However, if an LLC has a sole proprietor and no employees, then the company owner can use his Social Security Number for tax filings instead of getting a tax ID number. Once you've been issued a tax ID number, the IRS will use the number to identify your company, much as the government uses Social Security Numbers to identify individual people.Įntities that are required to obtain tax ID numbers include:Ī sole proprietor of an LLC that is interested in hiring an employee for the first time will need a tax ID number before they can make their hire. Tax ID numbers are also commonly known as Employer Identification Numbers (EIN). Similarly, LLCs that have multiple members must have a tax ID. If a limited liability company has even one employee, the IRS requires the company to have a tax ID number. How to Get a Tax IDĪn LLC tax identification number is a nine-digit number the IRS uses to distinguish your company from other business entities.
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