How to Fill Out SS-4 for a Single Member LLC
Navigate EIN needs for your Single Member LLC. This guide simplifies the SS-4 form process, ensuring accurate submission for your business.
An Employer Identification Number (EIN) is a unique nine-digit tax identification number issued by the Internal Revenue Service (IRS) to business entities. Like a Social Security Number, an EIN identifies a business for tax purposes, enabling it to fulfill federal tax obligations. For a Single Member Limited Liability Company (SMLLC), obtaining an EIN is an important step in formalizing operations.
When a Single Member LLC Needs an EIN
By default, a Single Member LLC is considered a “disregarded entity” for federal income tax purposes, meaning its income and expenses are reported on the owner’s personal tax return, typically using their Social Security Number (SSN). However, an EIN is required if the SMLLC hires employees, necessitating the filing of employment tax returns. An EIN is also mandatory if the SMLLC is required to file certain excise tax returns, such as those related to alcohol, tobacco, or firearms.
An EIN is also required if the SMLLC elects to be taxed as a corporation, either an S corporation by filing Form 2553, or a C corporation by filing Form 8832. Additionally, an EIN is necessary for federal tax compliance if the SMLLC is involved in complex structures like trusts, estates, non-profit organizations, or maintains a Keogh plan.
Beyond federal tax requirements, an EIN is often a practical necessity. Many financial institutions require an EIN to open a business bank account, which is important for separating personal and business finances and maintaining the LLC’s limited liability protection. State tax laws or requirements from vendors and clients may also compel an SMLLC to obtain an EIN.
Information to Prepare for Form SS-4
Before applying for Form SS-4, gather all necessary information. You will need the legal name of your LLC, which is the name officially registered with the state, and any trade name or “doing business as” (DBA) name if it differs. Both the mailing address, where the IRS sends correspondence, and the physical location of the business are required. If the mailing address is a post office box, a physical street address must also be provided.
The “responsible party” is typically the sole owner for an SMLLC, controlling the entity and its assets. Their full name, title (e.g., “Member”), and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) must be provided. You will need to specify the entity type as “Limited Liability Company (LLC)” and indicate it is a “Single Member LLC.”
Other details include the primary reason for applying for the EIN (e.g., “Started new business” or “Hired employees”), the date the business started or was acquired, the closing month of your accounting year (often December), and the highest number of employees expected in the next 12 months, if applicable. You will also describe the principal business activity and the primary product or service offered.
Completing the SS-4 Application for a Single Member LLC
On Line 1, enter your LLC’s legal name exactly as registered with the state. If your business uses a trade name, enter it on Line 2. Line 3 is typically left blank for an SMLLC unless a “care of” person is designated. Your mailing address goes on Lines 4a and 4b. If different, provide the physical street address on Lines 5a and 5b; post office box numbers are not acceptable here.
Line 6 requires the county and state of your principal business location. For Lines 7a and 7b, enter the responsible party’s full name (the owner for an SMLLC) and their SSN or ITIN. On Line 8a, mark “Yes” for LLC. For Line 8b, enter “1” for single-member, and on Line 8c, indicate if the LLC was organized in the United States.
On Line 9a, “Type of entity,” indicate your SMLLC’s federal tax treatment. If a disregarded entity taxed as a sole proprietorship, check “Other (specify)” and write “Disregarded entity – Sole Proprietorship.” If electing corporate taxation (S or C corporation), check “Corporation” and write “Single-member” along with the form number (e.g., “1120” for C-Corp or “1120S” for S-Corp).
On Line 10, select the primary reason for applying (e.g., “Started new business” or “Hired employees”). Complete Lines 11 through 18 with details like the business start date, accounting year end, expected employees, principal business activity, and primary product or service. The responsible party must sign and date the application, providing their title and contact information.
Submitting Your EIN Application
After completing Form SS-4, choose a submission method. The most efficient method for domestic applicants is applying online through the IRS website. This allows for immediate EIN receipt upon successful completion in a single session. The online system is generally available during specific hours and is recommended for its speed.
Alternatively, submit the completed Form SS-4 by fax. For applicants in the 50 states or District of Columbia, fax to 855-641-6935. If you provide a return fax number, the IRS typically faxes the EIN back within four business days. This method is faster than mailing.
Mailing Form SS-4 to the IRS is an option for physical submission. The mailing address for U.S. businesses is Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. This is the slowest method, with processing times typically ranging from four to eight weeks. Regardless of the submission method, retain a copy of the submitted Form SS-4 for your records. Once the EIN is assigned, the IRS will send an official confirmation letter or notice, which should be kept securely with other important business documents.