Apply for an LLC Tax ID (EIN) Number | How to Apply Online
An Employer Identification Number (EIN) is a federally issued tax identification number that you use to identify your business to the Internal Revenue Service (IRS). If you own a limited liability company (LLC), you need an EIN for business income tax returns, employee tax returns, sales tax returns and for a variety of other activities. To help you understand the essentials, here`s a look at everything from how to prepare business owner information to how and where to apply.
- Prepare Business Owner Information
- Apply for an LLC Tax ID (EIN) Number Online
- Apply for an LLC Tax ID (EIN) Number by Phone, Mail or Fax
- Should I Get an EIN for My LLC?
- How Do I Get a Tax ID Number for My LLC?
- Do I Need an EIN to Open a Bank Account for an LLC?
To apply for an EIN, you need to provide the government with detailed information about yourself and your business. To prepare business owner information for the EIN application, gather the following details:
- The legal name of your LLC
- Trade name of your LLC
- The name of the executor, administrator or owner
- Street address
- Mailing address
- Name of responsible party
- The owner's Social Security Number, Individual Tax Identification Number or Employee Identification Number
- The type of entity
- Closing month of your accounting year; it's December if you use the calendar year but may be different depending on your business's fiscal year
- Date business started
- Number of employees
- Type of business activity
You can apply for an LLC tax ID (EIN) number online. If you want to avoid driving to the post office, standing in line, waiting on hold over the telephone, worrying about the downfalls of faxing or dealing with other hassles, you should probably consider applying online.
Online applications are straightforward and relatively easy to complete, and the process is faster than mailing or faxing an application. As soon as you receive the EIN number for your LLC, you can start using it on tax forms, loan applications and other documents. To apply online, you must be a U.S. resident, or your principal place of business must be in the United States or one of its possessions, and you must have an SSN, EIN or ITIN. If you don't have one of those personal tax identification numbers, you need to obtain one.
If you don't have access to a computer, you can apply for an LLC tax ID (EIN) number by phone, mail or fax. Unfortunately, residents can no longer apply for an EIN over the phone. However, you can apply for an EIN with a fax. You need to fill out all the paper SS-4 form and fax it in. To ensure that your application is processed quickly and without any hassles, you should work with a professional. Finally, you can also apply by mailing in a paper SS-4 application and waiting for your EIN to be mailed to you.
LLCs and a variety of other businesses need an EIN for a range of purposes. If you plan to do any of the following activities, or if any of the following statements apply to you, you need to apply for an EIN for your LLC:
- Hiring employees
- Opening a business bank account
- Applying for some business loans
- Establishing relationships with certain vendors or clients
- Filling out a tax form that requires an EIN, such as a sales tax, excise tax, use tax, payroll tax or other form
- Submitting certain state tax forms
- Changing the type of business, for instance, from a sole proprietorship to a partnership
- Claiming tax treaty benefits for income earned or taxes paid in another country
In some cases, single-member LLCs must use the owner's EIN rather than the LLC's EIN on forms such as the W-9 (Request for Taxpayer Identification Number and Certification). To ensure you know which numbers to use on which forms, you may want to consult with a professional.
Now that you understand why your LLC needs an EIN, you're probably wondering, “How do I get a tax ID number for my LLC?” As explained above, you can apply through the mail or by fax. Unfortunately, both of those options can be time-consuming, and with mail, there's always a risk of items getting lost. The fastest and easiest way to apply for an EIN for your LLC is to use the internet. Getting an EIN online saves time and reduces hassles. If you are not a resident and if your business does not have its principal location in the United States, you can't apply by fax, mail or online. Instead, you must apply over the phone. This option is not available to U.S. residents.
If you want to have a bank account for your LLC, you will almost always need an EIN Number. Most small business accounting specialists explain that it is essential to have separate business and personal bank accounts. That setup makes it easier to track your income and expenses, reducing the risk of missing a tax deduction or forgetting to report some of your income. However, most banks require you to have an EIN if you want to open a business account.