Benefits of Having an EINĪn EIN might not be required for your LLC, but an EIN can make it easier to successfully run your business.Īpplying for an EIN instead of using your Social Security number (SSN) will keep your SSN more private, reducing the risk of identity theft. This is because the LLC must file a partnership return and provide K-1s to members of the LLC and those forms require an EIN number. If your business structure is a partnership or multi-member LLC, you will need to get an EIN number. Learn more about EINs for single-member LLCs.
It’s still recommended (and sometimes required) to open a bank account, to hire employees later, and in order to maintain your corporate veil. If your business entity is a single-member LLC with no employees or excise tax liability, then you are not required to get an employer ID number. We recommend that all LLCs get an EIN but the US Internal Revenue Service requires EINs for LLCs under the following circumstances:
Our LLC formation guides will help you choose an LLC name that will be accepted by your state. If you get an EIN first, and your LLC name is rejected, you will need to cancel the EIN, re-file your LLC formation documents, wait for LLC approval, and then apply for a new EIN. You will need to register your business and get approval for the business's name from your state before applying for an EIN. You can't be sure of your business name until it's approved by your state. This is because the IRS will ask for your business formation date and legal business name on the EIN application. You need to form your LLC before getting an EIN.
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