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What is an EIN? An Employer Identification Number (EIN) is a nine-digit number that IRS assigns in the following format: XX-X.
Even though a Single-Member LLC is, by default, taxed like a Sole Proprietorship, the IRS looks at the Sole Proprietorship and the new LLC as two different ?entities?? therefore they require that you get a new EIN for your LLC.
For the most part, LLC and Ltd. are the same type of company. LLC (limited liability company) is more commonly used in the U.S. whereas Ltd. (limited) is more commonly used in the U.K. The differences in types and jurisdictions stipulate the different rules regarding ownership, taxes, and dividends.
An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN. An LLC applies for an EIN by filing Form SS-4, Application for Employer Identification Number.
If you are planning to start a new business and the entity being formed is a Limited Liability Company (LLC) then you will need to apply for and obtain a new EIN.