12.1 Small Business/Self-Employed/Other Business : Entities: Sole Proprietor, Partnership, Limited Liability Company/Partnership (LLC/LLP), Corporation, Subchapter S Corporation

This is archived information that pertains only to the 2004 Tax Year. If you
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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.

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.

Keyword: Federal Tax ID Number