My business partner lives out of state (in WI), but our business is going to be an LLC in WA, where I live. We don't have any paid employees just yet (shoot, we aren't even getting paid yet!), though we plan to hire some a couple years down the line. I cannot find a straight answer anywhere to this question - do my partner and I have to get employee identification numbers (EINs), or will our SSN numbers work for the LLC?
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Yes, you will need an EIN. Every business is required to get an EIN, even if the business has no employees. The only exception is sole proprietors who can use their SSN if they choose to, but even in this case it is not recommended. Getting an EIN is free, and you can complete it in a matter of a few minutes online on the irs website. Here is another reference. |
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An EIN is an employer identification number, not an employee identification number. Your SSN just works for your employees. In terms of whether your business needs an EIN, the IRS says this: http://www.irs.gov/businesses/small/article/0,,id=97872,00.html |
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Yah in a nutshell the answer is yes. You need it to open bank accounts and act like a business. |
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