Can a New LLC Get Funding With Just an EIN?
An Employer Identification Number identifies your business for federal tax purposes. For a newly formed LLC, providers commonly need additional information to evaluate a funding request. Some startup options use the owner’s personal credit history. Others look for business credit, cash flow, or collateral, depending on the product. IRS EIN guide · SBA business planning and credit guidance
Check Startup Funding Fit
What having an EIN helps you do
Your EIN gives you a consistent identifier to use where requested on business paperwork, bank records, and applications. If you formed your LLC with the state and then received an EIN, check that the company name in your application matches the records you provide. If a form asks for an EIN and personal information, read the authorization to see what information the provider will use.
Ask what the provider means by EIN-only
Before sharing your information, get answers to three separate questions.
- Will you review my personal credit? Ask when a credit inquiry may happen and what you are authorizing.
- Will I sign a personal guarantee? Ask who is responsible for repayment and what happens if the LLC misses payments.
- What business records do you require? Ask whether the provider accepts a new LLC with zero revenue and whether it reviews bank activity, business credit, or assets.
An application may ask for your EIN and still require you to authorize a personal credit review. Read the application and financing agreement for the answers relevant to your offer.
What if your LLC has no business credit yet?
A credit-based startup program may consider a new LLC before it generates revenue. For the program described by Viera, a 680+ personal FICO is a starting guideline and other credit criteria apply. Owners looking specifically for financing that avoids a personal credit review should confirm the program’s credit policy before submitting an application. Read Viera’s guide to credit-based startup funding.
Get your legal business details and planned expenses together before you start. If you have co-owners, ask whose information the provider needs and who would sign. Use the new LLC funding checklist.
Check your startup funding fit
Answer a few questions about your business before continuing to the application.
Check Startup Funding FitEducational information only, not individualized financial, legal or tax advice. All examples are hypothetical. Viera is not the direct lender. Financing is subject to lender review and written terms.