How to Get an EIN for Your Vermont LLC

An Employer Identification Number, written in the format XX-XXXXXXX, is issued by the Internal Revenue Service to identify a business for federal tax purposes. Think of it as a Social Security number for the company. Once the IRS assigns it, the number belongs to your LLC permanently — it does not expire, and it is never handed to a different taxpayer later.

The name is a little misleading. You do not need employees to need an EIN. The number simply lets the IRS, banks, and other parties identify your Vermont LLC as a distinct entity, whether or not you ever run payroll.

What you actually use it for

• Opening a business bank account — nearly every Vermont bank and credit union wants an EIN before opening a checking account in the LLC's name.
• Filing federal returns — a multi-member LLC files a partnership return (Form 1065) and must have an EIN; an LLC that has elected S-corp treatment files Form 1120-S and needs one too.
• Hiring — payroll, employment tax deposits, and W-2s all run under the EIN.
• Vermont tax accounts — when you register with the Vermont Department of Taxes for sales and use tax or employer withholding, you will supply the EIN.
• Vendor paperwork — clients and suppliers routinely ask for your EIN on a Form W-9 so they can report payments to you.

It is free

The IRS charges nothing for an EIN. You apply directly at IRS.gov. Some services charge a fee to obtain one on your behalf — that fee pays for their handling, not for the number, which is free either way. If you would rather not deal with the form, that is a fair reason to have someone do it, but know what you are paying for.

Whether the EIN is mandatory or merely a good idea depends on how your Vermont LLC is structured and how you plan to operate.

Multi-member LLCs

A Vermont LLC with two or more members is taxed as a partnership by default, and a partnership must file Form 1065. That return cannot be filed without an EIN. So if your LLC has more than one member, the EIN is not optional — you need it before any federal filing and before opening the company's bank account.

Single-member LLCs

By default a single-member Vermont LLC is a disregarded entity: the IRS looks through it and treats the income as the owner's, reported on Schedule C with the owner's Social Security number. In theory, a single-member LLC with no employees could operate on the owner's SSN alone. In practice, almost every owner should still get an EIN, because:

• Banks require it. Most will not open a business account without one, whatever the ownership count.
• Privacy. Every W-9 you sign would otherwise carry your Social Security number into a vendor's files. An EIN keeps your SSN off business paperwork.
• Future-proofing. The day you add a member, hire someone, or elect S-corp status, you will need an EIN anyway. Getting it up front is easier than backtracking.

Any LLC with employees

An LLC of any size that has even one employee must have an EIN. Withholding, Vermont employer registration, and W-2 reporting all key off that number.

For most Vermont owners with a US Social Security number or ITIN, the online EIN application is the way to go. It is free and it produces the number on the spot.

Before you start

• You need a valid Social Security number or Individual Taxpayer Identification Number for the responsible party.
• The application runs in a single session — the IRS system does not save partial progress and will time out if you stall.
• Have your details ready: the LLC's exact legal name as filed with the Vermont Secretary of State, its address, and a short description of what the business does.

The steps

1. Open the EIN Assistant on IRS.gov.
2. Choose "Limited Liability Company" as the entity type.
3. Enter the number of members and Vermont as the state of formation.
4. Provide the LLC's legal name, address, and the responsible party's information.
5. Answer a few questions about why you are applying and what the business does.
6. Review and submit.

The EIN appears immediately on a confirmation screen. Save or print it right away — that is your assignment notice, and you will need it at the bank. The IRS also mails a paper confirmation (the CP575) to your address within a few weeks.

Who is the "responsible party"?

The responsible party is the person who owns or controls the LLC — for a single-member company, the owner; for a multi-member company, one member chosen to receive IRS correspondence. That person's SSN or ITIN goes on the application.

If you do not have a US SSN or ITIN, the online tool is closed to you. You apply instead with Form SS-4, by fax or by mail. Vermont's openness to out-of-state and international owners means this comes up fairly often.

Form SS-4 by fax

Fax is the quicker of the two routes for international applicants. Send the completed SS-4 to the international fax number in the form's instructions; the IRS usually issues the EIN within about four business days and follows up with written confirmation by mail.

Form SS-4 by mail

Mailing the SS-4 is the slowest option, typically several weeks. Use it only when fax is not available to you.

Considering an ITIN

A non-US resident who plans to own a Vermont LLC for the long haul may want an Individual Taxpayer Identification Number, applied for on Form W-7. An ITIN lets you file US returns and can smooth out later tax administration, though the application itself takes several weeks.

Third-party designee

If you want a US-based accountant or attorney to receive the EIN for you, name them as a third-party designee on the SS-4. They obtain the number and pass it to you.

An EIN sticks with the LLC it was issued to. A few changes, though, either force a new number or leave the old one untouched.

You need a new EIN when

• You convert the LLC into a corporation. The corporation is a different kind of entity and gets its own EIN; the LLC's does not carry over.
• The entity type shifts. If a single-member LLC becomes multi-member (or the reverse), the IRS may require a new EIN depending on how the change is handled — confirm with a tax advisor before assuming either way.
• You form a brand-new LLC to take over an acquired business. The new LLC needs its own EIN regardless of the prior owner's number.

You keep the same EIN when

• You rename the LLC. File the name change with the IRS on Form 8822-B and amend your Articles with the Vermont Secretary of State; the EIN stays put.
• You move. An address change on Form 8822-B does not touch the EIN.
• You swap registered agents or switch between member- and manager-managed. These are Vermont state-level changes that have nothing to do with the federal EIN.

The application is short, but the same errors trip people up often enough to flag.

Applying before the LLC exists

The form asks for your LLC's legal name and state of formation. If you apply before the Vermont Secretary of State has recorded your Articles of Organization, the company does not yet exist under that name. Form the LLC first, then apply, so the EIN and the state record match. Many banks want to see both the filed Articles and the EIN letter when you open an account.

Letting the session lapse

The online application does not save progress and times out. Gather everything first — legal name, address, responsible party's SSN, and a description of the business — so you can finish in one sitting.

Paying for something that is free

The EIN costs nothing from the IRS. If a service lists a separate charge for "EIN filing," that is a fee for their labor, not for the number. Apply yourself at IRS.gov if you would rather not pay it.

Losing the confirmation

When the online application finishes, the EIN shows once, on the confirmation screen. Print or save it then and there. Close the window without saving and you will wait weeks for the mailed CP575, because the IRS will not email the number to you.