EIN Guide for a Michigan LLP

An Employer Identification Number, or EIN, is a nine-digit number the IRS issues to identify a business for federal tax purposes. Think of it as a Social Security number for the partnership — the identifier the IRS, banks, and other institutions use to recognize the entity rather than the individuals behind it.

For a limited liability partnership, the EIN is not optional. A partnership with two or more partners is required to have an EIN because it files a partnership tax return, and the EIN is how the IRS ties that return to your specific partnership. There is no version of a properly run LLP that operates without one.

Why the EIN is unavoidable for a partnership

• It files a partnership return: An LLP files a federal Form 1065 informational return each year, and the EIN identifies the filer.
• It issues K-1s: The partnership reports each partner's share of income on a Schedule K-1, which flows from the partnership's EIN-identified return to the partners' personal returns.
• Banks require it: You cannot open a business bank account in the partnership's name without an EIN.
• Payroll needs it: If the LLP has employees, the EIN is central to payroll tax reporting.

A single-owner business can sometimes get by on a personal Social Security number, but an LLP is by definition a multi-partner entity, so that shortcut never applies here.

The good news is that getting an EIN is free, fast, and done directly with the IRS. You never need to pay a government fee for an EIN, and you should be skeptical of anyone who implies otherwise.

The online application

Applying through the IRS EIN Assistant at IRS.gov is the quickest option. The application takes roughly ten minutes and issues the number immediately upon completion — you can print the confirmation and start using the EIN the same day.

A few things to know before you start:

• Have your details ready: The partnership's legal name as registered with LARA, its Michigan address, the responsible party's information, and the type of entity (a partnership).
• The responsible party: The IRS asks for a responsible party — a partner who controls or manages the LLP — along with their Social Security number or ITIN.
• One session: The online application must be completed in a single session; it does not save partway through, so gather everything first.
• Business hours: The online tool is available during set hours on IRS business days, not around the clock.

If you cannot apply online

A responsible party without a U.S. Social Security number or ITIN cannot use the online tool. In that case, apply by fax or mail using Form SS-4. Fax applications typically process in a few business days; mail takes longer. International applicants can also apply by phone through the IRS process for foreign applicants.

Timing matters a little. It is cleanest to register the LLP with LARA first, so the partnership legally exists under its registered name, and then obtain the EIN using that exact name. Applying for the EIN before the entity is registered can create a mismatch between the name on the EIN and the name on the state record, which causes friction at the bank later.

Sequence

1. Register the LLP with LARA so the partnership exists under its official name.
2. Apply for the EIN using that registered name.
3. Open the business bank account with the LLP registration confirmation and the EIN confirmation in hand.

Keep the confirmation safe

The IRS issues a confirmation notice (the CP 575) when it assigns your EIN. Save it — banks and other institutions frequently ask to see it, and getting a replacement later is more of a hassle than simply filing the original away. Store a copy with your other formation documents.

What the EIN is used for day to day

Once you have it, the EIN appears on the partnership's tax filings, on the K-1s issued to partners, on payroll filings if you have employees, and on the paperwork to open financial accounts. It stays with the partnership for its life; you generally do not need a new one unless the entity's structure fundamentally changes.

A few points come up repeatedly for LLP partners, and it helps to address them directly.

One EIN per partnership

The LLP gets a single EIN for the entity. Individual partners do not each get an EIN for the partnership — they use their own Social Security numbers on their personal returns where they report their K-1 income. The partnership's one EIN covers the entity's filings.

The EIN is federal, not a Michigan number

An EIN is issued by the IRS and is a federal identifier. It is separate from any Michigan tax registration. If the LLP has activity that requires Michigan tax accounts — sales tax, employer withholding — those are registered with the Michigan Department of Treasury separately, and the EIN is typically used as part of that registration. Do not confuse the free federal EIN with state tax registration.

Watch out for paid EIN services

Because the EIN is genuinely free and the IRS application is straightforward, there is no reason to pay a third party solely to obtain one. Some services bundle EIN acquisition into a broader formation package, which can be a convenience, but the number itself never carries a government fee. If a site presents itself as the official EIN source and charges for the number, treat that as a red flag.