What Is an EIN?

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is the primary identification number for a business entity. An EIN is not the same number as the filing number that the Delaware Secretary of State issues to each new entity. An EIN must be applied for separately from the Delaware filings and directly with the IRS.

Do I Need an EIN For My LLC?

A company is required to obtain an EIN from the IRS when they hire employees and when they need to file certain tax returns. An EIN is required to open a business bank account at many banks.

Even in instances when an EIN is not required by the IRS, an owner of a business may want to obtain one so they do not need to use their SSN for the business.

Can an LLC Use a Social Security Number?

A single-member LLC, in most instances, is permitted to use the member’s SSN for the business. However, this is not recommended. An LLC should obtain an EIN regardless of membership or tax status so as to ensure there is not liability of the business that is imputed to the owner via “alter-ego” liability theory.

What Is an EIN For?

The EIN is typically used on tax filings, bank account applications, and other purposes when a third party needs to identify an entity doing business locally or across state lines.

Does an LLC Need an EIN?

The IRS says that an LLC must have an EIN if it employs people or if it is required to file certain excise tax forms. Even single-member LLCs classified as disregarded entities will need to obtain an EIN if they fall into this category. If a single-member LLC does not have employees and does not have excise tax liability, it does not need to obtain an EIN. However, even those LLCs should obtain an EIN instead of using the member’s SSN to maintain the separateness between the LLC and its owner.

Does a Corporation Need an EIN?

Any corporation with more than one shareholder is required to have an EIN. A corporation that has one owner may use that person’s SSN, however it is recommended that the corporation obtain an EIN to maintain the separateness between the corporation and its owner.

Does a Single Member LLC Need an EIN?

The rule above also applies to members of LLCs. A single member LLC may use the member’s SSN, however they should obtain an EIN for the business.

How do I get an EIN?

You can get it through the IRS directly or IncNow® can help. Just select the EIN add-on when you place your order for a new entity formation with IncNow, or order the service on our website separately.

When Should I Get an EIN?

We recommend that you obtain an EIN number soon after the formation of your LLC whether you are forming a single-member or multi-member LLC. IncNow can assist with obtaining the EIN for United States residents and non-residents alike.

You may order our EIN service at the time you place your initial LLC formation order or you may come back at a later time. To order this service, visit our EIN order page.

Does an EIN Expire?

An EIN, like a Social Security Number, does not expire. Once the IRS issues an EIN to your company, it will always be associated with your corporation or LLC.

Can I Reuse an EIN?

Separate companies cannot use the same EIN number. EIN numbers are unique to the entities to which they are assigned. For example, two LLCs owned by the same holding company cannot use the same EIN number.

The post Do I Need an EIN for My Delaware LLC? appeared first on IncNow.

We recommend that you obtain an EIN soon after the formation of your LLC whether you are forming a single-member or multi-member LLC. A number may be obtained beforehand, but it is best to wait in the event there are issues with the filing that require a different name be used for the LLC. It is best to have the LLC approved before obtaining the company’s EIN.

IncNow® can help obtain the EIN for your LLC (or any other entity) if you would like. Find out how by contacting one of our Incorporation Specialists today.

The post Does My Company Need an EIN from the IRS? appeared first on IncNow.

When initially drafted, members have the power to craft their own LLC Operating Agreements. An LLC Operating Agreement is flexible for business needs and adaptable to any business application. The LLC also has fewer business formalities than any other business entity. The LLC is very easy to set up and operate. The LLC provides all the protection of a corporation and arguably more because it can keep creditors of members from becoming owners. The LLC also limits the right of creditors to a charging order remedy, and not a liquidation or sale of a business interest. A creditor can only become a passive lien holder, not an owner with voting rights.

An LLC will be taxed as a partnership/sole proprietorship or the LLC can make a federal tax election to be taxed as an S-Corporation or C-Corporation with the IRS. This “3-way” tax flexibility is not available to a corporation and makes the LLC unique and desirable. That is called the “check the box” tax election.

For simplicity, flexibility, protection, and tax advantages, most people choose an LLC.

The post What Entity Should I Form? appeared first on IncNow.

• Legal process (lawsuits)
• Certified Mail
• Government mail from the state of incorporation

Should you wish to have an address for banking or general business, we have an affiliate who provides virtual office and mail forwarding services.

The post Does IncNow Offer a Mail Forwarding Service? appeared first on IncNow.

• Forming a Delaware Series Limited Liability Company (Series LLC)
  • For more information about the Series LLC, such as advantages of a Series LLC, please visit our Series LLC page. Incnow has established over 1,000 Series LLCs over the past 10 years and is expert in the field of the Series LLC.
• Domesticating a foreign entity in Delaware as a Corporation or Limited Liability Company (LLC)
  • Many foreign companies decide to start doing business in the United States after formation, and most choose to come to Delaware for its business-friendly climate. Incnow can help domesticate your foreign company in Delaware.
• Incorporating a Delaware Special Purpose Entity (e.g. a Springing Member LLC)
  • Banks will often require a Special Purpose Entity to obtain securitized commercial real estate loans. The Williams Law Firm, P.A. can help you draft an Operating Agreement to satisfy these requirements and provide lenders counsel with a Delaware legal opinion letter.
• Converting a Delaware Corporation into a Delaware LLC
• Converting a Delaware LLC into a Delaware Corporation
  • Evolving small businesses may find that they wish to change their state of domestication to Delaware, or change from an LLC to a corporation in order to grow or go public with their small business. Corporations may want to change their business organization to take advantage of the taxation status of the LLC. This is like a short form merger. IncNow can help with both converting an LLC to a corporation and converting a corporation to a Delaware LLC. Additionally, Incnow can help retrieve and obtain needed supporting documents from Delaware to assist in this process.

The post Does IncNow® Offer Other Specialized Incorporation or LLC Services? appeared first on IncNow.

We recommend obtaining an EIN even if the LLC is a single-member LLC. We provide the IRS Form SS-4 to apply for an EIN with each new LLC package.

For an additional fee, we can also assist you in completing and filing Form SS-4 to obtain the EIN.

The post How Can I Obtain an EIN for My Company? appeared first on IncNow.