Do I need an EIN for my LLC?

Question

I have formed an LLC in Indiana to hold my investment properties. According to the checklist on the IRS website I do not need an EIN. Also, according to my bank website, when I go to set up my company bank account they will use my SSN if I don't have an EIN. But I'm wondering, should I go ahead and get an EIN for my company? Will it have benefits in the future for me to get it now? Or should I wait until I hire employees someday or fall into the situation where I need one?

Thanks,

Ryan

Thanks,

Ryan

David Terbeek · Answer

The best benefit of having an EIN is that you can use that with utilities, government paperwork and anywhere else that someone wants you tax ID.  For the sake of personal security, you should avoid putting your SSN on anything that is not absolutely necessary.  An easy and free way to guard your identity.

Gord Stevenson · Answer

The main objective in using an LLC is liability protection.  That liability protection can be lost (search on "piercing the veil") if business matters that are supposed to be conducted under the LLC are mixed with personal business.  The LLC should be filing income taxes and using its own bank account set up under the LLC's identity.  Both need the LLC's EIN.  It is not hard to get an EIN for the LLC.

Jeff B. · Answer

Using  your personal SSN for a legal entity is a mistake - -you tie the LLC to you creating the legal exposure that the LLC was intended to create.

Adrien C. · Answer

I can't set up any utilities on a property in my LLC's name without an EIN. It doesn't cost anything to get it so go get it.

Owen Dashner · Answer

Yes, you should get an EIN.

Christopher Phillips · Answer

Yes. You need an EIN.

Do I need an EIN for my LLC?

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