To EIN or not to EIN

If you get an LLC, you should get an EIN for that LLC. Even operating as a sole proprietor, it is in your best interest to get an EIN. Why? Any accounts you set up (tire shops, mechanics, parts stores, banks, etc) or anywhere you're conducting business that wants your info you can give them the EIN associated with your business instead of your social security number. EINs don't cost you anything. I've got one in my name from when I was a sole proprietor, and another one from when I formed my LLC. Just make a phone call or go online...simple process that doesn't take very long at all. Probably one of the easiest things you'll do along the way.

 

Did you form an S corp also when you got your LLC? The IRS doesn't recognize an LLC as anything and my understanding is you only get one EIN per social as it's tied to your social anyway except in the case of a corp or possibly a partnership?

 

EIN number is required to file Heavy Highway Tax ( form 2290)

 

https://www.irs.gov/businesses/smal...-an-employer-identification-number-ein-online

 

Your understanding is wrong. Each EIN can only be assigned to one entity. Operate as a sole proprietor in your own name, get an EIN for that. Form an LLC, get an EIN for that. Decide to buy some rental property and form another EIN for a new LLC, get another EIN for that. Incorporate (either C or S), get another EIN for that. You might have 15-20 different EINs depending upon how many businesses you start.

And just because the IRS views a single-member LLC as a "disregarded entity" doesn't mean they don't recognize an LLC. All that means is that you'll file your taxes as you would a sole proprietor, that your "income" is everything left over after paying your business expenses...then you take your personal deductions from that to get your taxable income.

You still need to get an EIN for the LLC, because if anyone pays you enough to fill out a 1099, they'll do so under the EIN associated with your LLC. If you try using your SSN with the LLC's name, records won't match and it'll cause problems.

Get the #### EIN. Don't know why folks seem to be resisting that step in the process, but as has been noted, you MUST have an EIN to file the 2290. You CANNOT use your SSN for that. Been so long since I bought my truck I had forgotten all about that little detail, but it's true. It isn't very diffiicult...5 minute phone call and you're done.

 

That strange IRS recognize mine.

 

We had to get an EIN to open the checking account.

 

Only one EIN per day as per the link I posted.