Should You Get an EIN Before Your LLC Is Approved?

You can apply for an EIN before your LLC is approved, but the IRS now recommends against it, and for most people forming a single LLC the smarter move is to wait until the state approves your formation documents. The application system won’t stop you from getting an EIN early, but doing so creates real risks with no meaningful upside for most owners.¹

What the IRS Now Says

The IRS EIN application page is direct: “Form your entity through your state before you apply for an EIN. If you don’t form your entity with your state first, your EIN application may be delayed.”¹ This is a fairly recent addition to the guidance and it contradicts what most LLC formation websites still tell people.

Nothing in the system enforces the order, though. The online application won’t reject you for not having a formed LLC. You enter your Social Security number or Individual Taxpayer Identification Number as the “responsible party,” and the IRS issues the EIN.² The question isn’t whether you can. It’s whether you should.

Why Waiting Is Usually the Better Call

Your Chosen Name Might Not Clear State Review

When you apply, you give the IRS your LLC’s legal name. If the state later rejects that name because it’s too similar to an existing entity or fails a naming rule, your EIN is now tied to a name that doesn’t match the LLC you actually formed. Fixing it means writing to the IRS to request a name change or reporting the corrected name on your first tax return.³ In some cases the IRS may decide you need an entirely new EIN instead.

An Early EIN Won’t Get You a Bank Account

The most common reason people rush is to open a business bank account. It rarely works. Banks want to see state-filed formation documents, whether that’s Articles of Organization, a Certificate of Organization, or a Certificate of Formation, before they’ll open an LLC account. The EIN by itself isn’t enough. So the main perceived advantage of applying early doesn’t actually exist for most owners.

You Can’t Undo an EIN

If the LLC formation falls apart, the EIN doesn’t go away. The IRS cannot cancel an EIN once assigned. You can ask the IRS to close the business account tied to it by mailing a letter that includes the EIN, the entity’s legal name, address, and your reason for closing.⁴ The EIN itself stays permanently attached to that entity name and is never reissued.

Put those three together and the pattern is clear. Applying early gives you a number you probably can’t use yet, tied to a name that isn’t final, that you can’t take back if plans change.

When Applying Early Might Still Make Sense

There are situations where the timing matters less. If your state name search has already cleared and you’re confident the formation will go through as filed, the name-mismatch risk shrinks. If you’re working against a deadline where the EIN itself unlocks something on your side (a payroll setup with a service that only needs the number, for example, not a bank account), the early filing can save days.

Even then, the IRS warns that applying before state formation “may be delayed.”¹ The online application usually issues the EIN immediately, so a delay flag from the IRS means real friction. Weigh the days you’d save against the days you might lose.

Do You Even Need an EIN?

Some LLC owners don’t need one at all. A single-member LLC with no employees and no excise tax liability doesn’t need an EIN for federal tax purposes. The IRS treats it as a “disregarded entity,” meaning the owner reports business income on their personal return using their own SSN.⁵

Most single-member owners still end up getting one. Banks usually require it for a business account, some states want a federal EIN for state tax registration, and you’ll need one the moment you hire your first employee. Multi-member LLCs always need an EIN because the IRS classifies them as partnerships by default.⁶

If you’re not sure yet whether you’ll need one, that’s another argument for waiting. A confirmed LLC with a settled structure is much easier to apply for than a hypothetical one.

The Practical Sequence Most Owners Should Follow

For a straightforward single-LLC formation, the order that avoids every problem above looks like this:

Run your name search through the state and, if available, reserve the name.
File your formation documents and wait for state approval.
Apply for the EIN once approval is in hand, using the name exactly as the state accepted it.
Take the EIN and your formation documents to the bank to open the business account.

The online EIN application is free and issues the number immediately during IRS operating hours, so waiting for state approval usually adds nothing to your total timeline.¹

If You Already Applied Early and Something Changed

If the state approved your LLC under a different name than what you put on the EIN application, send a name change request to the IRS address where you would file your returns. For a very recently assigned EIN with no returns filed yet, the IRS may either update the name on the existing EIN or determine that you need a new one.³

If you’ve decided not to form the LLC at all, don’t just ignore the number. Write to the IRS asking to close the business account. Include the EIN, the entity’s legal name, address, the original CP 575 confirmation notice if you have it, and your reason for closing. Send the letter to Internal Revenue Service, MS 6055, Kansas City, MO 64108, or Internal Revenue Service, MS 6273, Ogden, UT 84201.⁴ The EIN stays on file forever, but closing the account stops future filing obligations from piling up against it.

And if the responsible party listed on the application changes later, whether or not you applied early, file Form 8822-B with the IRS within 60 days of the change.²

1
Internal Revenue Service. Get an Employer Identification Number
2
Internal Revenue Service. Responsible Parties and Nominees
3
Internal Revenue Service. Business Name Change
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Internal Revenue Service. If You No Longer Need Your EIN
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Internal Revenue Service. Single Member Limited Liability Companies
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Internal Revenue Service. LLC Filing as a Corporation or Partnership