first from abroad, then apply for the EIN without an SSN. The order is identical to domestic owners; only the EIN application method differs.
A non-US resident registers the US LLC with a state (commonly Wyoming or Delaware) while outside the country, using a registered agent for the US address. Once the LLC is approved, the non-resident applies for the EIN by fax with Form SS-4, because the instant online tool requires an SSN they do not have. See how to get an EIN without an SSN for the full non-resident process. The EIN then enables opening a US business bank account and filing required forms. ein.so files the EIN for non-residents once the LLC exists.
Frequently Asked Questions
Should I form my LLC before getting an EIN?
Yes. Form the LLC with the state first, then apply for the EIN. The IRS asks for your exact legal entity name and formation details on the application, so the LLC should exist first. Applying before the LLC is approved risks a name mismatch or a duplicate EIN that is difficult to correct later.
Can I get an EIN before my LLC is approved?
You can technically apply, but you should not. The EIN application asks for the LLC's legal name and state of formation, and if the LLC is not yet approved, the details may not match state records. This can create a mismatched or duplicate EIN. Wait until your LLC is officially formed, then apply.
Do I need both an LLC and an EIN?
Most LLCs need both. The LLC is your legal entity, providing liability protection and a formal structure. The EIN is your federal tax ID, needed for banking, hiring, and taxes. They are not alternatives — the LLC is the business, and the EIN identifies it to the IRS. A single-member LLC with no employees can sometimes use an SSN, but usually gets an EIN too.
Can a non-resident form an LLC then get an EIN?
Yes. A non-US resident forms a US LLC with a state first, then applies for the EIN by fax using Form SS-4, since the instant online tool requires an SSN. The LLC-first order is the same. Once formed, the non-resident gets the EIN to open a US bank account and file required tax forms.
Which is better, an EIN or an LLC?
Neither is better because they are not substitutes. An LLC is a legal business structure that protects your personal assets. An EIN is a tax identification number. You do not choose between them — you form the LLC for the structure and get the EIN to identify it for tax and banking. Most businesses have both.
What happens if I get the EIN before forming the LLC?
If you apply for an EIN under a business name before the LLC exists, the EIN may be tied to the wrong entity type or a name that does not match state records. Fixing this can require corresponding with the IRS or, in some cases, obtaining a new EIN. Forming the LLC first avoids the problem entirely.
Do sole proprietors need to form anything before getting an EIN?
No. A sole proprietor can get an EIN without forming any entity, because there is no separate legal entity to register. The sole proprietor applies using their own name as the responsible party. This is the one case where you do not form a business entity first — the person is the business.
How long after forming an LLC should I get the EIN?
Get the EIN as soon as the LLC is officially approved by the state. There is no waiting period, and you need the EIN before opening a bank account or hiring. US owners with an SSN can get it online instantly; non-residents apply by fax and receive it in about 4-7 business days.
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