EIN for multi-member LLC

Research summary and key findings: Comprehensive guidance for EIN for multi-member LLCs (federal and representative state-specific notes) — ready to be used to draft the blog post and newsletter.Federal (IRS) — core rules and practical steps- Default classification: A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 to elect corporate treatment. (IRS: "A domestic LLC with at least two members is classified as a partnership...").- EIN requirement: Multi-member LLCs generally need an EIN (partnerships and entities with employees must obtain EINs).

The IRS EIN application is free and available online; the IRS advises forming the entity with the state first and then applying online via the EIN Assistant. (IRS: "Get an employer identification number...

Generally you need an EIN to: Hire employees; Operate a partnership or corporation; Pay sales and excise taxes...")- Responsible party: The EIN application requires a responsible party’s SSN/ITIN. The online application requires the responsible party’s SSN/ITIN and issues EINs immediately for eligible applicants whose principal place of business is in the U.S.- Partnership tax filings: If the LLC is treated as a partnership, it should file Form 1065 and provide Schedule K-1s to members.

Members typically report flow-through income and may owe self-employment tax on their distributive share per partnership rules. (IRS: "If the LLC is a partnership, normal partnership tax rules will apply...

Form 1065... Schedule K-1...")- When a new EIN is required: IRS guidance lists events requiring a new EIN (e.g., termination of an LLC and formation of a new entity, some changes in ownership/structure).

The IRS also lists changes that do NOT require a new EIN (e.g., change of name or address, change in tax election to a corporation). (IRS: "Get a new EIN if you: Terminate an existing LLC and form a new corporation or partnership...

You don’t need a new EIN if you: Change your name or location...")- Form SS-4: Use Form SS-4 or the online EIN Assistant. The SS-4 instructions and Form 8832/2553 (entity classification elections) are relevant where the LLC elects corporate or S-corp treatment.- Practical uses for EIN: bank accounts, payroll reporting (Form 941/940/W-2), issuing 1099s, federal excise reporting, and establishing business credit.

Banks typically require an EIN (or SSN for sole proprietors) plus formation documents and owner info to open business checking accounts.Representative state-specific highlights and obligations (CA, NY, TX, FL, IL)- California (FTB & SOS): California treats multi-member LLCs consistent with federal classification.

Key state obligations include the $800 annual minimum franchise tax, an additional LLC fee for higher revenues (thresholds and fee tiers), filing Form 568 (LLC Return of Income) and filing the Statement of Information with the Secretary of State on schedule.

California requires LLCs to register with SOS before applying for federal EIN to avoid delays. (FTB: "Every LLC that is doing business or organized in California must pay an annual tax of $800...")- New York: Multi-member LLCs will typically need to register for employer withholding and sales tax collection if they hire employees or make taxable sales in NY; LLC formation/filing is with the NY Department of State and tax registration is with NY Dept. of Taxation and Finance. (NY tax guidance: registration for withholding/sales tax is required for employers/vendors.)- Texas (Comptroller): Texas imposes a franchise tax on entities doing business in Texas; registration for sales tax permit and franchise tax account is required where applicable.

Texas franchise tax reports are due annually (May 15) and the comptroller provides online account management and filing. (Texas Comptroller: "The Texas franchise tax is a privilege tax... Annual Franchise Tax Reports due May 15.")- Florida: Florida Department of Revenue handles business tax registration (sales tax, reemployment/unemployment tax for employers).

Businesses hiring employees in Florida must register for reemployment tax and any applicable sales tax accounts. (Florida DOR: business registration and tax accounts.)- Illinois (IDOR): Register via MyTax Illinois to obtain an Illinois account for withholding, sales tax, and other obligations.

Illinois posts guidance and updates (e.g., sales tax and remote seller changes) and provides online account management tools. (IDOR: MyTax Illinois registration portal and business guidance.)State differences to highlight in content- Franchise/annual LLC taxes: e.g., California’s $800 minimum and tiered LLC fee vs.

Texas’s franchise tax; many states have annual reports/filings and franchise or privilege taxes with differing due dates and thresholds.- Employer registration: All states require employers to register for withholding and unemployment/reemployment accounts before payroll begins; the process and portals differ by state.- Sales tax registration: States require sales/use tax permits for taxable sales; thresholds and remote seller rules vary by state and have been been updated in recent years.- No state-level "EIN": EIN is federal only.

States use their own account numbers/IDs for withholding, sales tax, unemployment (state account numbers), and SOS business IDs.Practical checklist for a multi-member LLC (actionable steps to include in the blog)

Research summary and key findings: Comprehensive guidance for EIN for multi-member LLCs (federal and representative state-specific notes) — ready to be used to draft the blog post and newsletter.Federal (IRS) — core rules and practical steps- Default classification: A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 to elect corporate treatment. (IRS: "A domestic LLC with at least two members is classified as a partnership...").- EIN requirement: Multi-member LLCs generally need an EIN (partnerships and entities with employees must obtain EINs).

The IRS EIN application is free and available online; the IRS advises forming the entity with the state first and then applying online via the EIN Assistant. (IRS: "Get an employer identification number...

Generally you need an EIN to: Hire employees; Operate a partnership or corporation; Pay sales and excise taxes...")- Responsible party: The EIN application requires a responsible party’s SSN/ITIN. The online application requires the responsible party’s SSN/ITIN and issues EINs immediately for eligible applicants whose principal place of business is in the U.S.- Partnership tax filings: If the LLC is treated as a partnership, it should file Form 1065 and provide Schedule K-1s to members.

Members typically report flow-through income and may owe self-employment tax on their distributive share per partnership rules. (IRS: "If the LLC is a partnership, normal partnership tax rules will apply...

Form 1065... Schedule K-1...")- When a new EIN is required: IRS guidance lists events requiring a new EIN (e.g., termination of an LLC and formation of a new entity, some changes in ownership/structure).

The IRS also lists changes that do NOT require a new EIN (e.g., change of name or address, change in tax election to a corporation). (IRS: "Get a new EIN if you: Terminate an existing LLC and form a new corporation or partnership...

You don’t need a new EIN if you: Change your name or location...")- Form SS-4: Use Form SS-4 or the online EIN Assistant. The SS-4 instructions and Form 8832/2553 (entity classification elections) are relevant where the LLC elects corporate or S-corp treatment.- Practical uses for EIN: bank accounts, payroll reporting (Form 941/940/W-2), issuing 1099s, federal excise reporting, and establishing business credit.

Banks typically require an EIN (or SSN for sole proprietors) plus formation documents and owner info to open business checking accounts.Representative state-specific highlights and obligations (CA, NY, TX, FL, IL)- California (FTB & SOS): California treats multi-member LLCs consistent with federal classification.

Key state obligations include the $800 annual minimum franchise tax, an additional LLC fee for higher revenues (thresholds and fee tiers), filing Form 568 (LLC Return of Income) and filing the Statement of Information with the Secretary of State on schedule.

California requires LLCs to register with SOS before applying for federal EIN to avoid delays. (FTB: "Every LLC that is doing business or organized in California must pay an annual tax of $800...")- New York: Multi-member LLCs will typically need to register for employer withholding and sales tax collection if they hire employees or make taxable sales in NY; LLC formation/filing is with the NY Department of State and tax registration is with NY Dept. of Taxation and Finance. (NY tax guidance: registration for withholding/sales tax is required for employers/vendors.)- Texas (Comptroller): Texas imposes a franchise tax on entities doing business in Texas; registration for sales tax permit and franchise tax account is required where applicable.

Texas franchise tax reports are due annually (May 15) and the comptroller provides online account management and filing. (Texas Comptroller: "The Texas franchise tax is a privilege tax... Annual Franchise Tax Reports due May 15.")- Florida: Florida Department of Revenue handles business tax registration (sales tax, reemployment/unemployment tax for employers).

Businesses hiring employees in Florida must register for reemployment tax and any applicable sales tax accounts. (Florida DOR: business registration and tax accounts.)- Illinois (IDOR): Register via MyTax Illinois to obtain an Illinois account for withholding, sales tax, and other obligations.

Illinois posts guidance and updates (e.g., sales tax and remote seller changes) and provides online account management tools. (IDOR: MyTax Illinois registration portal and business guidance.)State differences to highlight in content- Franchise/annual LLC taxes: e.g., California’s $800 minimum and tiered LLC fee vs.

Texas’s franchise tax; many states have annual reports/filings and franchise or privilege taxes with differing due dates and thresholds.- Employer registration: All states require employers to register for withholding and unemployment/reemployment accounts before payroll begins; the process and portals differ by state.- Sales tax registration: States require sales/use tax permits for taxable sales; thresholds and remote seller rules vary by state and have been been updated in recent years.- No state-level "EIN": EIN is federal only.

States use their own account numbers/IDs for withholding, sales tax, unemployment (state account numbers), and SOS business IDs.Practical checklist for a multi-member LLC (actionable steps to include in the blog)

Form the LLC with the state (Articles of Organization/Certificate of Formation) and file required state formation steps (SOS).

Obtain the EIN from the IRS (online SS-4 Assistant) — have formation date, responsible party SSN/ITIN, member info, and principal business address ready. 3. Determine federal tax classification (partnership by default for multi-member) and whether to elect corporate or S status (Form 8832 and/or Form 2553). 4. Register for federal employment tax accounts (if hiring) and prepare payroll setup (Form 941, Form 940, state withholding accounts).

Register with state tax agencies for withholding, unemployment/reemployment, sales tax permits, and franchise/LLC taxes as required by the state(s) where you do business.

Open a business bank account using EIN, formation documents, and owner IDs; bank checklists commonly require owner info and TINs for owners >10%. 7. File required returns annually (Form 1065, Schedule K-1, state returns, franchise/annual reports) and maintain records.

Know when to apply for a new EIN (structural changes) and when you can keep the same EIN.

Consider working with a CPA or business attorney for state nexus, multi-state apportionment, and payroll compliance.Common pitfalls and guidance for compliance-focused content- Waiting to get EIN before forming the LLC with the state can delay the online EIN application; IRS recommends forming the entity first. (IRS

"form your entity through your state before you apply for an EIN.")- Confusing federal EIN with state account numbers — emphasize that EIN is federal only; states issue separate account IDs. - Failing to register for state withholding or unemployment insurance before paying employees can lead to penalties. - Not accounting for franchise or LLC fees (e.g., CA $800 minimum) or for remote sales tax obligations.Sources used (authoritative excerpts collected): listed below with verbatim excerpts for verification and citation. These will support drafting the final blog content and newsletter.