If I transfer my LLC into a trust do I need another EIN?
24
9
The LLC’s EIN is still needed—it’s the LLC’s number. Each entity (LLC and trust) needs its own EIN. That separation creates the two layers between the entities.
Upvote if this is a clear answer
Downvote if this is not a clear answer
Create DocumentFull Conversation
Good afternoon, if I create a trust do I have to go to the IRS and get a trust number instead of using the EIN after the trust has ownership of the LLC?
Good afternoon! Have you already created the trust?
I’m in the process.
Are you looking to transfer ownership of an LLC to this trust?
Yes, I am.
Is there anything else the lawyer should know before I connect you?
No, that’s all.
Hi there! My name is Liz and I’ve been an attorney for more than a decade, and I am here to assist with your legal concerns. So I can best help—does the trust have its own EIN, or does the LLC only have an EIN?
The LLC only has an EIN.
Thank you for clarifying. A trust does require its own EIN because each entity has its own tax liability. Would you be the grantor or the trustee?
Is it possible to be both? I want my trust to own 100% of my LLC and I just want to manage it.
You can indeed be both—it just has to be clear in the trust document. The trust can own the LLC.
After I get the EIN I can then go to the bank to open an account, correct? I believe they ask for my Social, but I don’t want any connections.
That’s correct. The trust’s EIN will function much the same way as your Social, but it’s tied to the trust.
And I can throw away the one I have now, right? Or will I need to use it for anything?
The LLC’s EIN is still needed—it’s the LLC’s number. Each entity (LLC and trust) needs its own EIN. That separation creates the two layers between the entities.
Is there a way I can set up a payment plan with you so when I do need lawyer services I’ll already have a balance? Or how can I use you for future services?
My apologies—we can’t be hired here. But your state bar may have a referral service for local attorneys.
Ahh, got it. Thank you so much for your help. Is there a specific way to type up the trust document?
You’re very welcome. You can use templates, or have a lawyer draft the trust for you.
One more question—once the trust is established, I have to edit my operating agreement, correct? In what part do I put that the trust owns 100% of the LLC?
Yes—the trust agreement would state it owns the LLC. Then, in the operating agreement under “members,” the trust would be listed as the 100% ownership member.
You’re the bomb, Elizabeth. Thank you—have a beautiful rest of your day.
You too!
