Apply for EIN for LLC: Everything You Need to Know
Business is required to apply EIN for LLC if the company files an Alcohol, Tobacco, and Firearms return has employees or withholds taxes of nonresident aliens.3 min read
Apply for EIN for LLC
Your business is required to apply for EIN for LLC if the company files an Alcohol, Tobacco, and Firearms return, has employees, or withholds taxes on money not made from wages of nonresident aliens. The EIN or employer identification number is a 9-digit number assigned by the Internal Revenue Service to identify a business entity. With an EIN, an LLC can file its tax return at the end of the year, open a business bank account, and apply for business licenses.
In some cases, you may be required to have a state tax ID number. It is a separate number that the state government will assign you. Other names for the EIN are TIN, FEIN, or federal tax ID number.
How Long Does It Take to Receive an EIN?
On the same day that you apply, you will receive your EIN by email unless you applied after 6 p.m. PST. You can use the tax identification number immediately for most of your business needs. However, it will take up to two weeks for it to become part of your permanent records with the IRS, which could impact how you may use the EIN in some situations.
Making Changes to the EIN
If the entity structure of your business changes, a new EIN is required. An example of this is changing from an LLC to a corporation. Once assigned, if you need to make specific changes to the EIN, then you will need to call the IRS-EIN line at 1-800-829-4833. Changes would include:
Date the business started
Not until your EIN becomes part of your permanent records will you be able to:
Pass an IRS taxpayer identification number matching program
File an electronic return
Make an electronic payment
If you need to cancel the EIN after you have received one, it is up to the managing member of the LLC to write a letter by hand and sent it to the IRS address where the company's tax return will get filed. The managing member is also required to sign the letter.
What Are the Steps for Applying for an EIN for an LLC
Obtaining your EIN Number or tax ID for an LLC can be done fairly quickly online, but you can also apply by mail or by faxing a form to the IRS.
The basic steps are as follows:
1. Get your information together.
2. Designate a responsible party.
3. Go to irs.gov to apply online.
4. Apply by mail or,
5. Apply by fax.
6. Get the EIN immediately if done online, in a few weeks if by mail, or a few days if by fax.
Reason to Apply for a Tax ID Number?
If you have started a new business and have hired or will hire employees, which includes household employees, you need to get an EIN. Other reasons to apply are:
Opening a bank account that requires an EIN.
Opening a business bank account or starting a business line of credit.
Representing an estate that operates a business following the owner's death.
Changing the ownership of the organization.
How Do You Determine a Responsible Party?
A responsible party is a person who has a level of control over the assets in the business that allows the person to directly or indirectly manage, control, or direct the business and the disposition of the property or funds. If multiple members own an LLC, one representative must be named responsible for obtaining the EIN on behalf of the LLC. Different LLC operating agreements and different states may vary when it comes to names used to describe LLC owners.
When Can You Can Get an EIN Online
The process for applying for your EIN online is straightforward and quick. The average processing time on the IRS website for getting an EIN is about 30 minutes. You can use the online system from 7 a.m. to 10 p.m. PST. If you need to get your EIN after those hours, there are other tax ID obtainment services that are available 24/7.
If you need help with applying for an EIN for LLC, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.