You may wonder, “Do I need an EIN for my LLC?” A single-member LLC can either use the Social Security Number (SSN) of the single member to conduct business, or it can obtain a separate Employer Identification Number (EIN). An EIN is required for a multi-member LLC, or if you anticipate having employees. The EIN will be the identifying number for your business, much like the Social Security Number is for an individual.
What Is an EIN?
An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is the primary identification number for a business entity. An EIN is not the same number as the Filing Number that the Delaware Secretary of State issues to each new entity. An EIN must be applied for separately from the Delaware filings and directly with the IRS.
Do I Need an EIN?
A company is required to obtain an EIN from the IRS when they hire employees and when they need to file certain tax returns. An EIN is required to open a business bank account at many banks.
Even in instances when an EIN is not required by the IRS, an owner of a business may want to obtain one so they do not need to use their SSN for the business.
What Is an EIN For?
The EIN is typically used on tax filings, bank account applications and other purposes when a third party needs to identify an entity doing business locally or across state lines.
Does an LLC Need an EIN?
The IRS says that an LLC must have an EIN if it employs people or if it is required to file certain excise tax forms. Even single-member LLCs classified as disregarded entities will need to obtain an EIN if they fall into this category. If a single-member LLC does not have employees and does not have excise tax liability, it does not need to obtain an EIN. However, even those LLCs should obtain an EIN instead of using the member’s SSN to maintain the separateness between the LLC and its owner.
When Should I Get an EIN?
We recommend that you obtain an EIN number soon after the formation of your LLC whether you are forming a single-member or multi-member LLC. IncNow can assist with obtaining the EIN for United States residents and non-residents alike.
You may order our EIN service at the time you place your initial LLC formation order or you may come back at a later time. To order this service, visit our EIN order page.
Does an EIN Expire?
An EIN, like a social security number, does not expire. Once the IRS issues an EIN to your company, it will always be associated with your corporation or LLC.