Your IRA LLC has its own Employer Identification Number (EIN). Use it to identify the LLC as an entity when opening accounts or establishing vendor relationships. Do not use it to report income. That is the IRA's job.
The LLC is a single-member entity wholly owned by your IRA. For tax purposes, it is classified as a disregarded entity. This means the LLC has no independent tax liability. All income and tax obligations flow through to the LLC's sole owner, which is the IRA.
The LLC EIN exists to identify the entity in the world (with banks, financial institutions, and service providers). It communicates that the LLC is IRA-owned and confirms its legal existence as a separate entity.
Your EIN confirmation letter is included in your LLC documents and confirms the exact entity name as registered with the IRS.
The IRA is the taxpayer, not the LLC. When a counterparty needs to know who receives income (for purposes of a 1099, K-1, or other income reporting), use the IRA's tax ID, not the LLC EIN.
In most cases, the IRA uses your Social Security Number as its tax ID. If your IRA is expected to generate Unrelated Business Taxable Income (UBTI) and will need to file a Form 990-T, the IRA will need its own separate EIN. SDP does not obtain an IRA EIN by default, because the IRS discourages IRAs from obtaining an EIN unless they will actually file a return. Contact us if you need assistance with this.
Important: These are two distinct identifiers with distinct purposes. Using the LLC EIN where the IRA Tax ID is required, or vice versa, will cause income to be misreported.
When an investment sponsor, property manager, or other income-issuing party asks you to complete IRS Form W-9, the IRA is the taxpayer, not the LLC. The LLC is listed as the disregarded entity. Step-by-step instructions and field-level guidance are in How do I fill out IRS Form W-9 for an IRA LLC?.
Can I use the LLC EIN on IRS Form W-9?
No. The LLC EIN should not appear on Form W-9. The W-9 identifies the taxpayer receiving income, which is your IRA, not the LLC. Use your SSN (or IRA EIN if one has been obtained) in Part I of the form.
Does the LLC need to file a tax return?
No. The LLC is a disregarded entity and files no separate return. All tax activity flows to the IRA, which is generally tax-exempt. The IRA files a return (Form 990-T) only if it generates UBTI or UDFI above the $1,000 de minimis threshold.
Where do I find my LLC EIN confirmation?
The IRS mails Notice CP-575 as official confirmation of the LLC's EIN. Expect it within 10 to 14 days of filing. In the meantime, we include a temporary confirmation from the filing process that most banks and institutions will accept. Do not lose the CP-575 when it arrives. Obtaining a replacement is a difficult and time-consuming process.
How does the IRS know income belongs to my IRA if I use my SSN?
The IRS distinguishes between you as an individual and you as an IRA account holder. Jane Anderson reporting under SSN 111-22-3333 is a different taxpayer in IRS records than Jane Anderson IRA reporting under the same SSN. As long as the IRA name is used correctly on the W-9 and income documents, the IRS treats the income as belonging to the tax-exempt IRA, not to you personally.
Does my IRA already have an EIN?
Not by default. In most cases your IRA uses your SSN. If you anticipate UBIT exposure and need a separate IRA EIN, contact us before applying for an EIN. The IRS requires a specific application process for IRAs.
This information is provided for educational purposes only and should not be interpreted as tax, legal, or investment advice. Readers are encouraged to consult a qualified professional who can offer guidance based on their personal situation.