EIN For LLC
What are your opinions on getting an EIN for a sinlge member LLC. Will not have any employees. Is there any benefit in obtaining a EIN if you don't really need one. I have read that it is a good idea to have one for the sole purpose of showing that your LLC is a legitimate entity, not just an extension of your personal endevors. That if your LLC was challenged by a lawyer, it would be harder to set a side the LLC, if you showed a legitimte business purpose. Looking at the requirments in my state, it does not look like i need an EIN for a single member LLC, since i won't have to withhold taxes for employee's, since i will have none. Please feel free to throw in your opinions and personal experience. Thanks.
I got one since my bank required it for me to open a business checking account.
Yes, you may need one for a bank acct. But, it probably would take about as much time as reading this post. Go to the IRS website (irs.gov) and read the instructions for form ss-4 and gather all of your info. Then you should be able to fill out the form on their website and get a number immediately. Or, you can still fill out and mail the SS-4.
As a previous poster suggested, it's a snap to get it online with the IRS. It also looks a whole lot better when you talk with the bank. No big deal to get.
-Jeff
Many people, vendors,,etc. will ask you for your EIN.
I like having an EIN,as it allows me to keep my SS# closer to home.
ID theft and all.
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Hello. Can anyone give the names of vendors who will grant a line of credit to a newly established "S" corp or LLC?. Thank you for your responses.
I've recently formed a LLC with my friend and we are just two partners with no employees. Are we required to get an EIN ? Would we get taxed twice on it once on partnership and once on self ?
Yes I believe you are required to get an ein. The name is kind of confusing Employer Identification number. Its not just for use as an employer you are required to use it when filing taxes. I believe its says on the irs forms not to use your ssn in place of the ein.
I may be wrong but thats how I understood when reading about it on the irs website
All you have to do is print the form(SS-4) and fill it in. Then call them and they'll take your info and give you 1 over the phone. Takes 10 minutes. They will ask you if you have filled it out and than take all your info. If you don't print it and fill it they won't take your info and they will tell you to do it then call back. Then file it into your tax folder. They will send you a copy in the mail.
If you were a sole proprietor, I could see using your ss#. However, a LLC is a separate entity from you. You could sell it, and it would exist separate from you. You don't want to comingle it with your personal affairs. That's the whole point of establishing and LLC in the beginning.
If you do decided to get an EIN, it can be done quickly by going to IRS website and requesting, or even filling out online, the Form SS-4.
Here's a link:
http://search.irs.gov/pub/query.html?col=catfoin&col=catpub&col=catnote&charset=utf-8&ht=0&qp=&qs=&qc=&pw=100%25&ws=0&la=en&qm=0&st=1&nh=10&lk=1&rf=0&oq=&rq=0&si=0&qt=ss4
Good Luck!
I believe you can use you Social Security # in the absence of an EIN in the case of a LLC with no employees.
Just get the EIN, it's so easy you have no excuse. Makes you more legit, and helps you feel more legit too. Could help you further psychologically, as now you're thinking, "Hey, I can hire people now, guess I'd better ramp up the business to justify the expense." It's surely something you'll need to do eventually anyway, when you need a secretary...contractors...lawyers (yikes!)
Thank you guys for all the info, I will go ahead and get one tommorrow by phone.
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On 2004-10-09 15:01, parrot37 wrote:
Hello. Can anyone give the names of vendors who will grant a line of credit to a newly established "S" corp or LLC?. Thank you for your responses.
They all will give you some credit.
Of course, they will all require a personal guarantee of payment, complete with satisfactory personal financial information.
Try a Business credit card through your bank. Puts you in the position of making only one personal guarantee, until your business has its own legs to stand on.
Most vendors give me great pricing on credit card purchases, as they know they will be paid without maintaining A/R, biling, collections, etc.
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mikejaquish your post was informative and kinda scared me a little
Once I get the EIN # I and my friend will try to get with an attorney to address the problems you have discussed. Thanks.