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 For My LLC?
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.
Can an LLC Use a Social Security Number?
A single-member LLC, in most instances, is permitted to use the member’s SSN for the business. However, this is not recommended. An LLC should obtain an EIN regardless of membership or tax status so as to ensure there is not liability of the business that is imputed to the owner via “alter-ego” liability theory.
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.
Does a Corporation Need an EIN?
Any corporation with more than one shareholder is required to have an EIN. A corporation that has one owner may use that person’s SSN, however it is recommended that the corporation obtain an EIN to maintain the separateness between the corporation and its owner.
Does a Single Member LLC Need an EIN?
The rule above also applies to members of LLCs. A single member LLC may use the member’s SSN, however they should obtain an EIN for the business.
How do I get an EIN?
You can get it through the IRS directly or IncNow® can help. Just select the EIN add-on when you place your order for a new entity formation with IncNow, or order the service on our website separately.
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.
Can I Reuse an EIN?
Separate companies cannot use the same EIN number. EIN numbers are unique to the entities to which they are assigned. For example, two LLCs owned by the same holding company cannot use the same EIN number.