How to Get an LLC and EIN

Steps for Obtaining a Tax ID Number from the IRS

Obtaining your EIN Number for an LLC can be done fairly easily online. Now that EIN (Tax ID) obtainment is available via the web, businesses no longer need to apply the “old way” via fax or by mail. Simply follow these step-by-step instructions to obtain your LLC’s Tax ID (EIN) Number Online. Start by browsing through the common definitions below to get familiar with necessary terms that will make your EIN obtainment process a walk in the park.

Steps to Obtain your Estate Tax ID Number Online:

1. Prepare Your Information
2. Name a Responsible Party
3. Apply for your LLC EIN Online
4. Apply for your LLC EIN by Traditional Mail
5. Apply for your LLC EIN by Fax
6. Receive your LLC EIN (Tax ID) Documents

What is an LLC?

A Limited Liability Company (LLC) is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability protection of a corporation. In addition to protecting your family’s assets and allowing you to claim your company’s profits in your personal tax returns, LLCs also offer the ability to choose from multiple taxation options, such as being taxed like a Sole Proprietorship or being taxed like an S-Corporation. The Limited Liability Company (LLC) is the most popular business entity type in America today.

What Is a Responsible Party?

A “Responsible Party” is the person who has a level of control over the funds or assets in the entity that enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. If an LLC has multiple owners (LLC owners are called Members), a single representative of the LLC must be named responsible for obtaining a Tax ID Number on behalf of the LLC. In other words, the Limited Liability Company (LLC) may have multiple owners, but there can be only one Responsible Party obtaining the federal Tax ID Number for an LLC.

How to Get an EIN (Tax ID) for your LLC:

1. Prepare Your Information

Have your answers ready before you begin the EIN application process. You will be asked complex questions requiring general knowledge of your business and its owners. For example: Social Security Numbers (SSNs) of existing owners, purpose of your filing, projected wages, etc.

2. Name a Responsible Party

As far as the IRS is concerned, no matter how many members in your LLC, there is only one responsible party for each Tax ID application. You may need to gather your partners to discuss who your LLC’s responsible party should be. The responsible party’s personal information will be required during the Tax ID application process.

3. Apply for your LLC EIN Online

You may obtain your Tax ID or Employer Identification Number (EIN) from the IRS via the Online IRS EIN Application. The online application process has an average processing time of 30 minutes and is open 7:00am to 10:00pm PST. Please note, the IRS no longer provides phone support for EIN applicants; if you are trying to get your EIN after hours, there are alternative Tax ID obtainment services available 24/7.

4. Apply for your LLC EIN by Traditional Mail

The IRS also provides a Tax ID obtainment service via traditional mail. This option typically takes 4-5 weeks, depending on IRS demand and workload; and if your application is denied due to aforementioned errors, you will have to wait those few weeks only to receive your error/denial message. Note that many of these error messages do not provide any precise instruction on how to resolve the problem and you may be left starting the EIN obtainment process over from the beginning.

5. Apply for your LLC EIN by Fax

The IRS also accepts EIN Number applications by fax and typically takes up to 4 days to process faxed applications. Although, using this method is not 100% foolproof as there is no confirmation that your fax was successfully delivered or that the proper terminal had received it on the other end.

6. Receive your LLC EIN (Tax ID) Documents

You should receive an email containing the Tax ID Number for your LLC. In addition, you should also be on the lookout for a traditional mail envelope containing your official Tax ID documents from the Internal Revenue Service.

To obtain your EIN for LLC immediately, get started now!

How to Get an EIN for an LLC: FAQ

1. What is an EIN, and why does my LLC need one?
An EIN (Employer Identification Number) is a nine-digit number issued by the IRS to identify a business for tax purposes. You might also know it as an LLC Tax ID number. Your LLC may need an EIN to do some basic things such as opening a business bank account, file federal and state taxes, apply for permits (as well as licenses or business credit), and even to hire employees.

2. Who is eligible to apply for an EIN for an LLC?
Whoever is in charge of the LLC can apply for an EIN. They will need a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

3. How can I apply for an EIN for my LLC?
There are three main ways to apply for an LLC::

• Online: All you have to do is visit the IRS EIN Assistant tool on the IRS website. It shouldn’t surprise you to know that this is the fastest method, and you will receive your EIN immediately upon completing the process.
• Mail: Good-old reliable physical mail. You will need to complete IRS Form SS-4 and mail it to the IRS. Then, you’ll have to wait 4-6 weeks while your application is processed..
• Fax: Yup, fax. Send the completed Form SS-4 to the IRS fax number listed on the form. At least it’s better than mail, since it takes about 4-7 business days.

4. What information is required to apply for an EIN for an LLC?

This is a list of all the legal documents you’ll need to apply for an AIN:

• The LLC’s legal name and trade name (if different).
• The responsible party’s name and SSN or ITIN.
• The LLC’s mailing and physical address.
• The type of entity (LLC) and the number of members.
• The reason for applying (e.g., starting a new business or hiring employees).

5. Do single-member LLCs need an EIN?
While single-member LLCs are taxed as sole proprietorships and therefore do not always need an EIN (for example, if they do not have employees or file excise tax returns). However, an EIN is required if the LLC chooses to be taxed as a corporation (or simply if it has employees). It’s not unheard of for single-member LLCs to obtain an EIN for convenience in banking or separating business and personal finances.

6. Can I apply for an EIN before forming my LLC?
No, you must form your LLC and have the official legal name and documentation (such as your Articles of Organization) before applying for an EIN. We understand why it can be tempting, however.

7. How much does it cost to obtain an EIN for an LLC?
The IRS provides EINs free of charge, and you should be cautious (and perhaps even suspicious) of any third-party services looking to charge you for applying on your behalf.

US Tax Center Staff

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