How to get an Employer Identification Number

How to get an Employer Identification Number i.e. EIN Number for your LLC?

Limited Liability Company (i.e. 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 assets and allowing you to claim your company profits in your personal tax returns, LLCs also offer you the ability to choose from multiple taxation options such as being taxed like a sole proprietorship or being taxed like an S-Corporation firm. The Limited Liability Company (i.e. LLC) is the most popular business entity type.

What is an LLC’s EIN Number used for?

The LLC’s EIN Number 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)
  • Obtaining the business lines of credit or business loans
  • Obtaining the credit cards in the name of the LLC
  • Applying for the business licenses

What are the different steps to get an EIN Number for your LLC?

The different steps to get an EIN Number for your LLC are –

  • Prepare your information
  • Name a responsible party
  • Apply for your LLC EIN Number Online
  • Applying for your LLC EIN Number by Traditional Mail
  • Apply for your LLC EIN Number by Fax
  • Receiving your LLC EIN Number (Tax ID) Documents
  • Prepare your information

In order to apply for the EIN Number, you need to answer some of the complex questions regarding your business and its owners. These questions may include – Social Security Number (SSNs) of the existing owners, the purpose of your filing the EIN Number, 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, there is only one responsible party for each Tax ID application. You may need to gather your partners so as to discuss who your LLC’s responsible party should be. As the responsible party’s personal information will be required during the Tax ID application process.

  • Apply for your LLC EIN Number Online

You may obtain your Tax ID or Employer Identification Number (i.e. EIN) from the IRS via the Online IRS EIN Application form. The online application process has an average processing 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, the IRS did not provide you phone support for the EIN applicants; if you are trying to get your EIN Number after hours, there are alternative Tax ID obtainment services available 24*7.

  • Apply for your LLC EIN Number by Traditional Mail

The IRS also provides you a Tax ID obtainment service via traditional mail. This option typically takes up to 4 to 5 weeks, depending on the IRS demand and workload and if your application is denied due to any aforementioned errors, then you will have to wait for those few weeks only so as to receive your error/denial message.

  • Apply for your LLC EIN Number by Fax

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

  • Receiving your LLC EIN Number (Tax ID) Documents

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