I recently formed a limited liability company (LLC). The LLC has
no employees. Do I need a separate Federal Tax ID number for the LLC?
No, you will not need a separate Federal Tax ID number for the LLC if you
are the sole owner of the LLC and the LLC has no employees. If you are the
sole owner of the LLC and the LLC has employees, you will need to get a separate
Federal Tax ID number, if you choose to have the LLC report and pay employment
taxes with respect to employees of the LLC. If you are not the sole owner
of the LLC, you will need a separate Federal Tax ID number for the LLC. See
Notice 99-6, 1999-1 CB 321.
References:
- Publication 1635 (PDF), Understanding your EIN
- Employer identification Number - IRS
- Form SS-4 (PDF), Application
for Employer Identification Number
- Form 8832 (PDF), Entity Classification
Election
12.5 Small Business/Self-Employed/Other Business : Form SS–4 & Employer Identification Number (EIN)
Is an employer ID number the same as a tax ID number?
Yes, an employer identification number, or EIN, is also known as a taxpayer
identification number, or TIN. A sole proprietorship that has no employees
and files no excise or pension tax returns and a LLC with a single owner (where
the owner will file employment tax returns) are the only businesses that do
not need an employer identification number. In these instances, the sole proprietor
uses his or her social security number as the taxpayer identification number.
Does a small company need a tax ID number?
A sole proprietor who does not have any employees and who does not file
any excise or pension plan tax returns is the only business person who does
not need an employer identification number. In this instance, the sole proprietor
uses his or her social security number as the taxpayer identification number.
Under what circumstances am I required to change my employer identification
number (EIN)?
If you already have an EIN, and the organization or ownership of your business
changes, you may need to apply for a new number. Some of the circumstances
under which a new number is required are as follows:
An existing business is purchased or inherited by an individual who will
operate it as a sole proprietorship
A sole proprietorship changes to a corporation or a partnership,
A partnership changes to a corporation or a sole proprietorship,
A corporation changes to a partnership or a sole proprietorship, or
An individual owner dies, and the estate takes over the business.
This list is not all inclusive. Please refer to the website www.irs.gov
under Business, then Employer ID Numbers.
Do businesses have to obtain the taxpayer identification number
(TIN) from vendors and keep it somewhere on file?
In general, businesses are required to obtain the TIN from vendors if they
are required to file any return, document or other statement that calls for
the taxpayer identification numbers (TINs) of other taxpayers. Form W-9 (PDF), Request for Taxpayer Identification Number and Certification, can
be used to make the request. The business should also maintain the verification
of these numbers in their records.
