I formed a LLC in Delaware and am planning on working as an IC in another state. I will earn no income in the state of Delaware. I have a foreign qualification for my LLC in the other state.
Can I have a single EIN for my business? Or do I need one for each state?August 21, 2019 at 11:41 am MST #240399DavidGlennCPAParticipantStatus: AccountantPosts: 60Joined: 06/12/2019
An EIN, or Employer Identification Number, is issued by the IRS. You only have one EIN for your business.
States will often assign their own ID numbers to businesses in addition to the IRS issued EIN. It’s almost always tied to a specific state level tax they have.
The other state you’re working in might require your LLC to obtain its own unique state ID number. This will depend on the rules of the state and how your LLC is taxed. If you’re being taxed as a sole proprietor there’s usually no need to get a separate number. But if you’re taxed as an S-corporation then it’s more likely the state will require you to register for your own ID number.
Here in Hawaii, if your LLC is taxed as an S-corporation you’d need the following numbers –
State withholding number
State unemployment tax account number
General excise tax account number
David Glenn, CPA | Glenn Advisory
https://www.taxcpafordoctors.com | (808) 321-5664
Thank you! Makes sense, since the IRS is a part of the Fed. Gov’t.August 21, 2019 at 3:09 pm MST #240497jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 8141Joined: 01/09/2016
Only 1 addendum to @davidglenncpa ‘s excellent response, and this is more for other readers who may wonder about the benefits of a DE corp/LLC. For the typical small business, there are no advantages to setting up an entity in DE. In some cases, it actually complicates your filing requirements. However, there is a cottage industry promoting the benefits of Delaware filings, which charge a tidy sum for helping small businesses navigate the (relatively simple) process.
DE corps/LLCs can benefit very large and complex business organizations (think publicly traded) but there is no special benefit for the typical small business. Of course, they have been promoted as a secret to abundant tax benefit for startup businesses, so whether to file in DE is a relatively common question.