Responsible Party
Definition
The Responsible Party is an IRS term used primarily during the EIN application process (Form SS-4). It refers to the individual person who owns or ultimately controls the business. The IRS requires the responsible party to be a real, living person—you cannot list another company or entity as the responsible party.
Why it matters
When applying for an EIN, the IRS uses the Responsible Party to link the new business to a specific taxpayer. If you are applying online, the Responsible Party must have a valid US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). If you do not have an SSN, see our guide on how to get an EIN without an SSN. If you hire a service to form your LLC, you (the owner) must still be listed as the Responsible Party, not the lawyer or service employee who filled out the form.
Note that the Responsible Party on your EIN application does not automatically determine your tax status. See how to check S corp status to ensure your entity is classified correctly. For a full step-by-step on launching your business, see our LLC formation hub.
Example
John and Sarah start a multi-member LLC. They go to the IRS website to get an EIN. Even though they co-own the business 50/50, the IRS form only asks for one Responsible Party. They decide to list John. John provides his name and SSN on the application. The IRS issues the EIN to the LLC, with John officially listed as the Responsible Party.