How to get an Employer Identification Number i.e. EIN for your LLC?
Limited Liability Company (i.e. LLC) is a business structure that amalgamate the pass–through taxation of a partnership or sole proprietorship with limited liability protection of the corporation. In addition to protecting your family assets avowing you to claim your company profits in your personal tax returns, LLCs also endeavor you the competence to choose from multiple taxation opportunity such as being taxed like a sole proprietorship or being taxed like a S- corporation firm. The Limited Liability Company (i.e. LLC) is one of the most prominent business entity type.
What is an LLC’s EIN used for?
The LLC’s EIN for the business entity is used for –
- All the correspondence with the IRS
- Deposits and payments for the federal taxes
- Filing a tax return and other documents (federal, state, and local)
- Handling of the employee payroll (if applicable)
- Retrieving the business lines of credit or business loans
- Accomplishing the credit cards in the name of the LLC
- Applying for the business licenses
What are the different steps by which one can get an EIN for your LLC?
The different steps by which one can get an EIN for your LLC are –
- Prepare your information
- Name a responsible party
- Apply for your LLC EIN via Online
- Applying for your LLC EIN via Traditional Mail
- Apply for your LLC EIN via Fax
- Receiving your LLC EIN (Tax ID) Documents
. Prepare your information
In order to apply for an EIN, one need to answer some of the complex questions regarding your business entity and its owners. These questions may encompass such as Social Security Number (i.e. SSN) of the existing owners, the purpose of your filing an EIN, projected wages of the employees etc.
Name a responsible party
As far as the IRS is concerned, no matter how many members you have in your LLC or corporation, there is only one responsible party for each Tax ID application. You may need to convene your partners so as to review who your LLC’s responsible party should be. As the responsible party personal information will be required during the Tax ID application process so as to apply for an EIN for business entity.
Apply for your LLC EIN via Online
You may acquire your Tax ID or Employer Identification Number (i.e. EIN) from IRS portal via Online IRS EIN Application form. The online application process has an average concoct time of 30 minutes and is open from 07:00 AM to 10:00 PM (Eastern Time). One thing that you need to note is, IRS did not provide phone support to the EIN applicants for applying an EIN for the business entity. So if you are trying to get your EIN after hours, there are many other alternative by which one can get Tax ID obtainment services available 24*7.
Apply for your LLC EIN via Traditional Mail
The IRS also administer you a Tax ID obtainment service via traditional mail. This option typically takes upto 4 to 5 weeks to process, depending on the IRS demand and workload. In case, if your application get denied due to any aforementioned errors. Then you may have to wait for those few weeks only so as to receive your error/denial message regarding your EIN application.
Apply for your LLC EIN via Fax
The IRS also accepts the EIN Number applications by Fax and typically takes up to 4 days to process the faxed EIN application for the business entity. Although, using this method is not 100% foolproof as there is no affirmation that your fax was successfully conveyed to the proper terminal or that the proper terminal had received it on the other end.
Receiving your LLC EIN (Tax ID) Documents
One may receive an email containing your Tax ID Number for your LLC or corporation. In addition to this, you should also be on the lookout for a traditional mail envelope encompassing your official Tax ID documents from the Internal Revenue Service i.e. IRS.