How to Get an EIN Number for an LLC
Steps for Obtaining a Tax ID Number from the IRS
Obtaining your EIN Number for an LLC can be done fairly easily online. Now that EIN (Tax ID) obtainment is available via the web, businesses no longer need to apply the “old way” via fax or by mail. Simply follow these step-by-step instructions to obtain your LLC’s Tax ID (EIN) Number Online. Start by browsing through the common definitions below to get familiar with necessary terms that will make your EIN obtainment process a walk in the park.
What Is an LLC?
A Limited Liability Company (LLC) is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability protection of a corporation. In addition to protecting your family’s assets and allowing you to claim your company’s profits in your personal tax returns, LLCs also offer the ability to choose from multiple taxation options, such as being taxed like a Sole Proprietorship or being taxed like an S-Corporation. The Limited Liability Company (LLC) is the most popular business entity type in America today.
What Is a Responsible Party?
A “Responsible Party” is the person who has a level of control over the funds or assets in the entity that enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. If an LLC has multiple owners (LLC owners are called Members), a single representative of the LLC must be named responsible for obtaining a Tax ID Number on behalf of the LLC. In other words, the Limited Liability Company (LLC) may have multiple owners, but there can be only one Responsible Party obtaining the federal Tax ID Number for an LLC.
How to Get an EIN for Your LLC:
1. Prepare Your Information – Have your answers ready before you begin the EIN application process. You will be asked complex questions requiring general knowledge of your business and its owners. For example: Social Security Numbers (SSNs) of existing owners, purpose of your filing, projected wages, etc.
2. Name a Responsible Party – As far as the IRS is concerned, no matter how many members in your LLC, there is only one responsible party for each Tax ID application. You may need to gather your partners to discuss who your LLC’s responsible party should be. The responsible party’s personal information will be required during the Tax ID application process.
3. Apply for EIN Online – You may obtain your Tax ID or Employer Identification Number (EIN) from the IRS via the Online IRS EIN Application. The online application process has an average processing time of 30 minutes and is open 7:00am to 10:00pm PST. Please note, the IRS no longer provides phone support for EIN applicants; if you are trying to get your EIN after hours, there are alternative Tax ID obtainment services available 24/7.
4. Apply for EIN by Mail – The IRS also provides a Tax ID obtainment service via traditional mail. This option typically takes 4-5 weeks, depending on IRS demand and workload; and if your application is denied due to aforementioned errors, you will have to wait those few weeks only to receive your error/denial message. Note that many of these error messages do not provide any precise instruction on how to resolve the problem and you may be left starting the EIN obtainment process over from the beginning.
5. Apply for EIN by Fax – The IRS also accepts EIN Number applications by fax and typically takes up to 4 days to process faxed applications. Although, using this method is not 100% foolproof as there is no confirmation that your fax was successfully delivered or that the proper terminal had received it on the other end.
6. Receive Tax ID (EIN) Documents – You should receive an email containing the Tax ID Number for your LLC. In addition, you should also be on the lookout for a traditional mail envelope containing your official Tax ID documents from the Internal Revenue Service.
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