ForumsStarting a Business

You don't need an EIN, and since a single member LLC is taxed as a pass-thru entity, having one (or not) won't affect your income taxes.

Having an EIN for the LLC does give the business its own identity, which is important (1) so you can start building credit for the business, and (2) so you don't have to give out your SSN for every business transaction that requires some type of tax ID number.

Does it protect your personal assets? Maybe in theory, but not really in practice. As a new business, you are going to have to personally guarantee almost any debt that's assumed by the LLC, so if the company doesn't pay, creditors can and will come after you personally. Also, as a single member LLC with no employees, anything the company ever does will, by default, be the result of a decision you made or an action you took -- so if something goes wrong and there's a lawsuit, it will name both you (personally) and the LLC as defendants, and if you lose, they'll get their money from whichever entity has it.

Hope that helps. Good luck.