Yes, a disregarded entity can have its own Employer Identification Number, and in several situations it is legally required to get one. The IRS ignores the entity for federal income tax purposes, but treats it as separate for employment taxes, excise taxes, and certain international reporting — each of which forces the entity onto its own EIN.1Internal Revenue Service. Limited Liability Company (LLC) Even where no rule compels it, banks, state agencies, and vendors usually push owners in the same direction.
When Federal Law Requires the Entity’s Own EIN
The IRS disregards a single-member LLC for income tax, but for employment and excise taxes it treats the entity as fully separate from its owner.1Internal Revenue Service. Limited Liability Company (LLC) That separate treatment is what triggers the EIN requirement in four common situations.
- Employees. A disregarded entity with employees must obtain its own EIN to report and pay employment taxes. Form 941, the quarterly employment tax return, uses the entity’s EIN, not the owner’s SSN.2Internal Revenue Service. Instructions for Form 941 (03/2026)
- Excise taxes. An eligible single-owner disregarded entity that owes federal excise tax pays and reports it under the entity’s own EIN, per the Form 720 instructions, not the owner’s taxpayer identification number.3Internal Revenue Service. Instructions for Form 720 (Rev. December 2025)
- Retirement plans. If the entity sponsors a qualified retirement plan, the plan generally needs an EIN tied to the sponsoring entity.
- Foreign ownership. A U.S. disregarded entity wholly owned by a foreign person must get its own EIN to file Form 5472 attached to a pro forma Form 1120. The penalty for missing the filing is $25,000 per form, plus another $25,000 for each 30-day period the failure continues after IRS notice, with no cap.4Internal Revenue Service. International Information Reporting Penalties
The foreign-owned rule catches a lot of owners off guard. On Form SS-4, a foreign-owned U.S. disregarded entity checks “Other” for entity type and writes “Foreign-owned U.S. disregarded entity-Form 5472.”5Internal Revenue Service. Instructions for Form SS-4 These applications cannot be submitted online — they must be faxed or mailed.6Internal Revenue Service. Instructions for Form 5472
Practical Reasons to Get One Anyway
Most banks want an EIN before they open a business account, even for a single-member LLC. The IRS acknowledges this directly and treats it as a valid reason to apply: if a disregarded entity needs an EIN to open a bank account, it can get one.7Internal Revenue Service. Single Member Limited Liability Companies Keeping business and personal money in separate accounts is also how you preserve the liability shield your LLC provides. Commingling funds is the classic fact pattern courts point to when they pierce the corporate veil.
Some states also require an EIN for business licensing or state tax registration regardless of federal classification, and the IRS accepts that as a reason to issue one.7Internal Revenue Service. Single Member Limited Liability Companies Privacy is a smaller but real factor: using an EIN on W-9s and vendor paperwork keeps your SSN out of circulation.
Which Number Goes on W-9s and 1099s
Having two identification numbers is where disregarded entity owners get into trouble. On Form W-9, the owner’s name goes on line 1 and the entity’s name goes on line 2. The taxpayer identification number is the owner’s — SSN or EIN — not the disregarded entity’s separate EIN.8Internal Revenue Service. Instructions for the Requester of Form W-9 For income tax purposes the owner is the taxpayer, so the owner’s TIN is what payers need for 1099 reporting.
Handing a client the entity’s EIN instead can produce a name/TIN mismatch. When a payer is notified of a mismatch or doesn’t receive a correct TIN, the payer must withhold 24% of your payments as backup withholding.9Internal Revenue Service. Topic No. 307, Backup Withholding You get the money back when you file, but a quarter of your revenue frozen for months is a serious cash-flow problem.
A simple rule keeps it straight: the owner’s TIN goes on anything about income; the entity’s EIN goes on anything about employment or excise obligations.
How to Apply
The fastest route is the IRS online application at IRS.gov/EIN. If your principal place of business is in the U.S. or a U.S. territory, you can complete it in minutes and receive the EIN immediately. There’s no fee. The system allows only one EIN per responsible party per day.10Internal Revenue Service. Get an Employer Identification Number
If you can’t use the online system, you can submit Form SS-4 by fax or mail. International applicants can also apply by phone at 267-941-1099 during business hours; the phone option is not available to domestic applicants.5Internal Revenue Service. Instructions for Form SS-4
On the form, a disregarded entity checks “Other” on line 9a and writes “disregarded entity.” If you’re applying because you’re electing corporate status on Form 8832 or Form 2553, check “Corporation” instead and note “Single-member” with the return type you’ll file.5Internal Revenue Service. Instructions for Form SS-4 Every application also lists a responsible party — the individual who owns or controls the entity and its funds. It must be a person, not another entity, and you provide their name and SSN or ITIN.11Internal Revenue Service. Responsible Parties and Nominees For a single-member LLC, that’s almost always the sole owner.
When a Change in Your Business Means a New EIN
You need a new EIN when the ownership or structure changes enough to create a different taxpayer. Add a second member and your single-member LLC stops being disregarded — by default it’s a partnership, and a new EIN is required.12Internal Revenue Service. When to Get a New EIN Terminating the LLC and forming a new entity also requires a new one.
Electing corporate classification is different. If your disregarded entity already has an EIN and files Form 8832, it keeps the same EIN. The IRS is direct on this point: an entity that already has an EIN retains it when its federal tax classification changes. Don’t apply for a new one.13Internal Revenue Service. Form 8832, Entity Classification Election A disregarded entity without an EIN that elects corporate status must apply then, because it can no longer use the owner’s number.
An EIN Does Not Change Your Tax Classification
Getting an EIN does not convert a disregarded entity into anything else. A single-member LLC with its own EIN is still disregarded — income and expenses still land on the owner’s return, typically Schedule C for an individual owner.7Internal Revenue Service. Single Member Limited Liability Companies The EIN just gives the entity a number for the narrow purposes that require one: employment tax filings, excise returns, bank accounts, and state registrations. Changing your actual classification takes an affirmative election on Form 8832.