As the name suggests, an LLC is a limited liability company. This type of business structure provides its owners with personal liability protection from the debts and obligations of the business. In order to establish an LLC, you must file articles of organization with your state’s business filing office.
One of the key components of setting up an LLC is obtaining an Employer Identification Number (EIN). The process for doing this is relatively simple and can be completed online, by fax, or by mail.
The easiest method is to use an online tool to apply.
In Brief: How to Apply for a Tax ID (EIN)
1. Gather the required information.
2. Use an online EIN application tool.
3. Fill out and submit the application.
4. Receive your EIN confirmation notice.
What is a Tax ID (EIN) Number?
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. It is issued by the Internal Revenue Service (IRS).
An EIN is a nine-digit number that is assigned to a business by the IRS. It is used for tax purposes and is required in order to open a business bank account and file business tax returns.
Any business that has employees must have an EIN. This includes corporations, partnerships, and limited liability companies (LLCs). Even businesses that are sole proprietorships with no employees may obtain an EIN, if they choose to get business-related discounts or purchase tax-free merchandise.
What is an LLC?
A limited liability company (LLC) is a business structure that provides its owners with personal liability protection from the debts and obligations of the business. An LLC is formed by filing articles of organization with your state’s business filing office.
Does Your LLC Need a Tax ID Number?
The short answer is yes—all LLCs need a Tax ID number, also known as an Employer Identification Number (EIN).
An EIN is a unique nine-digit number assigned by the IRS. It’s used to identify your LLC for tax purposes and is required in order to open a business bank account and file business tax returns.
While you can go without it for some time, you are eventually going to need it to file your taxes and to hire employees.
What Documents Do You Need to Get a Tax ID Number?
The IRS requires that you provide some basic information about your LLC in order to obtain an EIN. This includes:
- The name and address of your LLC
- The name and Social Security number of the LLC’s owner or managing member
- The date your LLC was formed
- The type of business your LLC is engaged in
Can Anyone Apply for an EIN?
Yes, anyone can apply for an EIN. This includes LLCs, corporations, partnerships, and sole proprietorships. You do not need to be a U.S. citizen or resident to obtain an EIN.
Are There Limitations to an EIN?
No, there are no limitations to an EIN. Once you have obtained one, you can use it for as long as your LLC exists. The only limitation is that you can only apply for a certain number per day.
What Methods Can You Use to Get a Tax ID Number?
There are three methods for applying for an EIN: online, by fax, or by mail.
Applying online is the quickest and easiest method. It can be done through an online EIN service website and you will receive your EIN within hours upon completion of the application.
If you choose to apply by fax, you can find the forms and fax numbers. You will need to wait four to five weeks to receive your EIN by fax.
Finally, you can apply for an EIN by mail using Form SS-4. You will need to wait four to five weeks to receive your EIN by mail. If you’ve done anything wrong, you will need to reapply.
Get Your EIN Today
You can get your EIN today by filling out a simple, fast form online. You should know within an hour whether your EIN worked. If you file online, you can correct your application easily. You can even sometimes get your corporate documents uploaded at the same time, through an EIN service that will file your business applications for you.
Frequently Asked Questions
There are many reasons why you should get a tax ID online. The main reason is that it is the quickest and easiest method. You can complete the application in minutes and receive your EIN within hours.
You should get a tax ID number when you start your LLC. You can apply for your EIN as soon as you have filed your articles of organization with your state.
No, a tax ID number is not the same as an SSN. A tax ID number is a nine-digit number assigned by the IRS. An SSN is a nine-digit number assigned by the Social Security Administration.
No, you do not need an SSN to get a Tax ID. You can use your ITIN instead. This is common for legal immigrants who have green cards.
No, a tax ID number is not the same as a sales tax number. A tax ID number is a nine-digit number assigned by the IRS. A sales tax number is a state-issued number used to collect sales taxes.