Are you a single member limited liability company (SMLLC) who has or will have employees before January 1, 2009? IRS regulations require a single member limited liability company that is (1) owned by one individual and (2) has or will have employees before January 1, 2009 to have two Employer Identification Numbers (EIN). One EIN is assigned to the individual owner (as a sole proprietor) and one is assigned to the LLC.
If the SMLLC does not intend to have employees, then an EIN is not necessary. It should use the name and Taxpayer Identification Number of the single member owner for federal tax purposes. However, if a SMLLC, whose taxable income and loss will be reported by the single member owner, nevertheless needs an EIN to open a bank account or if state tax law requires the SMLLC to have a federal EIN, then the SMLLC can apply for and obtain an EIN. If the SMLLC has no employees, it will not use this EIN for any federal tax reporting purpose.
For more information regarding single member limited liability companies, please contact an experienced lawyer at Tipton Jones.Paul W. Tipton
(214) 890-0991
ptipton@tiptonjoneslaw.com
