Do you need an ein for an llc8/24/2023 Likewise, if you were a sole proprietor with an EIN and are switching to an LLC for tax purposes only, you won't need to use it. If you're a business partnership or sole proprietorship has an EIN already, you can keep the existing EIN when you change your business structure to an LLC.Here are some instances when an EIN may, or may not be needed: An EIN isn't necessary for all businesses, but if you are starting to hire people, it might be a good idea as the EIN determines how your company is treated in any lawsuits. Information About Getting an EIN for Your LLCĪn EIN helps identify people on tax forms, much like a social security number, and can be used instead of a social security number in most situations. If you plan on setting up multiple businesses that are closely related, you can have individual names for each one, yet keep them under one LLC with one EIN. In addition, you can apply for secured loans, unsecured lines of credit, and any business licenses or local permits as necessary. Once you've got an EIN set up, you can (legally) hire employees and create a payroll system. If you're worried about this, an EIN is a good solution. Thieves are getting creative with their ability to steal your identity using your social security number. Not sure if your company needs one? If you're looking for more details about EIN's for Limited Liability Companies, read on to learn more about various situations where you do and don't need an EIN for an LLC. The IRS assigns EIN's to business entities that need to submit tax returns and helps them track the corporations business activity. Do I need an EIN for an LLC? The answer may be yes.Īn Employee Identification Number (EIN) is nine digits long, like a Social Security number.
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