Requesting an EIN for a single-member LLC - Please read

Important information about requesting an EIN for your LLC :

Please read this if:

1. You (the owner of the LLC) are filing as a single-member LLC and

2. You will have employees.

The IRS has changed its requirements for Employer ID Numbers for single-member LLC’s. Before you can request an EIN for your LLC, you must first obtain an EIN for yourself as a sole proprietor. So you will have TWO EIN’s for your practice.

The IRS calls a single member LLC a “disregarded entity,” meaning that it is disregarded for the purpose of filing a federal tax return. In this case, the LLC profits and loses are filed as part of the owner’s personal income tax return (Form 1040). Apparently, what has happened is that the individual states do not disregard the entity, requiring the companies to run parallel accounting systems for state and federal.

Bottom line: If you want to set up a single-member LLC, first get an EIN for yourself as a sole proprietorship, then get the EIN for the LLC.

Don’t ask me; I don’t make the rules. Just do it.