Q&A of the Week July 26, 2023

Question

Do I need an EIN for my LLC?

Answer

An EIN (Employer Identification Number) is needed for an LLC (Limited Liability Company) if one or both of the following are true:

1. You have employees

2. You will be required to file an excise tax form*

*Items with an excise tax include imported chemicals, cole mined in the U.S., kerosene in aviation, expired tax fuel credits, heavy highway vehicle use, and more.

If you are a sole proprietor or single-member LLC, you can use your Social Security Number (SSN) instead of an EIN.

There are benefits to having an EIN, such as:

- More privacy than using your SSN

- Eligible for more tax deductions than an SSN

- More flexibility for hiring employees and structuring your business

Click here for an online EIN application: https://irs-federal-ein-number.com/?gad=1&gclid=Cj0KCQjwwvilBhCFARIsADvYi7L4PcbiZfMyB1xPmLVarU5-98DeAQ7mWRWMx0qrW9sGVqdp9-I_8ewaAh93EALw_wcB