Be sure to meet your tax obligations as you move forward with your new LLC company.
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by Brette Sember, J.D.
Brette is a former attorney and has been a writer and editor for more than 25 years. She is the author of more than 4...
Updated on: March 21, 2024 · 1 min read
Once an LLC is registered with the appropriate state government agency, usually the secretary of state, the entity's owner must decide whether they wish or need to secure an Employer Identification Number (EIN) from the Internal Revenue Service.
LLCs without employees don't need to obtain an EIN to do business as they may file the business' taxes using the owner's Social Security Number (SSN). However, once an LLC hires its first employee, an EIN is required for the entity to file taxes.
The first step to securing an EIN is determining whether your entity qualifies for one under IRS guidelines:
The IRS defines a responsible party as someone with ultimate control over the business enterprise.
Moreover, while an EIN seeker need not be a U.S. citizen, foreign applicants may not apply online. American citizens may seek an EIN using an online application.
The application for an EIN is found on the IRS website. It is important to note that the application must be completed in one sitting and generally takes about 15 minutes.
It cannot be saved for future revisions, so set time aside to respond to all questions fully. For those who prefer to apply over the telephone, contact the IRS at (800) 829-4933 and select EIN from the list of options.
Applying online allows for the immediate assignment of an EIN, while other methods result in time delays.
Information needed for an EIN application includes:
An EIN identifies an entity for IRS purposes. Once secured, the EIN is used to secure business banking, apply for necessary licenses and permits, and file company tax returns.
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