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DOES A SINGLE-MEMBER LLC NEED AN EIN?

An Employer Identification Number (EIN number) is a ton like a Social Security number for your business.

Just single-member LLCs that have employees are required to have an EIN but we will make sense of underneath why all LLCs benefit from having a free EIN.

Peruse our Does a Single-Member LLC Need an EIN guide beneath or visit our EIN Benefits or What is an EIN guide to find out more.

Significant: LLCs should be officially registered and endorsed prior to getting an EIN. Visit our Form a LLC guides and follow the simple steps for registering a LLC yourself.

On the off chance that your business is a single-member LLC with employees or excise tax liability, then you are required to get an EIN.

On the off chance that your business is a single-member LLC without any employees or excise tax liability, then you are not required to get an EIN.

We suggest getting an EIN regardless of whether you aren’t required to because having an EIN provides several benefits.

You can apply for an EIN with the IRS EIN Assistant free of charge but you should form an LLC prior to applying for an EIN.

EIN

Benefits

Not all single-member LLCs are required to get an EIN but it’s usually really smart to get one.

Getting an EIN provides these benefits:

An EIN can assist with safeguarding your corporate cloak.

On the off chance that you form your business without an EIN or employees, but wind up prepared to start recruiting, you will as of now have an EIN.

Getting an EIN instead of using your Social Security number (SSN) will keep your SSN more hidden and reduce the risk of identity robbery.

Most banks require an EIN to start a business banking account. A business bank account is one more method for keeping your personal finances and professional finances separate.

Just as a Social Security number tracks your personal credit, the loaning and credit agencies use the EIN to follow your business’ credit.

Although an EIN is not required to apply for all business loans, a great deal of lenders favor a company that has established its business credit through a business bank account and lines of acknowledge associated for the company’s EIN.

Peruse more about the benefits of getting an EIN.

What is a Single-Member LLC?

A single member LLC is a business with only one proprietor that is not taxed separately from their business. Like a sole proprietorship, a single member LLC is taxed as a disregarded element naturally.

Because the government ignores disregarded entities, they undergo “pass-through taxation.” This means all profits or losses from the business pass through the business straightforwardly to you, the business proprietor. You thusly are responsible for paying annual taxes on your earnings through your personal tax return.

Instructions to Get a Free EIN for Your Single-Member LLC

Significant: LLCs should be officially registered and supported prior to getting an EIN.

Use our free Form a LLC guide for help registering your business. The guide also includes free EIN instructions.

The quickest and simplest method for getting a free EIN is to apply for one through the EIN Assistant on the IRS website.

You can also apply for an EIN by fax or mail by finishing Form SS-4. Assuming you are submitting by fax, send the EIN application to fax number (855) 641-6935. In the case of applying via mail, submit to Internal Revenue Service, Attn: EIN Activity, Cincinnati, Gracious 45999.

Helpful information for requesting an EIN through the IRS website:

The IRS’s hours of activity for acquiring your EIN are Monday-Friday from 7 a.m. to 10 p.m

Just United States and U.S. Territories-based businesses are qualified

You must have a valid Taxpayer Identification Number (SSN, ITIN,EIN)

The substance proprietor or responsible party may just apply one time each day

Your application must be finished up in one session and can’t be saved

The session will break following 15 minutes while perhaps not being used

You will quickly get an EIN after the form is finished

Applications can’t be processed on the off chance that an EIN was previously acquired online