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I formed a new LLC. How do I get a Federal Employer ID number and identify my entity type for tax purposes?
Posted in Tax and Finance
I formed a new LLC. How do I get a Federal Employer ID number and identify my entity type for tax purposes?

In the new Legal Forum Column, Ross D. Cohen discussed how a new LLC can get a Federal Employer ID and identify the correct entity type for tax purposes. Read his advice below and don’t miss our monthly Legal Forum Column in Louisville Business First.

Question
I formed a new LLC. How do I get a Federal Employer ID number and identify my entity type for tax purposes?

Answer
Generally, a business needs a Federal Employer ID number (EIN) when it’s initially created. Applying online (irs.gov), by fax, by mail, or by telephone for an EIN is a free service offered by the Internal Revenue Service. The online EIN application is their preferred method, and is available for most entities.
 
When applying, you must indicate how the LLC will be treated for tax purposes. By default, if the LLC has one owner (member), it’s treated as a “disregarded entity” reported on the sole owner’s tax return. Alternatively, such LLC can make an affirmative election to be treated as a regular (“C”) corporation or, if eligible, an “S” corporation. An LLC with two or more members would have partnership status, unless it affirmatively elects to be treated as either a C or S corporation. An attorney can help identify the best tax treatment for your LLC and guide you through the process.


To learn more about Ross D. Cohen and his practice, please visit his profile.

To view the latest Legal Forum column, please click here.

  • Partner

    Ross D. Cohen serves as Co-Leader of the Federal Tax Team and concentrates his practice in the areas of tax and business law, focusing on federal tax transactional and planning issues of partnerships, joint ventures, limited ...

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