Benefits of Using EIN for Single-Member LLCs
A single-member LLC can use either the owner’s Social Security Number (SSN) or obtain a separate Employer Identification Number (EIN). EINs help register a business entity, obtain financing, open a business bank account, and more. With an EIN, if the LLC has employees, it must obtain its own Taxpayer Identification Number.
EIN or SSN for Tax Purposes
For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner’s social security number (SSN) or EIN for all information returns and reporting related to income tax.
Clarifying the Role of Registered Agent and Managing Member
What is the difference between a registered agent and a managing member? What is the difference between an agent and a member? Employees, officers, managers, and members of limited liability companies can act as the registered agent for the company if they live or work in the same state where the company was formed.