In some cases, a business owner may need more than one EIN. The EIN is a unique nine-digit number used as a tax ID for a business. Excise tax is also reported under the EIN. However, the EIN is used to report employment taxes, including withheld federal income tax, FICA tax both payable and withheld, and federal unemployment tax. The IRS requires that the owner's Social Security number be used to fill out this form, even if the LLC has an EIN. This is used to prepare Form 1099-MISC for reporting income tax. If you own an LLC and work as an independent contractor, you may receive a Form W-9 requesting your tax identification information. Single-Member LLCīefore 2009, a single-member LLC with employees could use his Social Security number for payroll tax purposes now, however, an EIN is required. An EIN is also required if the LLC is subject to alcohol, tobacco, and firearm or excise taxes. Requirements for EINĪll LLCs that have employees, including single-member LLCs, must obtain EINs from the IRS. In this case, you can file taxes for your LLC using either your Social Security number or Taxpayer Identification Number. However, you can also opt to pay taxes as a sole proprietorship, also called a disregarded entity. This is true even for an LLC with only one owner. However, the LLC is still taxable and must file a federal tax return using an EIN if it elects for taxation status as a corporation or partnership. LLCs and the IRSĪn LLC, or limited liability company, is governed by state law and is not recognized as a separate entity by the Internal Revenue Service (IRS). While some businesses use EINs, or employer identification numbers, for taxation purposes, others can file taxes using the individual owner's Social Security number. "Do LLCs need EINs?" is a common question for new business owners.
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