When you apply for an Employer Identification Number (EIN) for your Michigan LLC on the IRS website, the “Responsible Party” section is the most important part for linking it to your Wyoming Statutory Trust (WST).
Because a Statutory Trust is a legal entity, the process is slightly different than if you were a simple individual owner.
1. Determining the “Responsible Party”
The IRS defines the Responsible Party as the individual or entity that controls, manages, or directs the applicant entity and the disposition of its funds and assets.
- If the Trust is the Owner: The “Responsible Party” is technically the Trust.
- The Individual Link: However, the IRS online system usually requires a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for the human representing that entity.
2. The IRS Online Application Steps
When you go to the IRS EIN Assistant:
- Select Entity Type: Choose Limited Liability Company (LLC).
- Number of Members: Enter 1 (since the Wyoming Trust is the sole owner).
- State/Territory: Select Michigan.
- Reason for Applying: Choose “Started a new business” or “Banking purposes.”
- Who is the Responsible Party? * Select “Individual” (this will be you, the Trustee).
- Note: Even though the Trust owns the LLC, the IRS wants a human “point of contact” for their records.
- Owner Disclosure: When it asks if the LLC is owned by another entity, you will say Yes, and then provide the name and EIN of your Wyoming Statutory Trust.
3. Tax Classification (The “Disregarded Entity”)
Because your Michigan LLC has only one owner (the Trust), the IRS will automatically treat it as a “Disregarded Entity” for federal tax purposes.
- What this means: The LLC does not file its own separate tax return.
- The Flow: All income and expenses from the Michigan LLC are reported on the tax return of the Wyoming Statutory Trust.
4. Michigan State Tax Registration
Once you have your Federal EIN, you may need to register with the Michigan Department of Treasury.
- If your LLC will have employees or sell taxable goods in Michigan, you must use your EIN to register for Sales Tax or Withholding Tax via the Michigan Treasury Online (MTO) portal.
Summary of the Structure
| Entity | Role | Tax ID Used |
|---|---|---|
| Wyoming Statutory Trust | Parent / Owner | Trust EIN |
| Michigan LLC | Operating Entity | LLC EIN (Disregarded to Trust) |
| You (Trustee) | Manager / Signer | Your SSN (for IRS identity only) |