IRA Financial Group
IRA Financial Group

Do I Need a Federal Tax ID for my LLC?

What is an Employee Identification Number?

An Employer Identification Number (EIN) is also referred to as a Federal Tax Identification Number. The EIN is generally used to identify a business entity. In general, every business requires an EIN. There are several ways to obtain an EIN.

Do I need an Employee Identification Number?

In general, you will need an EIN if you answer "Yes" to any of the following questions:

  • Do you have employees?
  • Do you operate your business as a corporation or a partnership?
  • Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
  • Do you withhold taxes on income, other than wages, paid to a non-resident alien?
  • Do you have a Keogh plan (A tax deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes)?
  • Are you involved with any of the following types of organizations?
    • Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
    • Estates
    • Real estate mortgage investment conduits
    • Non-profit organizations
    • Farmers' cooperatives
    • Plan administrators

Do I need an Employee Identification Number if I’m a Single Member Limited Liability Company

No – the sole member of a single member LLC will not need a separate EIN for the LLC if the sole owner of the LLC and the LLC has no employees. The sole member of a single member LLC can use his or Social Security Number instead of applying for an EIN.