I have an EIN but never used it. should I file my returns?

Forum|Forum|7 years ago
May 29, 2019
3 replies
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ms-k-dansby

Level 2

If you have taxable income then yes and use your EIN if it is for self employment.

djamil

Level 2

But if there are no incomes and expenses , is it necessary to report that to the IRS ,?

Rainman12

Alumni - Champ

No, you do Not have to report anything for an EIN with no associated activity.

Carl

Level 11

An EIN (Employer Identification Number) is issued only by the IRS. It is issued to a non-breathing non-living taxable entity such as a business, an estate or a trust. If the non-living non-breathing entity is a business and that business was "OPEN FOR BUSINESS" at any time during the tax year, then that business *MAY* be required to file a tax return. Then again, it may not. But it depends on what type of business entity that EIN was issued for, as well as it's registration status with whatever state the business is licensed in. A single member LLC? A multi-member LLC? An S-Corp? A Corp? Maybe a Partnership?

jwhi096

Level 2

Question: I just obtained an EIN thinking I’d need one to open a business bank account but I found out that I don’t. I’m a single member LLC, “disregarded entity,” can I file a 1040 using my social or am I required to use my EIN now that I have one?

DoninGA

Level 15

@jwhi096 wrote:

Question: I just obtained an EIN thinking I’d need one to open a business bank account but I found out that I don’t. I’m a single member LLC, “disregarded entity,” can I file a 1040 using my social or am I required to use my EIN now that I have one?

Since you are a single member LLC filing a Schedule C for your income and expenses you can use your SSN.

pk_

Level 15

@jwhi096 agreeing whole heartedly with my colleague @DoninGA , I would still like to my two cents:

(a) EIN is a Business identification ( Employer's Identification Number ) and used for depositing withholding taxes of employees.

(b) An LLC with a single member ownership criteria is a "dis-regarded entity" ONLY for tax purposes. The protective veil that you get by using the LLC business name is significantly weakened if you use your own SSN for business purposes.

(c) Generally you should use a separate bank account with entity name and use this for all business purposes --- you do not want to co-mingle your own personal monies with the business and this is best done with a separate account.

Clearly this means more paperwork, but in case of an audit or "other exigencies" this will stand you in good stead.