By Jake Lawson, LLC Formation Strategist
Look, I’ll cut straight to the chase: if you’ve formed a Vermont LLC (or you’re about to), you need a Federal Tax ID number. Period. Don’t let anyone tell you otherwise—I’ve guided over 1,000 entrepreneurs through this process, and skipping the EIN is like buying a car without getting license plates.
Here’s everything you need to know about securing your Vermont LLC’s Federal Tax ID, straight from someone who’s seen every possible mistake (and fixed most of them).
What Exactly Is a Federal Tax ID Number?
Your Federal Tax ID—officially called an Employer Identification Number or EIN—is your LLC’s Social Security number in the eyes of Uncle Sam. The IRS issues this nine-digit identifier exclusively to your business entity, and it becomes your company’s permanent fingerprint in the federal system.
Think of it this way: without an EIN, your Vermont LLC exists in a bureaucratic limbo. You’ve got the state paperwork, sure, but you can’t open business bank accounts, file taxes properly, or handle most legitimate business transactions. It’s like having a driver’s license but no car registration.
Key point: The Vermont Secretary of State doesn’t issue EINs. Only the IRS handles Federal Tax IDs. Keep that distinction clear—I’ve seen too many confused entrepreneurs calling the wrong office.
The Many Names of Your Tax ID
The government loves confusing terminology, so your EIN might appear under several aliases:
- Federal Employer Identification Number (FEIN)
- Federal Tax Identification Number
- Vermont Federal Tax ID
- Tax ID Number
- Business Tax ID
They’re all the same thing. Don’t let the varying names throw you off.
Important distinction: Your Federal EIN is completely separate from any Vermont state tax numbers you might need from the Vermont Department of Taxes. Two different agencies, two different purposes.
Why Your Vermont LLC Absolutely Needs an EIN
Here’s where I get blunt with clients: “Do I really need an EIN?” is the wrong question. The right question is: “How quickly can I get one?”
Your Vermont LLC EIN unlocks:
Banking and Credit
- Business bank account opening (required by virtually every bank)
- Business credit cards and lines of credit
- Commercial loans and financing options
Tax and Compliance
- Federal tax return filing
- Vermont state income tax filings
- Sales tax registration (if applicable)
- Quarterly estimated tax payments
Business Operations
- Business license applications
- Professional permit requests
- Vendor account setups
- Payroll processing (even if you’re the only “employee”)
Risk Protection
- Identity theft protection (seriously underrated benefit)
- Separation between personal and business finances
- Professional credibility with clients and suppliers
I’ve watched single-member LLC owners try to operate using their SSN instead of an EIN. It creates a paperwork nightmare and exposes you to unnecessary identity risks. Get the EIN—it’s free and takes 15 minutes.
The Real Cost: Absolutely Nothing
Here’s some good news in a world of hidden fees: the IRS doesn’t charge a penny for EIN applications. Zero. Nada. Zilch.
If someone’s trying to charge you for “EIN services,” they’re either helping with paperwork (which you can easily do yourself) or they’re running a scam. I’ve reviewed dozens of formation services, and while some legitimately include EIN assistance in their packages, the IRS application itself is always free.
Red flag warning: Avoid third-party websites that look official but charge fees for “expedited EIN processing.” The IRS online system is already instant for most applicants.
Strategic Timing: When to Apply
Here’s a mistake I see weekly: entrepreneurs applying for their EIN before their Vermont LLC is officially approved. Don’t do this.
The correct sequence:
- File your Vermont Articles of Organization
- Wait for state approval confirmation
- Then (and only then) apply for your Federal EIN
Why the wait? Because the IRS requires your business entity to legally exist before issuing a tax ID. Apply too early, and you’ll create a bureaucratic mess that requires canceling and reapplying—trust me, I’ve helped clients untangle this nightmare.
Pro tip: Use the waiting period to finalize your LLC membership structure. Changing from single-member to multi-member status (or vice versa) after getting your EIN triggers additional IRS paperwork and potential tax implications.
The Application Process: Two Paths Forward
Your application method depends entirely on your citizenship and residency status. Here’s the breakdown:
Path 1: US Citizens and Residents (The Easy Route)
If you’ve got a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), you’re in luck. The IRS online application system is your friend.
Why I recommend online filing:
- Instant approval (you get your EIN immediately)
- 15-minute application process
- Download your confirmation letter instantly
- No postal delays or processing backlogs
The online system walks you through every question, and most Vermont LLC owners complete it without issues. I’ve guided hundreds of clients through this process—it’s genuinely straightforward.
Apply for an EIN (U.S. Citizens and Residents)
If you have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN), the easiest and fastest way to get an EIN is by applying online.
- Fast approval: The online application takes about 15 minutes, and your EIN will be issued immediately at the end of the process.
- Step-by-step guide: See our detailed instructions here → How to Apply for an EIN Online
Note: While you can apply by mail or fax, these methods are much slower. We only recommend them if you receive an error message (called an EIN reference number) and the IRS requires you to use a paper application.
Alternative option: You can mail or fax Form SS-4, but why wait weeks when you can get instant approval online?
Path 2: Non-US Residents (Slightly More Complex)
International entrepreneurs face a different process. Without an SSN or ITIN, you can’t use the online system. Instead, you’ll need to file Form SS-4 via mail or fax.
The process:
- Complete Form SS-4 (available on IRS.gov)
- Mail or fax to the IRS
- Wait for your EIN confirmation letter (typically 2-8 weeks)
Apply for an EIN (Non-U.S. Residents)
If you’re not a U.S. resident and don’t have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), you can still get an EIN for your Vermont LLC. However, you cannot apply online.
Instead, you’ll need to:
- Complete Form SS-4 (the EIN application form).
- Submit it to the IRS by mail or fax.
We have step-by-step instructions here → How to Get an EIN Without an SSN or ITIN
Note: Some websites may say you must hire a third-party designee to do this for you. That is not true. You can apply for your EIN yourself without using a third party.
Common myth busted: You don’t need a “third-party designee” as some websites claim. International applicants can obtain EINs directly from the IRS. Don’t pay unnecessary fees for this service.
Understanding Your EIN Confirmation
Once approved, you’ll receive an EIN Confirmation Letter (formally called CP 575). This document is crucial—treat it like your LLC’s birth certificate.
If you applied online: Download and save multiple copies immediately. The IRS doesn’t offer replacement confirmation letters.
If you mailed/faxed: Your confirmation arrives via postal mail. Guard this document carefully.
Lost your confirmation? Request an EIN Verification Letter (Form 147C) from the IRS. Banks and other institutions accept this as equivalent proof.
Opening Your Vermont LLC Bank Account
Your EIN confirmation letter is your golden ticket to business banking. Every reputable bank requires this documentation to open LLC accounts.
Documents to bring:
- EIN Confirmation Letter
- Vermont Articles of Organization
- Operating Agreement (if multi-member)
- Personal identification
Banking tip: Shop around for business accounts. Vermont has excellent local credit unions and community banks that often offer better terms than national chains. I’ve helped clients save hundreds annually just by choosing the right banking partner.
Critical EIN Mistakes to Avoid
In 15 years of LLC consulting, I’ve seen these errors repeatedly:
Mistake #1: Applying Before LLC Approval
The problem: Creates IRS confusion and requires cancellation/reapplication
The fix: Wait for your Vermont Secretary of State approval confirmation
Mistake #2: Thinking EIN Formation Creates Your LLC
The problem: You’re actually operating as a sole proprietorship
The fix: File Articles of Organization with Vermont first, then get your EIN
Mistake #3: Using the Wrong Business Name
The problem: EIN and LLC names don’t match, causing banking issues
The fix: Ensure exact name consistency across all documents
Mistake #4: Changing Membership Structure Post-EIN
The problem: Triggers complex IRS paperwork and tax implications
The fix: Finalize your ownership structure before applying
FAQ: The Questions I Get Every Week
“Does my single-member Vermont LLC really need an EIN?”
Technically? No. Practically? Absolutely yes.
While single-member LLCs can theoretically operate using the owner’s SSN, it’s risky and limiting. You’ll struggle with banking, vendor relationships, and professional credibility. Plus, it exposes your personal SSN in business contexts.
My recommendation after helping 1,000+ entrepreneurs: get the EIN. It’s free, fast, and essential for serious business operations.
“Do multi-member LLCs need EINs?”
Yes, without exception. The Internal Revenue Code requires all multi-member LLCs to obtain Federal Tax IDs. No wiggle room here.
“What about DBAs and EINs?”
Here’s where it gets tricky. A DBA (Doing Business As) name can’t have its own EIN—it’s just a nickname for your existing business entity.
If your LLC has a DBA: Use your LLC’s EIN for everything. The IRS doesn’t recognize DBA names separately.
If you have a DBA but no LLC: You’re operating as a sole proprietorship or partnership, which may or may not need an EIN depending on your specific situation.
“My LLC has no employees. Still need an EIN?”
Yes. The term “Employer Identification Number” is misleading—you don’t need actual employees to require a Federal Tax ID. Even if you’re the sole owner-operator, your LLC benefits from having its own tax identifier.
Remember: as an LLC owner, you’re not technically an employee of your own company.
“How do married couples handle Vermont LLC EINs?”
Vermont isn’t a community property state, so husband-and-wife LLCs must be treated as multi-member partnerships for tax purposes. This means:
- You need an EIN (required for partnerships)
- You’ll file partnership tax returns
- You can’t elect “Qualified Joint Venture” status
Your EIN application determines your tax treatment, so complete it carefully.
Getting Help When Things Go Wrong
Sometimes EIN applications hit snags. Here’s how to get real help:
IRS EIN Hotline: 1-800-829-4933 Hours: 7 AM – 7 PM, Monday through Friday
Pro tip for reaching a human:
- Press 1 (English)
- Press 1 (Employer Identification Numbers)
- Press 3 (“If you already have an EIN…”)
Option 3 is the secret sauce—it’s the only path to a live representative.
Best calling strategy: Call right when they open (7 AM) to avoid hold times. I’ve waited 2+ hours during peak periods.
The Bottom Line: Just Get Your EIN
Look, I’ve spent 15 years helping entrepreneurs navigate LLC formation, and here’s my blunt assessment: overthinking your EIN is wasted energy. The application is free, fast, and absolutely necessary for legitimate business operations.
Don’t fall for “lifetime registered agent” gimmicks or pay for “expedited EIN services.” The IRS online system is already instant for most applicants, and the whole process takes less time than reading this article.
Your Vermont LLC deserves proper federal registration. Get your EIN, open your business bank account, and start building the company you envisioned.
Ready to form your Vermont LLC? Check out our comprehensive Vermont LLC formation guide for step-by-step instructions, or compare the best LLC formation services I’ve personally tested and reviewed.
Have EIN questions I didn’t cover? Drop me a line—I’ve probably seen your exact situation before and can point you in the right direction.
Jake Lawson is an LLC Formation Strategist and founder of llciyo.com. He’s guided over 1,000 entrepreneurs through U.S. business formation and has reviewed 20+ formation services to help founders make smart, cost-effective decisions.