Posted by Jonathan on May 14, 2004 at 07:51:20:
Is there any advantage/disadvantage to obtaining an EIN if it is a single owner LLC?
Many thanks,
Jonathan
EIN for single member LLC - Posted by John Smith
Posted by John Smith on May 08, 2004 at 18:56:31:
According to IRS pubblication 1635, a sole proprietor who conducts business as a LLC does not need a separate EIN for the LLC. If I were to open a bank account with my SSN instead of EIN, does this in any way jeopardize protection I would have with LLC?
John
Re: EIN for single member LLC - Posted by William Bronchick
Posted by William Bronchick on May 09, 2004 at 10:23:36:
Under state law, an LLC will afford its owners protection from liability. Under federal law, a single member LLC is disregarded for tax purposes. The two are non inconsistent, but merely an example of how the Supremacy clause of the U.S. Constitution allows a federal agency to treat an entity differently for tax purposes than a state court will treat it for liability purposes.
Re: EIN for single member LLC - Posted by John Smith
Posted by John Smith on May 09, 2004 at 18:11:28:
Thank you for your response.
So sounds like I am still protected when my SSN is used to open up a bank account.
But if I were to get the EIN for my single member LLC, do I have to file a separate tax return or is it still a pass through?
Thank again in advance.
John
Re: EIN for single member LLC - Posted by William Bronchick
Posted by William Bronchick on May 09, 2004 at 18:35:15:
With a separate EIN, you don’t have to file a separate return. Many sole proprietors have EIN #'s and file schedule C.