Do you need an EIN for an LLC?, A single-member LLC is only needed to acquire an EIN if it has one or more workers or excise tax liabilities; nonetheless, obtaining an EIN for your LLC may still be helpful.

The Internal Revenue Service uses the Employer Identification Number (EIN) to identify a company organisation. This number is also known as a federal tax identification number. While most businesses will require an EIN, there are certain exceptions, such as if your limited liability corporation (LLC) is a single-member LLC.

What is an LLC?

A Limited Liability Company (LLC) is a legal entity established under state law. The IRS will classify an LLC as a company, partnership, or as part of the owner’s tax return, depending on the LLC’s option and the number of members (a “disregarded entity”). For federal income tax purposes, a domestic LLC with at least two members is considered as a partnership unless it files Form 8832 and elects to be taxed as a corporation. Unless it files Form 8832 and deliberately elects to be classified as a corporation, an LLC with only one member is considered as an entity ignored as separate from its owner for income tax purposes. However, for the purposes of employment tax and some excise taxes, an LLC with a single member is considered a single entity.

Taxpayer Identification Number

A single-member LLC categorised as a disregarded entity for federal income tax purposes must normally utilise the owner’s social security number (SSN) or employer identification number (EIN) for all income tax information returns and reporting. If a disregarded entity LLC owned by an individual is needed to produce a Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, the W-9 should use the owner’s SSN or EIN rather than the LLC’s EIN.

The EIN of the LLC must be utilised for certain Employment Tax and Excise Tax requirements explained below. If an LLC has workers or is required to submit any of the excise tax forms listed below, it will require an EIN. The majority of new single-member LLCs classed as disregarded companies will require an EIN. Form SS-4, Application for Employer Identification Number, is used by an LLC to get an EIN. For further information on applying for an EIN, see Form SS-4.

An EIN is not required for a single-member LLC that is a disregarded entity with no workers and no excise tax liabilities. For federal tax reasons, it should utilise the name and TIN of the sole member owner. However, if a single-member LLC needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, the LLC can apply for and get one.

Can You Have an LLC Without an EIN?

An EIN is required for all multi-member LLCs, regardless of whether they are taxed as a partnership or have decided to be taxed as a corporation. The position for single-member LLCs, on the other hand, is a little different. The IRS regards a single-member LLC as a disregarded entity unless it has opted to be taxed as a corporation. For federal income tax purposes, the LLC’s income is considered as the owner’s income.

A single-member LLC that is viewed as a disregarded entity is exempt from obtaining an EIN unless it meets the following:

• One or more employees
• Excise tax liabilities

Furthermore, if you make any modifications that cause your LLC to no longer be categorised as a disregarded company, you will need to seek for an EIN. For example, if you add a member to your LLC and it no longer qualifies as a single-member LLC, you must obtain an EIN.

What Is the Tax ID Number for My LLC?

An LLC that is considered as a disregarded entity will normally not utilise its own EIN for any income tax reporting or filings. Instead, the LLC must utilise either the owner’s Social Security number (SSN) or the owner’s Employer Identification Number (EIN). Even if you have gotten an EIN for your LLC, this is still the situation. However, the LLC will be compelled to utilise its own EIN for some excise tax or employment tax filings. For those filings, you would need to supply the EIN of the LLC, not the SSN or EIN of the LLC’s owner.

Should I Obtain an EIN for My Limited Liability Company?

Even if you are not needed to acquire an EIN for your LLC, having one may help your business. Most banks, for example, demand LLCs to produce an EIN in order to open a bank account. You can apply for an EIN even if the IRS does not require you to have one.

How Do I Obtain an EIN for My Limited Liability Company?

Applying for an EIN is a simple procedure with no expenses. You have three choices:

Online application

You may apply for an EIN online straight through the IRS website. This is the quickest option to get an EIN since it will be granted to you immediately once your information is confirmed at the end of your online session.

Fax application

 You can apply for an EIN by faxing Form SS-4 (PDF) to the proper fax number. The IRS states that after it has been determined that your LLC requires an EIN, your new EIN will be sent to you within four business days.

Mail-in application

A completed Form SS-4 can also be mailed in. Once it is determined that your LLC requires an EIN, your new EIN will be delivered to you.

A single-member LLC must get an EIN only if it has one or more workers or is subject to excise tax responsibilities. However, having an EIN for your LLC may still be advantageous. Whether you are obliged to obtain an EIN or require one for a non-IRS-related cause, obtaining an EIN for your LLC is a simple procedure.