Based on this STARTicle: http://www.choosewhat.com/starticles/sole-proprietorships-vs-single-member-llcs-which-is-better, it looks like I don't need an EIN if I am a single member LLC. Can you please verify this? If this is true, please add this to the list of businesses that don't need an EIN in this How To. Thanks!
Thank you for the post, Leo. We have added the single-member LLC as a business that does not need an EIN to the article you referenced. For more detail on single-member LLCs, you can visit the IRS website at the link below. There are a couple nuances, but in a nutshell a single-member LLC does not need an EIN if it is a "disregarded" entity that has no employees nor any excise tax liabilities. http://www.irs.gov/businesses/small/article/0,,id=158625,00.html
@Radhika Patil If your business is a partnership, a multi-member LLC, or if you have employees, an EIN is required in order to file taxes. It is the identification you will use when you file your company taxes with the IRS at the end of the year. Every financial decision made on your business’s behalf will be tied to its EIN. It’s a free and simple process that comes with several benefits: 1. File Tax Returns 2. Hire Employees 3. Maintain Corporate Veil 4. Prevent Identity Theft 5. Open a Business Bank Account 6. Build Business Credit 7. Qualify for More Business Loans
