An LLC will need an EIN if it hires any employees or if it will be required to file certain excise tax forms.
The Importance of EIN for Your LLC
Do you know how the IRS tracks the tax reporting of your business? It’s through your business’s EIN (Employer Identification Number). Consider the EIN as your company’s Social Security number that you can provide to the IRS while filing taxes. This number is essential for businesses with employees. It’s wise to get your EIN as soon as your company starts commencing business.
Need of EIN for an LLC
Here are a couple of reasons why your LLC should have an EIN:
● If your business comes under excise tax liability or has employees.
● If your business has more than one member.
It’s best to get your EIN even if it doesn’t meet the above requirements. You will be amazed to know the benefits that your Employer Identification Number offers.
Benefits of EIN
Following are some of the reasons why you should get an EIN for your LLC:
Protect your company’s details
Suppose you plan to start a business without any employees. Circumstances arise and you have to change your plan. Once you start hiring employees, it’s compulsory to get your EIN. Moreover, your EIN will keep your Social Security Number private. It would reduce the risks of identity theft, thus allowing you to focus on your business activities without paying attention to these incidents.
Another reason why you should get your EIN is that it helps in opening your business bank account. It’s better not to have the same account for personal and business expenses. Does that mean the financial organizations will ask for your EIN even if your business doesn’t qualify for it? Probably not, but it’s still a good decision to keep the number ready whenever you want to apply for a loan.
Generating an EIN for your LLC
You should first register your company and get your certificate of incorporation before applying for your EIN. We have a guide on how to form your LLC and register your business. Do check the guide where you can also learn about the steps to apply for your EIN. Alternatively, you can hire us to provide LLC formation services so that your business gets registered on time. We believe that using the EIN Assistant online can provide you with your EIN in a quick time.
Things to remember while applying for your EIN
Keep the following things in mind while applying for your EIN on the EIN Assistant:
● The IRS office works from Monday to Friday and remains open from 7 am to 10 pm.
● You should already have your taxpayer identification number, such as ITIN or SSN.
● You need to fill out the application in one session. It’s not possible to save the application after completing only a part of it. Each session lasts for 15 minutes. Therefore, make sure you have the necessary details ready.
● You can only apply once per day.
● The assistant will provide your EIN once you fill out the form.
● If you are not tech-savvy, you can apply for your EIN by mailing or faxing the documents and completing the SS-4 form. Don’t forget to fax your documents to (855) 641-6935. On the other hand, if you mail your documents, send the form to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999.
Q: Is it possible to check another business’s EIN?
A: Yes, it’s possible. You need to visit the website of the Securities and Exchange Commission (SEC) EDGAR and fill out the required forms. Make sure to put the right details of the company to get accurate results.
Q: What should I do to recover my EIN?
A: If you are not able to find your EIN or didn’t receive the letter or confirmation email from the IRS, you can directly call the helpline number, 1-800-829-4933, of the IRS EIN Department. Talk to one of the representatives and find out your company’s EIN. Remember, the office remains open from 7 am to 7 pm from Monday to Friday.
Q: Do self-employed individuals require an EIN?
A: No, your SSN would suffice. But it’s wise to still get your EIN because it reduces the risks of identity theft. Keeping your personal and business accounts separate would make it difficult for anyone to hack into your accounts.
Q: What’s the difference between a TIN and EIN?
A: TIN refers to Taxpayer Identification Number and EIN means Employer Identification Number. They represent the same nine-digit number that the IRS requires to keep track of your company’s tax files.
Q: What’s the difference between a FEIN and EIN?
A: FEIN means Federal Tax Identification Number. It’s the same thing as EIN. EIN goes by different names, such as FEIN and TIN.
Q: How to search for my company’s EIN?
A: Once you fill out the EIN form, the EIN assistant will immediately come up with your business’s unique EIN number. If you mail or fax your application, the IRS will get back to you with your EIN number. Your company’s tax files and documents will also contain your EIN.
Q: Is there any difference between DUNS number and EIN?
A: Your company’s DUNS number allows you to create credit reports. It refers to the Data Universal Numbering System, a nine-digit number that Dun & Bradstreet issues. EIN is also a nine-digit number but it keeps a track of your company’s tax files.