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  • I am a business lawyer in New York City. My passion lies in exploring legal and non-legal aspects of the growing online business and social world. E-mail me: iblog(at)ratschko(dot)com.

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Do I need a Federal ID Number for My Sole Member LLC?

No, for federal income tax purposes a sole member LLC is normally considered a "disregarded entity."  Unless you hire employees, you can use your social security number for all purposes.

However, for security reasons, you may want to get Federal Tax Identification Number (also known as Employer Identification Number or Employer ID Number) in order to reduce the number of people who have access to your social security number.  In addition, it is a good idea to keep the LLC's business strictly separate from your personal affairs in order to protect the LLC's limited liability shield.  Having your SSN on all of your LLC's bank accounts and other documents could give the impression that your personal affairs and your business are not separate.

You can get your Federal Tax Identification Number and more information here.

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  • I publish this small business law blog to educate small businesses and their owners about relevant New York law. I am not conveying any legal, accounting, tax, or other professional advice and your use of this small business law blog does not create an attorney-client relationship between you and me. THE CONTENT OF THIS BLOG SHOULD NOT BE RELIED UPON OR USED AS A SUBSTITUTE FOR PERSONAL CONSULTATION WITH A LICENSED SMALL BUSINESS ATTORNEY. THIS MAY BE ATTORNEY ADVERTISING.