Getting an EIN for Your Washington LLC

An Employer Identification Number (EIN) is a nine-digit federal tax identification number issued by the IRS. It functions as a Social Security number for your business — a unique identifier the federal government and financial institutions use to recognize your LLC.

An EIN is federal. It is completely separate from anything Washington issues, including your UBI number (the Unified Business Identifier the state assigns for state-level accounts). Your Washington LLC will end up with both: a UBI for the Secretary of State and Department of Revenue, and an EIN for the IRS and your bank.

When you need an EIN

• Multi-member LLC. Any LLC with more than one member must have an EIN, because it files a partnership return by default.
• Hiring employees. If you will have employees, you need an EIN to handle payroll and employment taxes.
• Opening a business bank account. Most banks require an EIN to open an account in the LLC's name.
• Corporate tax election. If you elect S-corporation or C-corporation treatment, you need an EIN.

A single-member LLC with no employees can technically use the owner's Social Security number for federal taxes, but nearly everyone gets an EIN anyway. It keeps your SSN off business paperwork, is usually required to open a bank account, and makes your business look more established to vendors and partners.

The IRS issues EINs directly and at no cost. Be careful with third-party sites that charge a fee to "obtain" an EIN — the number itself is always free from the IRS.

The online application (fastest)

The quickest route is the IRS EIN Assistant at IRS.gov. Key facts about it:

• It is free and available during posted IRS hours (generally weekday business hours, Eastern time).
• You complete it in one session — it does not save partway through — so gather your information first.
• The EIN is issued immediately at the end, and you can download and print the confirmation letter (CP 575) right away.
• You need a valid US Social Security number or ITIN for the responsible party to apply online.

Applying without an SSN or ITIN

If the responsible party does not have a US SSN or ITIN — common for non-US owners — you cannot use the online tool. Instead, you file Form SS-4 by fax or mail. This takes longer, but it is the standard path for international owners forming a Washington LLC.

Timing tip

Wait until your LLC is actually formed before getting the EIN. The EIN is tied to the legal entity, so it makes sense to have the Certificate of Formation filed first, then apply for the EIN for the now-existing LLC.

Having the right information ready makes the online application quick. Before you start, gather:

• The LLC's legal name exactly as it appears on your filed Certificate of Formation
• The formation state (Washington) and formation date
• The mailing address for the LLC
• The responsible party's name and SSN or ITIN — the responsible party is generally the person who owns or controls the LLC
• The number of members and your expected federal tax classification
• Your reason for applying (started a new business, hiring employees, banking, and so on)

The responsible party is a specific IRS concept: the individual who ultimately owns or controls the entity, or exercises effective control over it. For a single-member LLC, that is usually the owner. For a multi-member LLC, it is one of the members designated to serve in that role. The IRS wants a real person here, not another entity, in most cases.

The EIN is one piece of a larger setup for a Washington LLC. Here is how it connects to the state-level items so you can sequence things sensibly.

Order of operations

1. Form the LLC by filing the Certificate of Formation with the Secretary of State. Washington assigns your UBI number in the process.
2. Get the EIN from the IRS once the LLC exists.
3. Register with the Department of Revenue for your state business license, using your UBI and EIN, and set up your B&O tax account.
4. Open a business bank account using your filed Certificate of Formation, EIN confirmation, and operating agreement.

EIN versus UBI

It is worth being clear on the difference, because people mix them up. The EIN is federal, from the IRS, used on federal tax returns and by your bank. The UBI is Washington's, from the state, used across the Secretary of State, Department of Revenue, and Employment Security Department. You need both, and they serve different systems. Keep both numbers somewhere safe and accessible, because you will reference them repeatedly.

A few avoidable errors trip up new LLC owners around the EIN.

• Paying a third party for a free number. The IRS never charges for an EIN. If a site is charging a fee just to get the number, you are paying for something that is free directly from IRS.gov.
• Applying before the LLC exists. Get the entity formed first so the EIN attaches to a real, filed LLC.
• Confusing the EIN with the UBI. They are different numbers from different governments. Do not use one where the other is required.
• Losing the confirmation letter. Save the CP 575 confirmation the moment it is issued online — the IRS does not easily reissue it, and banks often want to see it.
• Getting the responsible party wrong. Name the actual owner or controlling individual, not a placeholder, and keep that information consistent with your other filings.

Handled correctly, the EIN is one of the easier steps in setting up a Washington LLC — a ten-minute online application that gives you a number you will use for the life of the business.