The IRS treats single-member LLCs as sole proprietorships by default. Single-member LLCs are not typically required to have an Employer Identification Number (EIN) unless they have employees or are required by the state to file an excise tax. Note that they may still request an EIN if desired for tax reasons. When there are multiple members, the LLC is required to have an EIN. Keep in mind that LLCs also have the option to be taxed as a corporation.
Single-member LLCs must apply for an EIN when adding a new member. If the company already has an EIN because there are multiple owners or because the owner has taken the steps needed to obtain an EIN, then Form 8832 must be filed with the Internal Revenue Service (IRS). This is to ensure that the IRS has an accurate record of the owners.
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