Yes, a multi member LLC is required to have an EIN (Employer Identification Number). The IRS treats multi-member LLCs as partnerships by default for tax purposes, and an EIN is necessary for proper tax filing, employee payroll, and business banking.
Why Does a Multi Member LLC Need an EIN?
A multi member LLC needs an EIN for several key reasons:
- Tax Filing: The IRS requires partnerships (the default tax status for multi-member LLCs) to file an information return (Form 1065), which requires an EIN.
- Banking: Most banks will not open a business account without an EIN.
- Hiring Employees: If your LLC hires employees, you must have an EIN for payroll tax purposes.
- Compliance: Certain licenses and permits require an EIN to apply.
How to Get an EIN for a Multi Member LLC
- Apply Online: Go to the IRS EIN Assistant (available Monday to Friday, 7 AM–10 PM EST).
- Fax or Mail Form SS-4: You can also submit IRS Form SS-4 by mail or fax.
- Phone (International Applicants Only): Call +1-267-941-1099 if you are applying from outside the U.S.
Is There a Fee?
No. The IRS issues EINs for free.
Final Thoughts
So, does a multi member LLC need an EIN? Absolutely. It’s a crucial identifier for taxes, legal compliance, and business operations. Whether you’re just forming your LLC or planning to expand, make sure obtaining an EIN is on your checklist.
