Whether you’ve already started an LLC or you’re looking into creating one, you’ll need a Tax ID Number (EIN) to go along with it. Like LLPs, C-Corps, and LPs, an LLC creates a separate legal entity for your business. Separate legal entities often need their own federal EIN numbers.
Steps to Applying for an LLC Tax ID (EIN) Number Online
- Prepare Mandatory Business Information
- Apply for an LLC Tax ID (EIN) Number Online
- Apply for an LLC Tax ID (EIN) Number via Mail or Fax
- How Do I Obtain a Tax ID (EIN) Number for my Limited Liability Company?
- How Long Does it Take to Obtain a Tax ID (EIN) Number for my LLC?
- Why Do I Need a Tax ID (EIN) Number for my Limited Liability Company?
If you want to apply for a Tax ID Number, start by collecting your mandatory business information. The easiest way to get started is to collect the documents related to your LLC’s formation.
When applying for an EIN through an online EIN application, you’ll need the following information:
- The name and mailing address of the business.
- The name of the responsible party and their SSN or ITIN.
- The type of business entity that the business is (in this case an LLC).
- The reason you have for applying for an EIN.
- The major activity that your business does.
LLCs are commonly found in rental and leasing, real estate, personal services, and more. You can apply for an EIN before you form your LLC, but in order to do so, you will need to file your LLC documents swiftly and make sure these documents match with your EIN form.
Applying for an LLC Tax ID Number Online is usually the best option, because it’s fast. You can apply through a tax ID service and get a Tax ID Number in approximately 60 minutes. A tax ID service will collect your business-related information, as well as the information about the individual responsible for the business, and submit it for processing. You’ll be able to acquire an ID shortly thereafter. Once the ID has been processed, it can be used.
You can apply for an EIN Number through mail or fax by filling out a paper form. This paper form will require your business information, which includes the industry that the business is in, as well as its reasons for needing an EIN.
Once you’ve filled out the paper form, you can fax it in. It will be processed within five business days, and you’ll receive an EIN by fax. If you’d rather send it in through the mail, you can mail it in: it will be processed within six weeks.
Applying for an LLC Tax ID via mail or fax is a fairly simple process, but it takes a lot longer than applying online. An online application needs the same information, and can return a tax ID within an hour.
You can obtain a Federal EIN Number, also known as an FEIN Number, for an LLC by filling out either an online or paper form. If you fill out an online form, you can send it in digitally through a tax ID service, and get an EIN in an hour.
If you fill out a paper form, you can either send it in through fax or through mail. You will get an EIN Number returned. For a faxed form, you’ll get an EIN Number within five business days. For a mailed in form, you’ll get an EIN Number within six weeks.
Either way, you’ll be filling out the same form: the only thing that changes is the method that you use to submit that form.
If you apply for an EIN number through the internet, you’ll be able to get a Tax ID Number in about an hour. This is one reason why an online application is considered the best option.
You can also apply for a Tax ID Number through a fax machine, which will take about three to five business days. This does require that you have a fax machine (or e-fax) available.
Finally, it’s possible to submit the form through the mail. This is the longest route: it will take between four to six weeks to acquire your EIN. This isn’t a good option if you need your EIN Number now.
Most LLCs are going to need an EIN Number. The only exception would be an LLC that does not hire any employees and only opens personal bank accounts. An EIN number is needed to pay federal taxes for a Limited Liability Company, as well as:
- To open business bank accounts. Banks use your EIN as an identifying factor to determine whether you can open a business bank account.
- To hire employees. As an Employer Identification Number (EIN) an EIN is necessary for hiring employees and paying them.
- To pay payroll taxes. When payroll taxes are submitted, an EIN is used to associate those payments with a business.
- To acquire licenses and permits. Many state, city, and county agencies use EINs to identify businesses when acquiring permits.
- To get business-related loans. Since your business credit is attached to your EIN, you need one for business-related loans.
- To acquire wholesale products. Wholesalers often use EIN Numbers to identify businesses when selling wholesale and exclusive professional products.
As you can see, an EIN number is often used like a social security number: as a unique identifier for a business. A company’s credit score is attached to an EIN number, which makes an EIN number critical for many business operations.
As an LLC, you will need an EIN number eventually, so it’s a great idea to get one early. Through a tax ID service, you can fill out a form online and have an EIN Number within an hour.