How to Obtain a Tax ID Number for an LLC

How to Obtain a Tax ID Number for an LLC

by Brette Sember, Esq., January 2016

When you decide to form a limited liability company, there are several things you need to do to ensure you are in compliance with state and federal tax laws. Carefully understanding all of the regulations will help you meet your tax obligations as you move forward with your new LLC company.

Do I Need a Tax Number for LLC?

The IRS uses EINs to identify your business in your tax filings and dealings with the agency. If your LLC has more than one member (owner) or has employees (part or full-time) you will need to obtain an employer identification number (an EIN, also called tax ID numbers) from the IRS. If you are an existing sole proprietor limited liability company and you are about to hire your first employee, you will need to obtain a federal tax number for that purpose.

If you are a sole proprietor LLC without any employees, you can continue to use your Social Security number for your tax filings if you wish. Be aware though that an EIN can help you avoid identity theft issues that can pop up when you are filling in your Social Security number on forms and giving it out to clients and vendors.

Obtain Tax ID Number

Now that you are going to be setting up an LLC you may wonder how to obtain a tax ID number for an LLC. While you can apply for an EIN yourself, you can also authorize someone else to do it for you. Go to the IRS site to begin getting a tax ID number. You can apply for one through this online tool if your principal place of business is in the U.S. or U.S. Territories. To apply you must yourself have a Social Security number, EIN, or ITIN.

Only one person from your company can apply for an IRS tax ID number for LLC each day. To obtain an EIN, you must complete the online form in one session. If you leave the form idle for more than fifteen minutes, the session will expire and you will have to start over from scratch. After you complete the EIN application, you will receive the federal tax ID number immediately online.

When obtaining a tax ID number through the online application, you need to specify the type of legal structure of your company and a limited liability company is the option to check here. You need to indicate the number of members in your LLC as well as the state where it is physically located. You are also required to give a reason for why you are getting a tax ID number now (such as forming a new business or because you are going to hire employees). You need to enter your name and Social Security number into the form.

Once you complete the application, you will receive the EIN and can begin using it immediately. Using an EIN is an important way to fulfill your tax obligations and make paperwork go smoothly for your LLC.

If you need to obtain an EIN for your business, LegalZoom can help. Just answer a few simple questions online and we file the paperwork and deal with the IRS on your behalf. We will also help you start an LLC, corporation, or nonprofit and our legal help plans get you in touch with an independent attorney.