For tax purposes, you may need to file for an Employer Identification Number (EIN), when you form a limited liability company (LLC). Compared to a Social Security number, this nine-digit number is provided by the Internal Revenue Service ( IRS). This is easy to access, needing nothing more than a one-page fill-out form.
LLC Types And Taxes
An LLC is a State-created business entity. The IRS classifies an LLC as a company, partnership, or taxable unregarded entity — that is, not independent from its owner For taxation purposes:
· A member of LLC may opt to be a partnership or a company.
· An individual member LLC may opt to be a disregarded taxable entity or a company.
· When one person owns the disregarded body, that becomes a sole proprietorship.
· When the disregarded body is owned by a company, which is a branch or section of the company.
Does A Single-Member LLC Require An EIN?
In general, it will not, as the SSN of the individual will be used for federal income tax purposes, and the financial transactions of the LLC must be recorded on the federal tax returns of the owner.
It’s an exception that requires an EIN: if a single-member LLC is a taxable unregarded entity that has employees and pays federal employment taxes or income duties, it will be considered as a distinct entity, and an EIN for LLC will be required.
Because an EIN is necessary to open a business bank account or perform other business operations, several single-member LLCs acquire an EIN for LLC.
How To Apply For An EIN
Getting an EIN is only one of several tasks you want to make sure you do right. You can benefit both the protection of your personal properties from other business liabilities and the stability that the LLC structure can offer in managing your company.
You can decide to work with a lawyer or other professional — whether online or in-person — who can help you complete the specific documents you need to make sure you don’t miss any moves along the way.
Specific to the EIN, you have these options of applying:
· By fax
· By mail
· By telephone (international applicants only)
The IRS Form SS-4 must contain the liable party’s name and taxpayer identification number — the person or entity who regulates, directs, or handles the business activities. The IRS limits the issuance of EINs to one per person responsible per day.
Applying online at irs.gov provides the quickest turnaround. If the submission process for the EIN has been completed, the details are checked, and an EIN is immediately issued. Make sure to file your company documents and save the confirmation note.
Your company must be in the USA or the U.S. Territories in order to use the online facility. This service is available from Monday through Friday.
By Fax Or Mail
Additionally, you may fill up a paper form and give it back to the IRS via fax or mail. While faxing the documents, make sure to use the correct Fax-TIN number, which can shift without notification. Fax support is open 24/7. Make sure to include your fax number so that within four business days, the IRS will fax the EIN to you again.
When you want to submit the completed form to the support center in your state, prepare to wait four to six weeks before getting your EIN in the mail.
If you do not have an SSN and you aren’t a resident of the United States, you can always get an EIN. Only download IRS Form SS-4 and filled it out. You can leave vacant segment 7b.
To send your form, contact the IRS between 7:00 am and 10:00 pm. Monday to Friday at 267-941-1099 (NOT a toll-free number). Even, you can request an EIN via fax at 304-707-9471. You can read more about EINs here.