Everything You Need to Know About LLCFBA
What is an Employer Identification Number (EIN)?
Also known as a “Tax ID number,” the EIN is a business federal tax ID that works like a Social Security Number for your business. Your EIN helps you file tax returns for your business, is typically required to open a business bank account under the name of your business, helps you properly pay and account for wages and payroll for your company’s employees, and otherwise helps establish credit for your business and maintain your business’s official standing as a legal business entity.
Do You Need a Federal EIN for Your Business Entity?
In general, unless your business is a sole proprietorship with no employees and no separate legal entity for your business, you need to get an EIN. Sometimes if you own an LLC and it is a single-member LLC with simple accounting, you can get by filling an official form through accountant for tax purposes and for receiving payments from clients. But even the simplest businesses can generally benefit from using an EIN – the EIN serves as a tax ID for your LLC or other corporate entity.
Federal Employer Identification Number (EIN) / Tax ID Number
The SS4 is the IRS form required to obtain an EIN (Employer Identification Number, frequently called a Tax ID number). The EIN/Tax ID number can be thought of as a Social Security Number for your business. It is usually required to open a bank account in the name of the business and to properly pay and account for any wage/payroll employees of your company. LLCFBA will obtain your federal EIN via fax within 7- business time days
The following business entities should get an EIN:
• Partnerships
EIN is required for all general partnerships and limited partnerships.
• Multiple-member LLCs
This type of business entity needs an EIN regardless of whether you have employees.
• Single-member LLCs
If you plan to hire employees within the next 12 months, you will need to get an EIN. And even if your single-member LLC has no employees, it’s still a good idea to get an EIN because many banks and lenders will prefer to use an EIN to do business with you.
Disclaimer : This information is made available by LLCFBA.com, (the “Company”), and is intended for educational purposes only, and it is not legal or tax advice. No action should be taken in reliance on any information in or on this site without verification with legal or tax counsel, after review of the facts and current law, that the action to be taken is appropriate under the circumstance. Except as expressly provided to the contrary in writing by the Company, the materials contained on this site are provided on an “as-is” basis without warranties of any kind, either express or implied. Company disclaims all other warranties, express or implied, including, without limitation, implied warranties of merchantability, fitness for a particular purpose, title and non-infringement as to the information, content and materials on and in the site. Company does not represent or warrant that materials on and in the site are accurate, complete, reliable, current or error-free.