Get Tax ID Number for LLC: Everything You Need to Know
Not all LLCs will require a tax ID number. Even so, many business owners find it very beneficial to have one.3 min read
To get tax ID number for LLC, do the following:
- Prepare your information.
- Name a responsible party.
- Apply online, by fax, or by mail.
- Receive your tax ID documents.
Not all LLCs will require a tax ID number, also known as an Employer Identification Number, EIN, or federal tax identification number. Even so, many business owners (including single-member LLC owners) find it very beneficial to have one instead of using their Social Security Number when conducting business.
How to Obtain a Tax ID
It's easy to obtain a federal tax ID, especially if you apply online, but your business's principal address must be in the U.S. or a U.S. territory for you to be able to apply online.
You'll need one of the following to apply for an EIN:
- Social Security Number
If you have more than one person in your company, only one of you will be able to apply for a tax ID. You'll have to specify your business structure, so check the limited liability company option when applying.
You have to complete the online application in one session. Once you complete your online application, you'll receive your number immediately.
Prepare your information
Before you start your application, have all of the necessary information ready. You'll have to answer some fairly complex questions about your business and the owners, or members. You should know the following:
- Members' social security numbers
- Projected wages
- Purpose of your filing
Choose a responsible party
Regardless of how many members your LLC has, only one can be designated the “responsible party” when applying for a tax ID. The responsible party will have to provide personal information when filling out the application.
You should talk to the other owners and decide who this person will be. In most cases, this should be someone in the company who has some measure of control over your company's assets and funds. He or she has direct or indirect control over how your business funds are managed and distributed.
Various Ways to Apply
The easiest and quickest way to apply is online. You'll visit the IRS website and fill out an application. The average time to complete and process your application is 30 minutes. You'll be able to apply Monday - Friday, 7:00 am-10:00 pm Eastern Standard Time.
You won't be able to apply online after hours because the IRS doesn't provide phone support for applicants.
Apply by mail
You can apply for an EIN by mail.
It will take about four to five weeks to receive your number. This time frame depends on the IRS workload. In addition, if your application is denied due to some error, it could take several weeks just to receive notice of the denial. You might also not have specific ideas on how to resolve any errors, leaving you to start your application process from scratch.
Apply by fax
If you prefer, you can also apply for an EIN by fax. It may take up to four days for the IRS to process your application this way. Unfortunately, you'll get no confirmation that your application was received or that it's being processed.
Once You Receive Your Documents
If your application is successful, you'll receive an email which has your LLC's tax ID Number. You should also receive your official tax ID documents in the mail from the IRS. When you receive your EIN, you'll be able to use it right away.
Having this number allows you to fulfill tax obligations. It also helps make your business paperwork go smoothly.
Even if you're not required to have a tax ID number for your LLC, you might want to obtain one anyway, for peace of mind. With identify theft such a huge problem, you should take any steps to protect personal information, such as your Social Security Number, any time you can.
Obtaining an EIN is free. If you apply online, it's also convenient and quick. Keep in mind that some banks and financial institutions require you to have an EIN to open a business bank account. You'll also need one if you plan to hire any employees for your business.
If you need help getting a tax ID number for your 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.