Jake Lawson here. In my 15+ years helping entrepreneurs navigate U.S. business formation, I’ve seen one mistake kill more New York LLCs than any other: skipping the EIN. Let’s fix that.
You’ve formed your New York LLC—smart move. But if you think you’re done with paperwork, think again. Your next critical step is getting an Employer Identification Number (EIN) from the IRS.
Don’t let the name fool you. Whether you have employees or not, your LLC needs this number. It’s not optional—it’s oxygen for your business.
What Is an EIN (And Why Every LLC Owner Gets This Wrong)
An EIN is your LLC’s Social Security Number in the eyes of the federal government. The IRS uses it to track your business for tax purposes, and practically everyone else uses it to verify you’re a legitimate entity.
Think of it as your “business ID card” that proves you’re not just another fly-by-night operation.
Common EIN aliases you’ll encounter:
- Federal Tax ID Number
- Employer Identification Number
- Federal Employer Identification Number (FEIN)
- Tax Identification Number
They all mean the same thing. Don’t get confused by the jargon.
Important distinction: Your EIN comes from the IRS, not New York State. This is a federal number, completely separate from any state-issued tax IDs you might need later.
Why Your New York LLC Absolutely Needs an EIN
I’ve heard the argument: “Single-member LLCs don’t need EINs.” Technically true, practically stupid.
Here’s what you can’t do without an EIN:
- Open a business bank account (good luck explaining personal transactions to the IRS)
- Apply for business credit cards (mixing personal and business credit is a nightmare)
- Get business loans or lines of credit
- File certain tax returns (depending on your tax election)
- Obtain required business licenses (many applications require an EIN)
- Handle payroll (if you ever hire employees)
Plus, using your Social Security Number for business purposes is like painting a target on your back for identity thieves.
Getting an EIN takes 15 minutes and costs nothing. There’s literally no reason not to get one.
The Free vs. Paid EIN Trap
Here’s where I save you money: Getting an EIN is completely free when you do it yourself.
The IRS doesn’t charge application fees. If someone’s asking for payment, you’re either dealing with a middleman or a scam.
Yes, services like Northwest can handle this for you, but it’s unnecessary unless you’re swamped or don’t have a U.S. Social Security Number.
When to Apply for Your EIN (Timing Matters)
Critical rule: Don’t apply for an EIN until your New York LLC is officially approved by the Department of State.
I see entrepreneurs mess this up constantly. They get excited, apply for the EIN immediately after filing their Articles of Organization, then discover their LLC name was rejected. Now they need to cancel the EIN and start over.
Wait for your approval confirmation. Then apply. Trust me on this one.
How to Get Your EIN: Two Paths
Path 1: Online Application (For U.S. Citizens/Residents)
If you have a Social Security Number or Individual Taxpayer Identification Number (ITIN), apply online. It’s the fastest method—you’ll get your EIN immediately upon completion.
The application takes about 15 minutes and asks straightforward questions about your LLC. At the end, you’ll receive your EIN Confirmation Letter (Form CP 575) that you can download and print.
Pro tip: Apply early in the day. The IRS online system sometimes gets overwhelmed during peak hours.
Path 2: Mail/Fax Application (For Non-U.S. Residents)
If you don’t have an SSN or ITIN, you’ll need to mail or fax Form SS-4 to the IRS. This is the same application, just on paper.
Processing time: 4-6 weeks by mail, 4-5 business days by fax.
Myth buster: You don’t need a “third-party designee” to get an EIN without an SSN. That’s a service some companies sell, but it’s unnecessary. You can do this yourself.
Your EIN Confirmation Letter: Guard It With Your Life
Once approved, you’ll receive Form CP 575 (EIN Confirmation Letter). This document is gold—banks, lenders, and state agencies will all ask for it.
If you applied online: Download and save multiple copies immediately. The IRS doesn’t provide additional copies.
If you applied by mail/fax: They’ll mail your confirmation letter to the address you provided.
Lost your confirmation letter? You can request Form 147C (EIN Verification Letter) as a replacement. Both forms serve the same purpose.
Opening Your LLC Business Bank Account
Your EIN is the key to separating your personal and business finances—something the IRS cares about deeply.
Most banks require:
- Your EIN Confirmation Letter
- Articles of Organization from New York State
- Valid photo ID
- Initial deposit
Address matching issues: Some banks want all your addresses to “match up” across documents. If your LLC uses a registered agent address but you want tax documents sent to your home, call the bank first to discuss their policies.
Non-U.S. residents: Yes, you can still open a U.S. bank account with your New York LLC and EIN. Some banks are more international-friendly than others.
Common EIN Mistakes (And How to Fix Them)
Mistake 1: Applied Before LLC Approval
If your LLC gets approved with the exact name you used on your EIN application, you’re fine. If the name changes or gets rejected, you’ll need a new EIN.
Mistake 2: Forgot to Include “LLC” in the Name
The IRS wants your complete legal name, including “LLC.” If you missed this, apply for a new EIN and cancel the incorrect one.
Mistake 3: Thinking the EIN Forms Your LLC
An EIN doesn’t create an LLC. It’s just a tax number. If you got an EIN but never filed Articles of Organization with New York State, you’re operating as a sole proprietorship, not an LLC.
Multi-Member vs. Single-Member LLCs
Multi-Member LLCs: Must get an EIN. No exceptions.
Single-Member LLCs: Technically optional for tax purposes, practically essential for everything else.
Married couples in New York: You’ll be treated as a multi-member LLC for tax purposes (New York isn’t a community property state), so you need an EIN.
DBAs and EINs: A Quick Clarification
DBAs (Doing Business As names) don’t get their own EINs. A DBA is just a nickname for your business.
If your LLC has a DBA, use your LLC’s EIN for everything. The IRS doesn’t recognize DBAs as separate entities.
Need Help? Where to Get Real Answers
IRS Business Line: 1-800-829-4933 (7 AM – 7 PM, Monday-Friday)
When you call, press 1 for English, then 1 for Employer Identification Numbers, then 3 for existing EIN questions. That’s the only way to reach a human.
Call early: Right when they open to avoid hold times.
What they will help with: EIN application process, technical questions What they won’t help with: Legal advice, tax strategy
The Bottom Line on New York LLC EINs
Getting an EIN for your New York LLC isn’t complicated, but it’s non-negotiable if you want to operate like a real business.
My process:
- Wait for your LLC approval confirmation
- Apply online if you have an SSN/ITIN
- Download and save your confirmation letter
- Use it to open your business bank account immediately
Time investment: 15 minutes Cost: Free Value: Immeasurable
Don’t overthink this. Get your EIN, get your business bank account, and start building something great.
Ready to form your New York LLC first? Check out our comprehensive state-by-state formation guide. We’ve tested every major formation service so you can choose the right one for your situation—no upsells, no BS, just honest recommendations based on real experience.
Questions about New York LLCs or EIN applications? I’ve guided over 1,200 entrepreneurs through this exact process. Drop me a line—I’m here to help you avoid the expensive mistakes I see every day.