Single member LLC, no employees, no real revenue yet. I filed the articles and got the approval from the state, but I've been dragging my feet on the EIN. Do I actually need one to open a business bank account or file taxes, or can I keep using my SSN for now? I keep seeing conflicting stuff online.
LLC
I formed my LLC but haven't decided whether to get an EIN
Banks are going to ask for the EIN more often than not. Some credit unions will use Your SSN for a sole prop-ish setup but a lot won't for an LLC.
Why are you dragging your feet? It takes like ten minutes on the IRS site.
Honestly because I don't fully understand tthe consequences of getting one vs. not. I thought maybe keeping it simple with my SSN was fine until I had actual income.
Getting an EIN doesn't mame you suddenly liable for payroll taxes or anything. It's just an ID number. You're overthinking it.
It's free, by the way. If someone tries to charge you for an EIN application, run.
I still don't have one for my single member and my bank didn't care, but my accountant has been bugging me about it for two years. So. Mixed signals.
Your accountant is bugging you for a reason, probably because they want to keep your SSN offf paperwork where possible.
Serious question though, is there any actual downside to haVing one? I've never heard of one.
there's basically no downside. The main annoyance is that once you have it, some forms want it instead of your SSN and you have to remember the number.
The IRS online application is genuinely painless, but it does require you to figure out your "responsible party" and all that before you click through. It's not hard, just be ready to fill in the fields.
I formed mine in March and still haven't gotten one either. Following this because every time I try to research it I end up reading about tax elections I don't need and closing the tab.
The tax election rabbit hole is real. Do not need to know about S-corp elections on day one, people.
I'll add one thing nobody mentions: if you ever need to give a W-9 to a client, they'll usually want the EIN, not your personal SSN, especially for a multi-member LLC. Single member is murkier but clients get weird about it.
Okay so the consensus leans toward just doing it and the bank piece is the part that nudges me. I think I was imagining it was a bigger commitment than it is.
Honestly the hardest part for me was remembering which browseer tab had the confirmation page afterward.
Also there's a weird thing with the online app where it sometimes rejects you for no clear reason and tells you to apply by fax. Don't panic if that happens, just send it in by mail.