Does an LLC Need a Tax ID (EIN) Number?

A Limited Liability Company (LLC) will usually need a tax ID number. A tax ID number is also known as an employer identification number (EIN) as it fulfills both roles; it identifies the business for the purposes of taxes, and also identifies the business when hiring employees. There’s only one exception: a single member LLC can choose to file either under an EIN or the single member’s SSN or ITIN.

If the LLC has multiple members, then this LLC will need an EIN Number, as it cannot file under a single member’s SSN. Further, if the LLC has a single member but also hires employees, it will still need an EIN, because the EIN is required to hire employees. In general, most LLCs will acquire an EIN at the same time they incorporate. They can do these things separately; an EIN can be filed for at any time, but the company will need the EIN before it has to file its taxes. The company may also need an EIN if it pays any excise taxes, even if it is a single member.

Written by Maurice Mallory