Do I Need a Separate EIN for my LLC?

Comments · 368 Views

In the event that you're working alone, similar to a sole proprietorship, but carrying on with work as a LLC, you needn't bother with a separate EIN to run your business. You can use your Social Security number.

Unless you have employees or, as referenced, are at risk to document excise tax returns because you sell tobacco, liquor, or fuel.

Is an EIN the Same as a SSN?
There's one vital contrast between an EIN Number and a Social Security Number: An EIN is for business and a SSN is for individuals.

Nonetheless, that often confuses because, given specific circumstances, a SSN is usable for federal tax.

For instance: Sole proprietors who don't record pension plans, excise tax returns, and have no employees needn't bother with an EIN. Instead, they can use their SSN as their Tax Identification Number (TIN).

Disregarded entities, such as single-member LLCs without employees and no excise tax liability, also don't require an EIN. They can also use their SSN as their TIN while documenting personal tax returns.

Is an EIN the Same as a TIN?
A Tax Identification number (TIN) is a 9 digit identification number issued by the Internal Revenue Service (IRS) and used to identify and follow individuals while reporting taxes.

The thing that matters is that a Tax Identification Number is used to identify taxable registered agent while an Employer Identification number is used to identify companies in the U.S.

A TIN is also alluded to as a Tax I.D. number or a 95 Number.

Do I Get an EIN or Form a LLC First?
You must first form your LLC prior to getting an EIN because the IRS asks for your legal business name and business formation date on the EIN application.

You register your business name while recording your articles of association with your state.

But before you record your LLC application, research your chosen business name to ensure it's accessible as a LLC name in your state and isn't trademarked at a public level.

Assuming that your chosen LLC business name is now registered or excessively similar to another business, your secretary of state's office could refuse your application. Which would be really costly since LLC documenting fees are expensive and non-refundable.

What You Want While Applying for an EIN
applying for an ein
You really want the accompanying 6 things to apply for an EIN:

1. Your LLC must be registered and supported

2. Your business name

3. Business exchanging name if using a DBA (Carrying on with Work As)

4. Your legal name

5. Your business mailing address or your registered agent's address

6. A valid TIN (Taxpayer Identification Number)/Social Security Number

Note: Just U.S. domain and United States-based businesses are qualified for an EIN.

Instructions to Apply for EIN
The IRS issues all Employer Identity Numbers and it's easy to get. You should simply finish up a one-page form.

You can, of course, enlist an attorney to assist you with finishing all necessary forms to ensure you provide the right information and miss no essential steps.

There are 4 ways to apply:

1. Applying Online: The easiest method for getting an EIN is to apply to the IRS website using the EIN Assistant.

2. Via mail: If applying via mail, the IRS advises you to send your application something like 4 weeks before you want your EIN. Included with the IRS Form SS-4 and your SSN or TIN. The mailing address is the Internal Revenue Service, EIN Activity, Cincinnati, Goodness 45999.

3. By phone (global applicants just): Worldwide applicants can call 267-941-1099, Monday to Friday, 6.00 am to 11.00 pm (Eastern time).

4. Fax: Yes, you can send your EIN application by fax to (855) 641-6935. You can apply by fax using your TIN, and the service is accessible 24 hours per day, seven days every week.

How to Recuperate Your EIN assuming you Neglect or lose it?
Assuming that you lose your EIN, you have 2 options to recover it:

1. Call the IRS Phone help for Businesses line

2. Or on the other hand call the IRS EIN Office at 1-800-829-4933, where you can converse with a representative

Hours of activity are from 7.00 am to 7.00 pm, Monday to Friday. When the IRS verifies that you're the responsible party (you'll require your SSN), they'll provide you with your EIN.

Comments