A LLC can offer certain tax advantages over a corporation, including the availability of more deductions. Additionally, a LLC is not required to be a separate tax entity like a corporation; instead it can be a “pass-through entity” so that the LLC owners report business losses or profits on their personal tax returns, like a partnership.
Federal Tax Identification Number
Your LLC may need to obtain a federal tax identification number (also known as an employment identification number/EIN), which is similar to an individual’s social security number. If you elect corporate status for your LLC then an EIN number is required. However, if you make no such election, and conduct your LLC similar to a sole proprietorship or partnership, then a separate EIN number is not required.
Generally, you will not need a separate EIN number for your LLC as long as you are the sole owner and the LLC has no employees. However, if you are not the sole owner of the LLC or if the LLC has employees, your LLC will need a separate EIN number to open a bank account and for certain tax filing requirements. United Agent Services can prepare your Federal Tax ID Application if you have not already done so.
Filings must be made with the Secretary of State along with the appropriate filing fee. When appropriate, a check must accompany the document payable to the State of Wisconsin, covering all charges for the Secretary of State.