By Jake Lawson, LLC Formation Strategist
This question hits my inbox weekly: “Should I get my EIN before or after forming my LLC?” After helping over 1,200 entrepreneurs navigate business formation, I can tell you the answer is straightforward—but the reasoning behind it matters more than you might think.
The short answer? Get your EIN after your LLC is approved by the state. Always.
But here’s what most guides don’t tell you: the IRS doesn’t actually verify that your LLC exists before issuing an EIN. This creates opportunities for confusion, mismatched documents, and unnecessary complications that can haunt your business for years.
Let me walk you through the right sequence, what happens when you do it backwards, and how to fix the mess if you’ve already gotten ahead of yourself.
The Right Sequence: LLC First, EIN Second
Step 1: Form your LLC with the state
Step 2: Wait for state approval
Step 3: Apply for your EIN using your approved LLC name
Step 4: Receive your EIN confirmation letter
Why this order matters:
- You know your exact LLC name (as approved by the state)
- You have your LLC formation date for the EIN application
- Your EIN confirmation letter matches your state filing documents
- You avoid potential name mismatches and complications
Jake’s reality: I’ve seen too many entrepreneurs create paperwork nightmares by rushing to get their EIN first. The few days you save aren’t worth the potential complications.
What Happens When You Get Your EIN First
The IRS doesn’t check state records before issuing EINs. They’ll happily issue an EIN for “Super Cycles LLC” even if that LLC doesn’t exist yet. This creates two possible scenarios:
Scenario 1: Everything Works Out (The Lucky Path)
The situation: You get an EIN for “Rob’s Grub Shack LLC,” then file your LLC with the same exact name, and it gets approved.
The result: No problems. Your EIN and LLC documents match perfectly.
Action needed: None. You got lucky and can proceed normally.
Scenario 2: Your LLC Filing Gets Rejected (The Headache Path)
The situation: You get an EIN for “Super Cycles LLC,” then file your LLC with the same name, but the state rejects your filing because “Super Cycles Inc.” already exists.
The result: You now have an EIN attached to a business name you can’t use.
Action needed:
- Cancel your original EIN with the IRS
- Choose a new LLC name that will be approved
- File your LLC with the new name
- Wait for approval
- Apply for a new EIN with the correct name
Jake’s assessment: This scenario creates unnecessary work, delays, and potential confusion. It’s easily avoided by waiting for LLC approval first.
Why the IRS Doesn’t Verify LLC Existence
The IRS’s perspective: They’re focused on tax collection, not business entity verification. As long as you provide the required information, they’ll issue an EIN.
What this means for you: The IRS assumes you’re providing accurate information about a legitimate business entity. They don’t cross-check with state records.
The responsibility: It’s entirely on you to ensure your EIN application matches your actual business entity.
Common EIN-Before-LLC Mistakes I See
Mistake 1: Name Variations
- EIN application: “Tech Solutions”
- LLC filing: “Tech Solutions LLC”
- Problem: Mismatched documents
Mistake 2: Premature Applications
- Getting EIN before researching name availability
- Assuming your desired name will be approved
- Problem: Potential rejection and EIN cancellation
Mistake 3: Multiple Entity Confusion
- Getting EIN for one business structure
- Then switching to a different structure
- Problem: Wrong entity type on EIN records
Mistake 4: Formation Date Issues
- EIN application shows start date before LLC exists
- Creates confusion for tax filings and banking
- Problem: Inconsistent business timeline documentation
How to Fix EIN-Before-LLC Complications
If you’ve already gotten your EIN before forming your LLC, here’s my recovery strategy:
If Your LLC Gets Approved With the Same Name
Good news: No action needed. Your EIN will work perfectly with your approved LLC.
Verification steps:
- Compare your EIN confirmation letter to your LLC approval documents
- Ensure names match exactly
- Proceed with normal business setup
If Your LLC Gets Rejected or You Need a Different Name
Step 1: Cancel Your Original EIN
- Contact the IRS to cancel the unused EIN
- Follow IRS procedures for EIN cancellation
- You don’t need to wait for confirmation before getting a new EIN
Step 2: Fix Your LLC Filing
- Research and choose an available name
- File your LLC with the correct name
- Wait for state approval
Step 3: Get Your New EIN
- Apply for EIN using your approved LLC name
- Use the actual LLC formation date
- Keep documentation of both the cancelled and new EIN
The Strategic Importance of Proper Sequencing
Banking and Financial Services
- Banks want to see matching LLC and EIN documents
- Mismatched names can delay account opening
- Some banks require explanation letters for discrepancies
Business Credit and Loans
- Lenders verify business legitimacy through consistent documentation
- Mismatched EIN and LLC documents raise red flags
- Clean, consistent paperwork speeds approval processes
Tax Filing and Compliance
- IRS links your EIN to specific business entity types
- Inconsistent dates can complicate first-year tax filings
- Professional accountants prefer clean, sequential documentation
Professional Relationships
- Vendors and partners often verify business legitimacy
- Consistent documentation builds credibility
- Clean paperwork reflects professional business management
My Recommended LLC Formation Timeline
Week 1: Business Planning
- Choose your business name
- Research name availability thoroughly
- Decide on LLC structure and management
Week 2: State Filing
- File LLC formation documents with the state
- Pay required state fees
- Track your application status
Week 3: Wait for Approval
- Monitor state processing
- Prepare for next steps
- Don’t rush into other applications
Week 4: Post-Approval Actions
- Apply for EIN with approved LLC name
- Open business bank account
- Begin operations with proper documentation
Special Circumstances and Exceptions
Delayed Effective Dates
Scenario: You’re filing your LLC with a future effective date
EIN timing: Wait until the effective date to apply for your EIN, or use the future effective date in your EIN application
Multi-State Operations
Scenario: You’re forming LLCs in multiple states
Strategy: Form your primary LLC first, get that EIN, then handle additional state registrations
Seasonal Businesses
Scenario: You’re starting a seasonal business
Timing: Align your LLC formation and EIN application with your actual business start date
Professional vs. DIY Considerations
When DIY Makes Sense
- Simple, single-member LLC
- Straightforward business name
- You have time to handle sequencing properly
- You understand the process
When to Hire Professionals
- Complex business structures
- Tight deadlines (but don’t compromise proper sequencing)
- Multiple entity formations
- You want to avoid any potential mistakes
Professional services I recommend:
- Northwest Registered Agent for comprehensive LLC formation including EIN services
- Local attorneys for complex situations
- Tax professionals for specialized entity structures
Red Flags That Indicate Problems
Warning Signs You’ve Done Things Backwards
- Your EIN confirmation letter has a date before your LLC formation
- Names don’t match exactly between EIN and LLC documents
- Banks or vendors question your documentation
- Your accountant asks for clarification on business start dates
When to Consider Professional Help
- You’ve made sequencing mistakes
- Documentation doesn’t align properly
- You’re facing complications with banking or other business services
- You need clean paperwork for loans or credit applications
The Bottom Line on EIN Timing
The few days you might save by getting your EIN before LLC approval aren’t worth the potential complications. Proper sequencing—LLC formation first, then EIN application—creates clean documentation that serves your business well for years to come.
Key principles for success:
- Always wait for LLC approval before applying for EIN
- Use exact names and dates from your approved LLC documents
- Keep all documentation organized and consistent
- Fix any sequencing mistakes immediately before they compound
- When in doubt, consult professionals rather than guessing
Remember: Your EIN and LLC documents are the foundation of your business’s legal and financial identity. Taking time to get this sequence right prevents headaches and establishes credibility with banks, vendors, and business partners.
The extra few days of waiting for proper sequencing pays dividends in clean documentation and professional credibility throughout your business’s lifetime.
Jake Lawson is an LLC Formation Strategist and Tax Advisor who has successfully helped over 1,200 entrepreneurs create proper business documentation sequences. He specializes in preventing common formation mistakes that create long-term complications and provides unbiased reviews of formation services at llciyo.com.