Formed the LLC, now need the EIN

[frumdogg]

Alright, I am starting a small computer repair business out of my home. To protect my personal assets I formed an LLC (just got the paperwork back from the state yesterday). To open a bank account I need an EIN.

However, when I work through the online form from the IRS, I am unsure if what type of entity I have?

Since I am only going to be using the EIN to open a bank account, should I check Sole Proprietor, as I will be filing with my personal taxes?

Thanks.

[ciaossu]

No, if you filed an LLC, you should complete the EIN for an LLC. If you're a single member LLC, you need to create operating agreements and bylaws that represent that you are not operating the LLC as merely a pass through structure for an individual but rather a separate entity (you'll still have pass through tax structure). If you do not know how to do this, you should consult an attorney to draft up an official document, otherwise some states or all of them, may not give you the liability protection you seek that normally comes with an LLC aka it's going to be a hit or miss situation should shit come raining down if you don't have the above done.

If you're a multi-member LLC, this should be no problem. The IRS website will probably say something about switching to partnership or whatevers but continue to register the EIN under the LLC provision on their website.

[lawinc]

* All Limited Liability Companies (LLCs) with more than one member

* Any business that hires employees, including sole proprietorships and single-member LLCs

Banks may also require an EIN in order to open a business checking account.