Legal Question in Business Law in New Jersey

Re: LLC and Employer Identification Number

One-man LLCs are approved for NJ. As a one-man LLC, rather than file Form 1065, you report income and expenses on Schedule "C" to your individual tax return, showing the business name as the LLC. You only need a tax ID number if you have employees and pay salaries (you need the ID number for tax deposit purposes). I suggest getting a tax ID number for several reasons. If you use the tax ID number in conjunction with the LLC, people who pay you need not give you a Form 1099 at year end. Under an individual SS# they may be required to do so. If you deal with small businesses or individuals, this could be burdensome. Also, while the LLC gives you some liability protection, using your SS# may cause confusion and expose you to being named individually in any litigation involving the business, even if defensible because you operate as a LLC. Since the obtaining of a tax ID# is simple (you can apply for it at the IRS website) I suggest you get it.

Re: LLC and Employer Identification Number

You should obtain a separate EIN for your single-member LLC. Having separate ID numbers helps to draw a clear cut line between your personal and LLC activites, and yes, helps reduce the risk of incurring personal liability.

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