Most Texas entities need an Employer Identification Number (EIN) from the IRS—even single-member LLCs that will open a business bank account or hire employees.
When you need an EIN in Texas
| Scenario | EIN usually required? |
|---|---|
| Multi-member LLC | Yes |
| Corporation | Yes |
| Hiring employees | Yes |
| Business bank account | Often required by bank |
| Single-member LLC, no employees | Sometimes optional for tax, still useful |
How to apply (free via IRS)
- Form your Texas entity with the Secretary of State first (or in parallel if timing is tight).
- Apply online at IRS EIN Assistant (fastest when eligible).
- Save the confirmation letter (CP 575) for banking and vendor onboarding.
Common timing mistakes
- Applying before your legal name is finalized with SOS
- Using a personal SSN unnecessarily when an EIN is available
- Opening merchant accounts before EIN + formation documents align