EIN for LLCs (single-member vs multi-member)

Oct. 20, 2025, 6:39 a.m.
Let’s dive into EIN for LLCs, focusing on the differences between single-member and multi-member LLCs.
EIN for LLCs (single-member vs multi-member)

1. What is an EIN for an LLC?

  • An EIN (Employer Identification Number) is a unique 9-digit number issued by the IRS to identify your LLC for tax and legal purposes.

  • Even if your LLC doesn’t have employees, you might need an EIN for:

    • Opening a business bank account

    • Filing certain taxes

    • Hiring employees in the future

    • Separating business and personal finances

2. Single-Member LLC (SMLLC)

  • Definition: An LLC with one owner (called a “member”).

  • Tax treatment: By default, a single-member LLC is considered a disregarded entity by the IRS.

    • This means the LLC’s income and expenses are reported on the owner’s personal tax return (Form 1040, Schedule C).

  • EIN requirement:

    • Optional if no employees and you don’t have excise taxes.

    • Required if:

      • You hire employees

      • Operate as a corporation for tax purposes (by filing Form 8832 or 2553)

      • File certain excise or pension plan taxes

Example:

  • Jane owns a single-member LLC providing consulting services. She has no employees and reports income on Schedule C. She may not need an EIN and can use her SSN, though getting an EIN is often recommended for separating personal and business finances.

3. Multi-Member LLC (MMLLC)

  • Definition: An LLC with two or more owners (members).

  • Tax treatment: By default, the IRS treats it as a partnership.

    • It must file Form 1065 (U.S. Return of Partnership Income).

    • Each member reports their share of income/expenses on Schedule K-1.

  • EIN requirement:

    • Always required, even if there are no employees, because the LLC must file a partnership tax return.

Example:

  • Tom and Lisa form a multi-member LLC for a marketing business. They must get an EIN to file Form 1065 and report their income shares on Schedule K-1.

4. Key Differences Between SMLLC and MMLLC Regarding EIN

Feature Single-Member LLC Multi-Member LLC
Default tax classification Disregarded entity Partnership
Required EIN Optional (unless employees/tax elections) Required
IRS tax form Schedule C (owner’s 1040) Form 1065
Number of owners 1 2+
Reporting to IRS On personal return Separate entity return + K-1s for members

5. Practical Recommendations

  • Even if optional, single-member LLCs often get an EIN to:

    • Open a business bank account

    • Protect personal SSN

    • Hire employees in the future

  • Multi-member LLCs must get an EIN before filing taxes.

  • EIN is free from the IRS and can be applied online in minutes.