Employer I D number for LLCs

[thomtax]

At one time there was a discussion concerning LLC EINs. I have been unable to find this thread using search, so hoping some of you can give some guidance. The discussion was that there possibly needed to be an EIN issued for the LLC and one issued for the individual owner.

Can anyone shed any light on this for me?

Thanks,
LT

[DaveinTexas]

Ein

I have found this IRS Q/A to be quite helpful: http://www.irs.gov/businesses/small/...=98011,00.html

Scroll down to LLCs with Single Members.

I hope this helps. I have also called the IRS business entity line at 1-800-829-4933 (enter at your own risk) and received various answers; some relevant and some not.

[oceanlovin'ea]

I think that if an LLC is established, there must be an EIN in the name of the LLC since that is the entity's legal name. The LLC can choose how to be taxed which will not require an additional EIN.

I suppose it would be possible for an individual to have a schedule C business(tax prep) that he operated in his own name and he would use his own personal EIN. Then he could set up an LLC for an entirely different business(ebay sales) and the LLC would have a different EIN.

Linda, EA

[DaveinTexas]

The IRS FAQ

mentions this line: "If a single member LLC has been filing and paying employment taxes under the name and EIN of the owner (THIS MAKES NO SENSE TO ME), and no EIN was previously assigned to the LLC, a new EIN will be required for wages paid on or after January 1, 2009."

I suppose this means if an already established Sole Prop uses his already established EIN to identify his LLC on his Schedule C and he never established an EIN after the LLC was formed, then he needs to get a new EIN.

This rule relates to the fact that the sole prop will no longer be on the hook for the payroll taxes, the LLC will be as of 2009.

I really wish this wording could be re-phrased so humans could understand it.

[thomtax]

Thanks everyone. My thoughts were for the LLC having an EIN, but thought I remembered a discussion on the board about having to have another EIN and wanted to be sure that I was not overlooking something. Your help is appreciated.

LT

[Black Bart]

Here's a couple of related threads:

http://forum.thetaxbook.com/showthread.php?6464-Two-FIN-s-now-required-for-disregard...

http://forum.thetaxbook.com/showthread.php?17956-EIN-Question&highlight=QUESTION...

[taxea]

The EIN follows the business not the taxpayer. The only use for the EIN is when the business has payroll to report. An LLC sole-proprietor with no payroll does not use the LLC on the 1040. It is used on a business return.

[thomtax]

http://forum.thetaxbook.com/showthre...r-disregard...

http://forum.thetaxbook.com/showthre...ht=QUESTION...

Thanks BB. The search program and I do not get along well. When I put terms in for search, I always get an answer of nothing found. I had looked for these but to no avail.

LT