Getting an EIN for Your Montana LLP

Issued by the IRS, an Employer Identification Number is a nine-digit federal tax ID. Think of it as the business equivalent of a Social Security number: it identifies the partnership to the federal government, banks, and other institutions. You'll use it on tax filings, when opening a business bank account, and when hiring employees.

For a limited liability partnership, the EIN isn't optional the way it sometimes is for a single-owner business. A single-member LLC with no employees can, in some cases, use the owner's Social Security number for federal purposes. An LLP can't. Because an LLP has two or more partners and files a partnership tax return, the IRS requires it to have its own EIN. There's no scenario where a functioning Montana LLP operates without one.

What you'll use the EIN for

• Filing the partnership's federal return, Form 1065, and issuing K-1s to the partners
• Opening a business bank account (banks require the EIN for a partnership account)
• Registering for Montana tax accounts, including withholding if the LLP has employees
• Hiring and paying employees, and handling payroll tax reporting
• Establishing the partnership's identity with vendors, lenders, and clients

The sequence matters. Get the EIN after the Statement of Qualification is filed and the LLP is registered with the Montana Secretary of State, but before you open a business bank account. The reason for this order is practical: the bank will typically want to see both the filed registration confirming the LLP exists and the EIN confirming its federal tax identity. Applying for the EIN after registration also ensures the partnership's legal name is settled, so the EIN is tied to the correct, final name.

If you apply for the EIN before the partnership is registered, you risk a mismatch between the name on the EIN and the name on the state registration, which creates friction with banks and on tax filings. Register first, then get the EIN, then open the account.

Applying for an EIN is free, and the fastest way is the IRS online application. Be wary of third-party sites that charge a fee to "obtain" an EIN for you — the IRS issues them at no cost, and you can do it yourself in minutes.

The online application

Apply through the IRS EIN Assistant at IRS.gov. The application walks you through a short series of questions about the partnership. When it's complete, the EIN is issued immediately — you can download the confirmation and start using the number the same day. The online tool is available during the IRS's posted hours and must be completed in one session; it doesn't save partial progress.

What you need before you start

• The partnership's legal name exactly as registered, and any assumed business name
• The partnership's principal office address
• The name and taxpayer ID (SSN or ITIN) of the responsible party — typically a managing partner
• The number of partners and the reason for applying (started a new business)
• Information about expected employees, if any

If you don't have a US taxpayer ID

The online application requires the responsible party to have a US Social Security number or ITIN. If the responsible party doesn't have one, the partnership applies by fax or mail using Form SS-4. This takes longer — fax applications typically return the EIN within a few business days and mail applications take several weeks — so plan accordingly.

The IRS asks for a "responsible party" on the application — the individual who ultimately controls or manages the partnership. For an LLP, this is usually one of the partners, often a managing partner. The responsible party must be a real person, not another entity, and their taxpayer ID is used on the application. Choose someone who will remain involved with the partnership, since the IRS treats this person as the point of contact.

Mistakes to avoid

• Applying before the name is final. Get the EIN under the exact registered name to avoid mismatches.
• Paying a third party. The EIN is free from the IRS. Don't pay a service that simply fills out the free form for you unless it's bundled into a formation package you're using for other reasons.
• Losing the confirmation. Download and save the EIN confirmation (the CP 575 notice) immediately. You'll be asked for it by banks and it's inconvenient to retrieve later.
• Applying for more than one EIN. The partnership needs exactly one EIN. Applying multiple times creates confusion in IRS records.

Once the EIN is issued, it becomes the partnership's permanent federal identifier. It doesn't expire and generally doesn't change over the life of the LLP, even if you change your registered agent or principal office. You will, however, need to keep the IRS informed of changes to the responsible party by filing the appropriate update.

What comes next

With the EIN in hand and the LLP registered, you can open the partnership's bank account, register for any required Montana tax accounts, and set up payroll if you're hiring. The EIN is the key that unlocks the rest of the operational setup, which is why getting it promptly after registration keeps the whole formation process moving. If Mainstay Filing is handling your formation, we can point you to the right IRS resource and help you sequence the EIN correctly relative to your state registration and bank setup.