• Published by
  • 9-June-2023

Why Do I Need an EIN Number for an LLC

Starting a business takes more than just a growth strategy and dedicated resources. To excel without obstacles, you need to understand government regulations and taxation. One of the prime components of registering your business in US is the EIN number. In this short blog post, we will explain what is an EIN number and why you need an EIN number for an LLC.

Quick Look Can I Register Two LLCs on One EIN?

Yes you can use the same EIN for multiple LLCs if they aren’t established as two separate legal entities, even if your LLCs have different trade names or “DBA” names.

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What is an EIN Number?

According to the IRS, EIN stands for “Employee Identification Number. Most businesses generally need this because they hire “employees.” The US government uses EIN to identify business entities. EIN is also called a Federal Tax Identification Number and is used to file taxes with the government. EIN is a crucial part of LLC registration in the US. There are various methods of acquiring an EIN for your LLC. But you must check with your state regulations before you forward your request. Now let’s move on to the million-dollar question.

Why Do I Need an EIN Number for an LLC?

If you’ve decided to take your side hustle to a new level with the ambition to start your LLC Company in the US, you might be wondering why do you need an EIN for an LLC. We get this question a lot, so we decided to make a quick blog post out of it to put all the information you need to start your LLC in the US. In short, an LLC with employees or the liability to pay excise tax must have an EIN. Excise tax is a form of tax imposed on purchasing goods and services. So if you’re doing business in the US and involved in selling or buying goods or services, you’ll have to file excise tax. For this purpose, an LLC is required to have an EIN. However, a single-member LLC with no employees and no liability to pay excise tax is exempted from acquiring an EIN number.

What Is the Cost of an EIN Number?

Applying for an EIN is a free service offered by the IRS, as it’s a crucial component for setting up your LLC in the US. But if you need expert help in registering and growing your LLC in the US, you need a partner like Get Set LLC to put your dream into action.

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Do Non-US Citizens Need an EIN Number to Register an LLC in the US?

A US citizen might have any form of taxpayer identification numbers, such as social security number or any other paperwork. However, non-US citizens need an EIN to register an LLC in the US because IRS uses your EIN to identify your business entity. IF you’re not from the US, you can check out our country guide for more information about your LLC registration process.

What Is the Difference between an EIN and a Taxpayers Number?

A federal taxpayer’s number and EIN are simply different names of the same number. Both EIN and FTN are used to identify taxpayer information for individuals and business entities.