so i spent like 3 weeks convinced i couldn't even open a bank account or sign a lease for my studio until i had an EIN. finally got it, felt super official. now my cousin (who has an llc) says i didn't strictly need one for a single-member llc with no employees. did i waste my time or is he just messing with me? also does this change anything about how i file?
LLC Formation
I thought i needed an ein before doing anything else for my llc
You didn't waste time. Banks usually want it. My credit union wouldn't open a business checking without one, even for a single member LLC. The IRS just lets you use your SSN if you want, but good luck getting anyone to actually accept that in practice.
Your cousin is technically right but practically annoying. The EIN is free and takes 10 minutes, so who cares tbh.
lol your cousin sounds like the type to remind the teacher about homework
Also worth noting: if you ever hire anyone or add a partner, you'll need it anyway. And some vendors ask for it on W-9s. It's not wasted effort, it's just not legally mandatory at formation for a single-member LLC.
ok that makes me feel better. the bank thing was actually why i did it. they asked for it and i was like oh god i need one. so i guess i did it in the right order after all.
For filing, if you're a single-member LLC taxed as a disregarded entity, you still file Schedule C on your 1040 like a sole prop. EIN doesnt change that. You just put the EIN where it asks for it. No big deal.
wait does that mean i've been filing with my SSN when i have an EIN? am i going to jail
straight to jail. right away.
No lol. For a disregarded entity the return is under your SSN anyway, you just list the EIN on the schedule. It's fine. The EIN is basically for paperwork and banking, not a different taxpayer for that entity type.