Are you about to form an LLC? Starting an LLC often begins with applying for an LLC tax ID – a process that is generally best done online. You can begin the process online and complete it in under an hour – you just need the right information and the right help. Here’s everything you need to know about applying for an LLC tax ID (EIN) number.
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Steps to Applying for a Tax ID for a Single-Member LLC or Multi-Member LLC:
- Prepare Business Owner Information
- Apply for an LLC Tax ID (EIN) Number Online
- Apply for an LLC Tax ID (EIN) Number by Phone, Mail or Fax
- Should I Get an EIN for My LLC?
- How Do I Get a Tax ID Number for My LLC?
- Do I Need an EIN to Open a Bank Account for an LLC?
1. Prepare Business Owner Information
To apply for an LLC tax ID, you’ll first need the business owner’s information: taxpayer identification number, full name, address and date of birth. Registering an LLC in the United States requires that a business owner be in the United States and have a valid tax ID number themselves. This tax ID number may either be a Social Security number (SSN) or an individual tax identification number (ITIN). An ITIN is given to those who are able to live and work within the United States but are noncitizens.
You should also know when your business was first formed.
2. Apply for an LLC Tax ID (EIN) Number Online
While an LLC Tax ID (EIN) can be applied for through fax or mail, applying online is faster, easier and better. Through the online application process, you can acquire an LLC tax ID in an hour or less. Fax or mail will require you to wait anywhere from four days to six weeks, depending on the current processing volume. If there are mistakes on your application, you will need to restart the waiting process from the beginning.
To apply for an LLC tax ID (EIN) number online, you want to have your basic business information on hand:
- LLC Name as is or will be registered with your state.
- Responsible Party information including:
- Legal Name
- Social Security Number
- Physical Business Address
- Contact Phone Number
3. Apply for an LLC Tax ID (EIN) Number by Phone, Mail or Fax
You can begin the process of applying for an LLC tax ID number via phone, mail or fax, but all of these options are slower and less reliable than the online application process. Unless you pay for an additional receipt of delivery, both mail and fax applications can get lost in transit, leaving you waiting for more information. Mail can take up to six weeks to process, and faxed-in applications can take up to four days.
The information needed and the general application process is the same whether you’re applying online, via phone, through the mail or by fax. As long as you have the needed information, applying online is the best choice.
4. Should I Get an EIN for My LLC?
An LLC tax ID is known both as a federal tax ID number and an employer identification number. This is because an LLC tax ID will be used to pay federal taxes for the LLC as well as hiring for the LLC. It is not possible to hire individuals without an EIN.
In addition to this, an EIN is frequently used by banks, lenders and creditors. If you want to get a business checking account, savings account, business line of credit, business loan or even a business credit card, an EIN can be used to separate your business identity from your personal identity.
Your EIN will be used to track the credit history of your business just like your Social Security number is used to track your personal credit history. However, a sole proprietorship may still use their Social Security number.
5. How Do I Get a Tax ID Number for My LLC?
You can get a tax ID number for your LLC using three methods: by applying online, applying via fax or applying via mail.
- Applying online. You can send your application in online and get an EIN number back within an hour. Once an EIN has been acquired, you’ll be able to immediately apply for business bank accounts and send in tax payments. You can apply for your Tax ID (EIN) online here.
- Applying via fax. You can fax your application in and get an EIN number back within four days. Applying for an EIN via fax can be unreliable as it isn’t always possible to know whether the fax was truly delivered. Further, if the application is not correct, you may need to correct it and wait an additional four days.
- Applying via mail. You can send your application in via mail. This application may take up to six weeks to be processed. If there are errors in the application, you may need to wait an additional six weeks. Your EIN number will be returned to you through the mail, and you’ll be able to use it immediately upon receipt – however, this is the option with the longest possible wait time.
For most individuals, applying online will provide the fastest, simplest solution. There are no advantages to applying via fax or applying via mail because ultimately you will achieve the same end result.
6. Do I Need an EIN to Open a Bank Account for an LLC?
Opening a business bank account for an LLC requires an EIN. Without an EIN, you also can’t access many options for a business loan or a business credit account.
With the right online service, you can acquire an LLC tax ID number within an hour. Once you have your LLC tax ID number in hand, you can start business accounts, procure business loans and pay business taxes.