How to Get an EIN for an LLC

To ensure the smooth operation and legal compliance of your new LLC, it's crucial to fulfill all your tax obligations.

The process begins with registering your LLC with the appropriate state authority, typically the Secretary of State's office.

After registration, the company owner must decide whether they need or wish to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS).

It's important to note that LLCs without employees are not required to obtain an EIN for their business operations. Instead, they can file business taxes using the owner's Social Security Number (SSN). However, obtaining an EIN becomes necessary when the LLC hires its first employee, as this number is used for filing the company's tax returns.

Furthermore, if you are not a permanent resident of the US and do not have an SSN, then obtaining an EIN for your company is essential.

Determining EIN Eligibility

The first step toward obtaining an Employer Identification Number (EIN) is to determine if your business entity meets the requirements set by the United States Tax Code (IRS):

• You can apply for an EIN if your principal business is located in the United States or a U.S. territory.
• You must provide a valid taxpayer identification number, such as a Social Security Number (SSN) or an Employer Identification Number.
• Only one "responsible party" can apply for an EIN per day, defined as the person who has ultimate control over the business.
• While an EIN applicant is not required to be a U.S. citizen, foreign applicants cannot apply online. U.S. citizens can request an EIN using an online application.

At GrowthBusiness, in addition to forming a company in America, we handle all procedures for issuing an EIN for your company, so you can then hire employees or open a bank account!

Applying for an EIN

The EIN application is available on the IRS website. It's important to note that the application must be completed in a single session and typically takes about 15 minutes.

Read more: Advantages and disadvantages of a Delaware company!

EIN Application Process

It's important to know that the application for an Employer Identification Number (EIN) cannot be saved for future changes. Therefore, dedicate enough time to fully answer all questions. If you prefer to submit your application by phone, you can contact the IRS at (800) 829-4933 and select EIN from the options list.

Online application submission allows for immediate EIN assignment, while other methods may result in delays.

The information required for the EIN application includes:

• Names and Social Security Numbers (SSN) of the owners.
• Name of the LLC's responsible party.
• LLC's legal name, address, and trade names.
• Date the LLC was formed.
• LLC's primary business activity.
• Expected number of LLC employees.

Once obtained, the EIN identifies the entity for IRS purposes and is used to secure business banking transactions, apply for licenses and permits, and file the company's tax returns.

For foreign shareholders or company owners, the process must be completed at an IRS office and can take up to 4 weeks. At GrowthBusiness, we issue EINs daily for our clients' companies, quickly and efficiently, through our accountants in the US.

Contact us today to learn about all the services we can offer you!