EIN Responsible Party for an LLC

Home » EIN Responsible Party for an LLC

What is an EIN Responsible Party?

The EIN Responsible Party (aka IRS Responsible Party) is the “contact person”.

Meaning, questions and notices from the IRS will be mailed to this person.

Said another way, the IRS either provides information or requests information from the Responsible Party.

Note: The IRS only communicates via mail. They won’t call or email you. If you get an email or phone call from the “IRS”, it’s a scam.

The IRS’s definition is kind of confusing

The “responsible party” is the person who ultimately owns or controls the entity, or who exercises ultimate effective control over the entity.

The person identified as the responsible party should have a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the person, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.

Source: Instructions for Form SS-4 (see “Responsible party defined”).

Again, it’s easiest to think of the EIN Responsible Party as just your LLC’s “contact person”.

Who can be the EIN Responsible Party for an LLC?

The EIN Responsible Party for an LLC must be an LLC Member (owner).

  • In a Single-Member LLC, the EIN Responsible Party must be the sole LLC Member.
  • In a Multi-Member LLC, the EIN Responsible Party must be one of the LLC Members. Although any LLC Member can be listed, the person listed will take on the responsibility of making sure the LLC’s taxes are handled properly.
  • For an LLC owned by another LLC (or another entity), you should list the owner of the parent company.

The EIN Responsible Party can’t be an entity (company)

The IRS made changes to the EIN Application in 2018.

The EIN Responsible Party must now be an individual person. It can’t be a entity (company).

To quote the IRS definition:

Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.

Who can be the Responsible Party for an LLC owned by another LLC?

If you have one LLC (the “Child”) that is owned by another LLC (the “Parent”):

  • you can’t list the Parent LLC as the Responsible Party for the Child LLC; and
  • you can’t list the Parent LLC’s EIN on the new Child LLC’s EIN Application

This used to be allowed, but the IRS stopped allowing it in 2018.

Unless the LLC obtaining the EIN is a government entity (which will not be the case for 99% of our readers), the EIN Responsible Party must be a natural person. This means the Responsible Party must be an individual and can’t be a company.

Again, even though the LLC applying for a new EIN is owned by another LLC, you’ll need to list an individual person as the EIN Responsible Party. So in this case, you should just list one of the owners (Members) of the Parent LLC.

Who can be the Responsible Party for an LLC if the Member is a Trust?

If an LLC is owned by a Trust or multiple Trusts (said another way: If a Trust is an LLC Member), then it depends on if the Grantor is alive.

Note: A Grantor is also referred to as a Settlor, Trustor, or Trust Owner. They are all the same thing; the person(s) who established the Trust.

If the Grantor is alive, then they can be the EIN Responsible Party for the LLC. If there are multiple Grantors, you can just pick someone. There is no requirement to pick one Grantor over another.

If the Grantor(s) is/are deceased, then a Trustee (or Successor Trustee if the Trustee is deceased) can be the EIN Responsible Party for the LLC.

Can the Responsible Party be an LLC Manager?

If your LLC is Manager-Managed, it depends on whether or not the Manager is also a Member.

  • If your LLC Manager is NOT a Member of your LLC, then they can’t be the Responsible Party.
  • If your LLC Manager is ALSO a Member of your LLC, then they can be the Responsible Party. Just list them (or any other LLC Member) as a “Member” when filing the application for the Responsible Party

If your LLC is Member-Managed, you don’t need to worry about this. Just list an LLC Member as the Responsible Party.

Related article: Member-managed LLC vs Manager-managed LLC

Only 1 Responsible Party is needed

The IRS only needs one (1) Responsible Party on file for your LLC’s EIN.

If your LLC is a Multi-Member LLC, the IRS doesn’t need the contact information of all the LLC Members. They just want one Responsible Party on file with the EIN.

The other LLC Members will be listed in your LLC Operating Agreement.

The EIN Responsible Party is not personally liable for IRS tax debt

A lot of readers wonder if listing themselves as the EIN Responsible Party will automatically make them personally liable if the LLC defaults, avoids, or evades taxes with the IRS by the fault of another LLC Member (in a Multi-Member LLC).

Just being listed as the EIN Responsible Party doesn’t automatically make you personally liable for the LLC’s IRS tax debts.

However, that doesn’t mean you won’t receive letters from the IRS and have to present yourself in tax court (in more serious circumstances) in order for it to become a fact that you are not personally “responsible” (personally liable) for the LLC’s tax debt.

The following two terms have different meanings:

  • EIN Responsible Party
  • “responsible” person

In tax court, it could be determined that the person listed as the EIN Responsible Party is not actually personally “responsible” for the LLC’s tax debt (if another Member knowingly lied or avoided paying/filing LLC taxes with the IRS).

Again, the easiest way to think of the EIN Responsible Party is it’s the “contact person” between the LLC and the IRS.

In a Multi-Member LLC, the person listed as the EIN Responsible Party should be the one willing to take on the role/responsibility of making sure all taxes are filed correctly and paid on time.

In a Single-Member LLC, as the owner, you must be the EIN Responsible Party. And just like in a Multi-Member LLC, you are not automatically personally liable for your LLC’s tax debts, however, if you knowingly lie or avoid paying/filing taxes with the IRS, then the IRS will go after you personally.

How to update/change the EIN Responsible Party for an LLC

To change the EIN Responsible Party for your LLC, you need to file Form 8822-B with the IRS.

Download Form 8822-B:

Form 8822-B

Leave Boxes 1-3 unchecked and then enter your LLC name and EIN on lines #4a and #4b. Then leave #5, #6, and #7 blank.

Enter the Responsible Party’s name in #8 and their SSN or ITIN in #9.

In the “Signature” section, enter the Responsible Party’s phone number. This can be a cell, home, or office number. Then have the Responsible Party sign and enter today’s date.

For title:

  • Use “Owner” if you have a Single-Member LLC taxed as a Sole Proprietorship
  • Use “Partner” if you have a Multi-Member LLC taxed as a Partnership
  • Use your officer title if you have an LLC taxed as a C-Corporation or S-Corporation

8822-B Mailing Address:

Please refer to page 1 of Form 8822-B to determine where to mail the form to the IRS.

Matt Horwitz
Matt Horwitz
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.

Want our free email course?

Get simple LLC lessons sent right to your inbox.

Thanks! You're subscribed √
Your email address is already subscribed.

83 comments on “EIN Responsible Party for LLC”

Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

  1. Thanks for posting this info Matt. I had a question regarding the EIN application regarding an LLC forming another single member LLC. Reading through the posts, I was able to get my answer. I completed the application correctly, although based on the replies it is confusing to be listed on the EIN Confirmation letter as SOLE MBR and the Parent LLC nowhere on the form at all. The responses made me feel more at ease. Thanks again!

    • Hey Resha, I hear you lol! I still can’t believe the IRS hasn’t done something to fix how confusing it is to see “SOLE MBR” for an LLC owned by another LLC. But yes, you’re all good, and that’s totally normal.

    • Hi Sara, yes, you’ll receive back a confirmation in the mail. The IRS is still a bit backed up, so that can take a few weeks to a couple months.

  2. Hi, I formed an LLC for my self-directed IRA. The sole member is the IRA account, and my husband is manager (not a member). For tax reasons, I am neither a member nor a manager. On the application where it asks for the responsible party, would I use my husband’s information since he is the manager?

    • Hi Carrie, we don’t do a ton with self-directed IRAs owned by LLCs, so I’m actually not sure on the answer. Did the IRA custodian have a specific request or recommendation?

      • They won’t give me tax advice and I am waiting to hear back from my CPA

        • I see. Sometimes custodians have specific requests. Feel free to keep me posted on what you hear from your CPA. I’m curious.

  3. Hi,
    This article is super useful! Thanks for publishing it.

    I think my question was answered already but I want to be 100% sure:
    I have a ParentLLC which is the single member of my ChildLLC (I am the single member of the ParentLLC).
    During the EIN application for the ChildLLC, when asked:
    * I am one of the owners, members, or the managing member of this LLC.
    * I am a third party applying for an EIN on behalf of this LLC.

    Should I answer that I’m the owner or a third party (as I’m not personally a member of the ChildLLC)?


    • Hi Tzvi, the IRS still hasn’t updated their interface (in years lol!) to account for this. No, you should select “I am one of the owners, members, or the managing member of this LLC.” Hope that helps.

  4. ZAEEM is written instead of AZEEM in CP 575 as sole MBR. How this can changed.

  5. Thanks for the time you sacrifice in putting out this highly resourceful and helpful service. I need some clarity. Myself and my partner just acquired 100% stake in a 3 member LLC. The articles of organization and operation agreement have been amended and our names have replaced the names of the previous members/owners. We have decided to retain the name of the company and we just filed Form 8822-B with the IRS which we learnt takes about 4-6 weeks to be processed. We have decided to open a new business account which will make continuing the business much more easier for us. My question is since none of the new owners personal information is yet to be on file with IRS as the EIN-Responsible Party, will that affect our chances of successfully opening a new business bank account in the details of the LLC but with the new owners personal details as amended.

    • Hi Paul, thank you so much! Yes, the bank will want to see an updated letter from the IRS. You can obtain a 147C EIN Verification Letter. They may also want to see the amended Operating Agreement and possibly any transfer of LLC Membership Interest (via a Sale of LLC Membership Interest form). I recommend calling the bank and speaking to the branch manager. And then emailing over your docs for review before visiting. Hope that helps!

  6. Hi Matt, glad I ran across this article. I’m trying to get the EIN for a new LLC, owned by my current employer, a corporation, as the sole member. For the Responsible party, if I insert myself, like you said, I’m just a contact? It won’t affect my own taxes or anything personal right, even though it still puts me as “sole member” at the confirmation page.

    • This gets a bit gray and could cause confusion. I also wouldn’t recommend this. It’s best to have an owner of the parent Corporation be the EIN Responsible Party.

  7. Hello Matt,
    I am very glad I found you because I’m preparing for a LLC as Manager-Member or Member-Manager. 1. (which phrase is the correct one, Matt?).
    2. As a U.S. Citizen, is it true that I must use my SSN # in order to request a EIN for a LLC?
    3. Is requesting as a natural person good enough without having to use your personal SSN sufficient when requesting for a EIN as the responsible person?
    4. If I use a Wyoming Register Agent for a LLC. If I reside in California. What’s else needed to conduct business in California?
    5. The annual cost of an LLC is approximately $800.00. Question 5. Am I still required to pay the annual California fee if I am a Wyoming LLC?
    Can I still have a Business checking account in California or do I have to have a Wyoming Business checking account for example?
    6. Can a Wyoming LLC be a benficiary to a California personal property trust for a Business Checking acount that serve as Trustee of a Variety of Managers and Trustees?
    Thank you for your Answers.
    Best regards,

    • Hey Arthur,

      1. Both are correct terms that mean different things. Check out Member managed vs Manager managed LLC to learn more.
      2. Yes, correct.
      3. No, you’ll need to use your SSN.
      4. If you’re forming an LLC in Wyoming LLC, but that LLC is doing business in California, you’ll need to register your Wyoming LLC as a Foreign LLC in California.
      5. If your Wyoming LLC is doing business in California, yes, you’ll need to pay the $800 California LLC Annual Fee every year, file Form 568 (LLC Return of Income), and any other required California Franchise Tax Board filings. We recommend working with an accountant for these.
      5a. You’ll want to call a few banks and check (it depends). However, I know Wells Fargo can open a bank account in California for an out-of-state LLC.
      6. I recommend double checking with an estate planning attorney, but generally speaking, yes, LLCs can be beneficiaries of a trust.

  8. Hi Matt,

    Thank you so much for all you help and efforts. It is highly appreciated by many like myself.

    My partner (has a green card and an SSN) and I (a foreigner) are forming a Multi-Member LLC in MA. Due to COVID, EIN applications by foreigners are taking quite a time. So, I was wondering, if he were to apply for the EIN online, is there a requirement on the percentage of his part in our LLC?

    Thank you :)

    • Hi Melo, I apologize for our slow reply. No, there is no percentage requirement. Just one person is needed for the EIN Responsible Party, so your partner can be the EIN Responsible Party if they’d like.

  9. Hi Matt,

    First, I want to thank you for your informative website, and giving answers for many concerns. My question is, if a third party designee applied for the EIN on behalf of me ( because no SSN/ITIN), is it normal to receive the mail from the IRS with the EIN, my address, DESIGINEE NAME SOLE MBR, instead of my name as an only owner !?
    Note: My name is not mentioned at all on the notice letter

      • Hola, esto me inquita, porque ella esta diciendo que no tienen SSN ni ITIN por lo tanto tuvo que usar un tercero designado para obtener el EIN por lo tanto ella no va a aparecer en ningun lado de la confirmacion del EIN number.
        Me corriges por favor si estoy mal.
        Hago esta pregunta porque tengo un cliente que quiere sacar una LLC pero no tien SSN asi que quiere asignar a su hija con SSN para sacar el EIN number, sin embargo cuando hacemos el proceso de EIN no hay manera de poner al dueno de la empresa como figurante en la carta de confirmacion del EIN ya que no tienen SSN. la UNICA que sale es la hija como MBR.


        • Hola Diana, solo porque alguien no tenga un SSN o ITIN, no significa que no pueda ser la EIN Responsible Party. De hecho, si alguien sin un SSN o ITIN solicita un EIN, esa persona será la EIN Responsible Party. Por favor, consulte EIN sin SSN o ITIN para obtener más información.

  10. Hi Matt,

    I have a couple of questions.

    Question 1: Do I need to obtain a New EIN going from multiple-member LLC to one member LLC? Member one that is the responsible party decided to leave the LLC, and now it will be only one member(me).

    Question 2: I just found out I had 60 days to mail form 8822-b to change the responsible party. What is the penalty for filling form 8822-b after the 60 days?

    Thank you,


    • Hi Barbara, no, the LLC doesn’t need a new EIN if the LLC is changing from Multi-Member LLC to Single-Member LLC. The IRS just has the authority to impose a penalty, but they rarely do. You can just file the 8822-B. I wouldn’t worry about it :) I hope that helps.

      • Similar question – going from multi member to single member but the reason is because we started a new holding owning xxx company for being the parent of this older llc so the older llc would now be a disregarded llc instead of a partnership. Does it need a new ein for change in ownership as it is now technically owned by a new llc entity instead of individuals and even though the new parent has same partners as this older now child llc? Or does just need to file 8822?

        • Hi Sara, no, the LLC doesn’t need a new EIN. An EIN follows the entity. And you actually don’t need to file Form 8832. The LLC automatically defaults from the partnership classification to disregarded entity the moment the LLC ownership switches. Just file – or have an account – file the appropriate returns.

          • Awesome … so just to confirm in this situation there is no new ein or 8822 or 8832 needed? I didnt want the child llc ein flagged as not filing the partnership return since its part of the new parent llc. Really appreciate your help.

            • Correct, you don’t need a new EIN and you don’t need to file Form 8832. Form 8822-B is filed if you need to change the EIN Responsible Party and/or the mailing address. You will need to file a final Partnership Return though.

  11. Hi Matt,

    For foreign members (owners) of a Texas filed LLC, obtaining an EIN is only possible through fax. According to IRS this is taking at least 45 business days. They can’t provide it by phone, nor online. 45 business days is a big killer considering not being able to do business within 2 months. Is there any other way to cut down times? Adding a member with SSN? Filing for an ITIN takes 7 weeks. Looking for some altarnatives.

    • Hi Carlos, there are no alternatives. Form SS-4 needs to be mailed or faxed by non-US residents that don’t have an SSN or ITIN. The IRS is delayed due to the current situation. Unfortunately, there are no other filing methods.

  12. Is the Responsible Party eligible to receive an EIN if he has not filed personal fed income taxes?

    • Hi CB, yes, a person can be the EIN Responsible Party for an LLC even if they haven’t filed personal federal income taxes.

  13. Client owns Texas sole member LLC that is being run by her son. She wants to gift the business to her son. He will run it under the same name. Will IRS form 8822-B be enough or will he need a new EIN when he becomes the sole member of this LLC?

    • Hi Rebecca, if the EIN was properly obtained – (meaning the LLC acquired the EIN and not your client individually) – then yes, just changing the EIN Responsible Party (via Form 8822-B) is all that is needed. The LLC doesn’t need a new EIN. Said another way, the EIN stays the same because the legal entity stays the same. Hope that helps.

  14. Hi Matt, thank you very much for all the information you have on your page. It is by far the most transparent and honest source of information we have found.

    We have a couple of questions regarding the responsible party.

    Can the responsible partner be a foreigner non resident of the US? Does the responsible party must have an address in the US? would a virtual business address be enough?

    Thank you in advance

    • Hi Jose, you’re very welcome. And thank you very much :) Yes, the EIN Responsible Party can be a non-US resident. No, the address used for the EIN Responsible Party doesn’t have to be in the US. It can be located anywhere in the world. Yes, a virtual business address is fine as the IRS only treats the EIN Responsible Party’s address as a “mailing address” anyway. Below are instructions you may find helpful.

      If you have not yet filed an EIN application for your LLC (for a non-US resident), we have instructions here:
      How a non-US resident can get an EIN for a US LLC

      If there is already an EIN issued to your LLC and you want to change the EIN Responsible Party to a non-US resident, we have instructions here:
      How to change the EIN Responsible Party for an LLC

  15. I have a single member llc with its own EIN that is now a disregarded entity in a C-Corp. The C-Corp has a different EIN. Originally, I was listed as responsible party of the LLC.
    Once the C-Corp was set up a couple of years later, the C-corp minutes reflect my interest in LLC as transferred to C-Corp. As of 2019, all LLC activity is reported as part of the C-Corp.
    Does any change need to be made with the IRS for the Responsible Party? Based on the 2018 changes the C-Corp is not allowed to be the responsible party. I am also the responsible party for the C-Corp.

    • Hi Mary, you are correct. The IRS no longer allows for a business entity to be an EIN Responsible Party. You, or anyone authorized by the Corporation, can be the EIN Responsible Party for the LLC (which is owned by the Corporation). Hope that helps.

  16. Hi Matt,

    Thanks for the information you provide in this article. It is very informative and very helpful.

    My question is about multiple EINs. Is it true that I can only be the responsible party for one EIN application? I have multiple LLCs for which I am the manager, but I receive an error when I request an EIN for my second LLC. Both LLCs are solely owned by a trust; both are managed by me. If I can only be the responsible party for one EIN, how do I get an EIN for the second?


    • Hi Jason, you’re very welcome. You can be the Responsible Party on as many EIN applications as you’d like… but you can only submit one EIN application per Responsible Party per 24 hours. So you just need to space them out, timing wise. Apologies for the slow reply. Hope that helps.

  17. What if the member/owner/responsible party is not a USA citizen and does not have a social security number? Thanks.

  18. Hi Matt, first of all thanks for an amazing platform regarding LLC and EIN. I have learnt a lot from here than i could have ever through an attorney even after paying them.

    My query is that we are a 3 member foreign LLC. We are now applying for the EIN and would like to know that if the responsible party is the other member would i be able to get a business credit card approved under my name for business or would it have to be the guy who is the responsible party?

    • Hey Burke, thank you for the kind words :) Glad you are finding the website helpful! No, you don’t have to be the LLC’s EIN Responsible Party to get a credit card for your LLC. Any LLC Member can apply for a business credit card (unless they were restricted via the Operating Agreement… but that would be rare). Hope that helps!

  19. Will the person with the EIN number be shown as the owner of the LLC or can they be just a Manager of the LLC? When filing as a multi-member LLC do the Managers appear as owners of the LLC?

  20. Hi,
    Thanks for all of the great info!
    I just want to clarify the EIN/SSN responsible party for a child LLC:
    I need to list my SSN on the child LLC’s EIN application, even though the owner is the parent LLC and and has its own EIN?
    Thanks for your help!

    • Hey JJ, as per the IRS’ new rules, that’s what they’re wanting. I hear you though… a bit confusing.

  21. Hi!

    I am currently apart of a multi-member LLC. I act as the EIN Responsible party. I sign all the contracts and handle all the filings. The company address is also my home address. Does that make my property liable in any tax implication ? Can I change the company address to a PO box instead?

    Also,, we are considering changing the business structure to a Manager Member mIx (a few full time, a couple passive and a couple external). Do you happen to have annoperating agreement template?

    Lastly, have you ever heard of a multi-member LLC with no CEO? Is that possible? Is it recommended or not?

    Thank you!

    • Hi Danielle, no, your property is not owned by the LLC. Regarding the address change, it depends on the state, however, most states don’t allow a PO Box for the Registered Agent. A few allow a PO Box for the Principal Office Address (or similar address). However, you could look into a mailbox rental as an alternative. Most of the time that can be used for your LLC’s address with the state as well as with the IRS. You can find Operating Agreement templates by clicking on your state from our home page and then selecting the Operating Agreement lesson. Although the title CEO can be used in an LLC, it’s more common to use the title Managers, Managing Members, and/or Members to distinguish roles. Hope that helps.

  22. Hi Matt,

    Is possible the responsible party be a sole proprietorship with EIN?

    • Hi Wallace, our research findings indicate that the IRS now wants the Responsible Party to be an individual using an SSN or ITIN. Hope that helps.

  23. For the past 2 years I have operated a sole proprietorship with a properly issued EIN … for business reasons (taking on a partner and maybe 2) I want to form an LLC here in Massachusetts… do I have to apply for a new EIN or can I simply use my existing EIN as I would be the manager/member of the LLC I plan to form ??
    Thanks for your help


  24. hey matt,
    im forming an LLC with another partner and im wondering, if i am the “responsible party” for the ein number and something is wrong with the taxes or so ever, am i the only one who is in trouble or my partner too?

    • Hi Jessica, it’s the entity who is on the hook with the IRS, not the Responsible Party, however, mail and correspondence will be sent to the Responsible Party if there are issues. And if it really got down to it, all LLC Members would be disclosed in tax court and then the real “responsible” person would be identified. Hope that helps.

  25. Hi Matt,
    Thanks for sharing very informative article. I have a question.
    I have an Wyoming LLC registered. We are 2 partners in the LLC. One partner is an overseas citizen and does not have SSN or ITIN. I have filed for the EIN as me as a responsible party for the LLC.

    Now we want to open another LLC as operating company. This new company will be responsible to do all business activities, signing all agreements with our overseas customers in africa.
    Need advice and guidance:-
    1.) How and where to form this company
    2.) In this company me and my overseas partner will be the only 2 members
    3.) I need to make sure the structure we form for this company is correct as my overseas partner will apply for investment based immigration after approx 6 months.
    Any help is really appreciated. Thanks Vinnie

    • Hi Vinnie, you’re very welcome. This is too complex of a situation for us to get involved with. You’ll need to hire or speak with someone else for assistance, especially #3 – you’ll want to speak with an immigration attorney. Thank you for understanding.

  26. thank you Matt,
    so the part that says: “Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.” does not mean that it has to be an individual?

    this part is in the most current instructions and was not in the previous one so I wonder if they changed how it works now.

    I hope you are correct, because I want to make sure that I can just move my profits from LLC 2 into LLC 1 for tax purposes and file as an s-corp under LLC-1.

    thank you again

    • Hi Peter, yes, as of 2018, the Responsible Party must be an individual. We’ve updated the lesson to reflect the new changes. Having the Responsible Party be an individual (in this case, you) doesn’t affect the taxation of the child/subsidiary LLC. You’re still allowed to report it’s profits/losses along with the parent LLC in your tax return. We recommend working with an accountant to make sure all returns are filed properly. Hope that helps.

      • How should this be answered then?
        – I am one of the owners, members, or the managing member of this LLC.
        – I am a third party applying for an EIN on behalf of this LLC.

        Thank you!

        • I chose “I am one of the owners, members, or the managing member of this LLC.” and “JASON {LAST NAME} SOLE MBR” is listed at the top of my EIN. Is this ok? Thanks

        • Hi Jason, if you are the the Member (owner) of the LLC, then you would select “I am one of the owners, members, or the managing member of this LLC”. Hope that helps.

          • “I am one of the owners, members, or the managing member of this LLC” is ok when the sole member is another LLC but I’m the responsible party? Sorry, I should have made that more clear. Thank you

            • Hey Jason, yea, I understand the confusion lol. It’s not really significant. Here’s what going on. The IRS rolled out new rules and it’s quite an undertaking for them. And many connected parts to those changes aren’t fixed for some time… like the confusion of being called a “SOLE MBR” of an LLC that you don’t own, but rather, your other LLC owns. However, if you have to call the IRS, they want to hear the word “owner” (or “partner” in a Multi-Member LLC). Once they hear that word, they’ll discuss the account with you. So just think of it as loose term, something like an indirect owner. The IRS isn’t too concerned about the “chain of command” (what company own what company), they just want to deal with the owner of it all, as in the final person. That’s my best interpretation for now, but hope that helps.

  27. I formed a single member LLC (LLC 2) for which my other LLC (LLC 1) is the only member. can LLC 1 be a responsible party with it’s EIN when applying for LLC 2’s EIN number online?

    I did just that and when I click submit at the end of application it keeps telling me that they were unable to complete my application and that I should try again in few minutes.

    from instructions it seems that only an individual can be a responsible party. here is portion from most current instructions (REV. 12-2017):
    “Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.”

    what is the right way to proceed with my EIN application?
    thank you

    • Hey Peter, you are correct. Effective 2018, the EIN Responsible Party can no longer be an entity, it must be an individual. We’ve update this lesson to reflect these changes. The correct way to proceed is to list yourself as the Responsible Party, even though the LLC is owned by your other LLC. The profits/losses of the child/subsidiary LLC will still flow up to the parent and I recommend working with an accountant to file your returns properly. Hope that helps.

  28. Can the general public look up and find out who is listed as the responsible party for an LLC? Is the responsible party public information? Thanks.

    • Hi Dan, no, they cannot. The Responsible Party is private information kept on file with the IRS.

Leave a comment or question

Comments are temporarily disabled.