Hey everyone, I just filed my LLC articles with the state last week, and the processing time is around 3-4 weeks. I want to get an EIN now so I can open a business bank account and start setting things up. Has anyone applied for an EIN while their LLC was still pending? I read that you can apply as a sole proprietor using your SSN, but then the EIN would be tied to my SSN, not the LLC. Would I need to get a new EIN after the LLC is approved? Any advice appreciated.
LLC filing
I want to apply for an EIN while my LLC filing is pending
You can apply for an EIN using the LLC's name as soon as the state accepts the filing, even if it's pending. The IRS doesn't verify state approval. Just use the formation date you expect. I did this last year and had no issues.
Actually that's not quite right. The IRS instructions say you should apply after the entity is formed. If you apply before, the EIN is technically for a disregarded entity or sole prop, and you'd need a new EIN once the LLC is official. But in practice, many people apply early and it works. Just don't be surprised if you have to file an SS-4 again later.
Why not just wait? 3-4 weeks isn't that long. Patience saves you a potential headache.
I get that, but I have a contract starting next month and need to invoice under the LLC name. My bank won't open an account without an EIN. So waiting isn't ideal.
Most banks will accept the EIN confirmation letter even if the LLC is still pending, as long as you have your state filing receipt. Have you asked your bank what they need?
That's true, but some banks are stricter. If you apply for an EIN now, you might get one uNder the LLC name but with the responsible party as you. That's fine for most purposes. The biggerr issue is if you later need to change the entity type on the EIN. It's a hassle but not impossible.
I applied for an EIN the day after I filed my articles. Got it online in 10 minutes. Used the LLC name and my SSN as responsible party. No problems so far. Bank accepted it.
Sure, but what happens when the IRS cross-references with the state and sees the LLC wasn't formed yet? Probably nothing, but I'd rather not risk it.
The IRS doesn't cross-reference state formation dates in real time. They rely on you to provide accurate info. So it's on you if you lie. But if you use the expected formation date, it's fine.
Just call the IRS and ask. They're surprisingly helpful. I did that for a different issue and got a clear answer.
Calling the IRS is a coin toss. You might get someone who knows their stuff or someone who reads from a script. The instructions are clear enough: apply after formation. But if you're in a bind, apply early and amend laater if needed.
Thanks all. I think I'll try applying online with the expected formation date and see what happens. If I get pushback from the bank or IRS, I'll deal with it then. Worst case I file again.
Let us know how it goes. I'm curious if the online system flags anything when you enter a future date.
It didn't for me. I put a date two weeks ahead, and it went through.
Famous last words. Good luck though.
One more thing: if you're the only member, the LLC is disregarded for tax purposes by default, so the EIN is essentially for the LLC but you report on your personal return. So the early EIN isn't a big deal. If you elect S-corp later, you'll need a new EIN anyway.