Compliance Question of the Week
October 9, 2012
October 09, 2012
What is a Single Member LLC and does it need an EIN to open a bank account?
Per the Internal Revenue Service (IRS), a Single Member Limited Liability Company (SMLLC) can either be a corporation or a single member “disregarded entity.” This provides greater protection than a sole proprietorship but allows for different options for IRS tax reporting.
Although the SMLLC may use the owner’s Social Security number for tax reporting, it “nevertheless needs an Employer Identification Number (EIN) to open a bank account.”
Questions? Contact the Compliance Hotline: 1.800.546.4465, email@example.com.