What is an EIN: EIN or Employer Identification Number, or FEIN (Federal Employer Identification Number), is a nine-digit number assigned to every LLC in the United States. EIN is also called FTIN or Federal Tax Identification Number. EIN is issued by Internal Revenue Service (IRS). It does not cost any money to obtain EIN.
Businesses use EIN to file taxes. EIN is a unique number all businesses receive from IRS to file various business taxes. In this article, you will read about how to get EIN from IRS or otherwise.
On this page, you’ll learn about the following:
Does an LLC Need an EIN?
Yes, all LLC corporation businesses must obtain the EIN sooner than later. Once you complete all the steps of forming the LLC, you can submit the EIN application to the IRS department. There are various LLC formation services that provide EIN without any hassle.
Based on the business structure, the requirement for the LLC EIN number will vary. Here, we have described the three most common LLC business types and their requirements for obtaining the EIN.
Sole Proprietorship: For the sole proprietorship business structure, the EIN number will not be needed if the company has no employee or is not involved in filing the pension tax returns. But, if your sole proprietorship LLC has employees working in it, the EIN number is mandatory.
Single-Member LLC: For single-member LLCs, you won’t have to get the EIN number in case the company is void of employees or does have an excise tax liability. But, if you have employees or plan to have some in the future, you need to get the unique number beforehand.
Multi-Member LLC: For multi-member, since you wouldn’t have the sole authority of the LLC, you need to have the EIN number for filing the partnership profit returns.
When Will the IRS Ask for an EIN?
Since all the taxation documents and reports are filed with the IRS, the government body will ask you about your EIN under certain circumstances. Here, we have discussed the occasions when you will have to display the number.
- If your LLC has employees, EIN is mandatory for tax filing and business tax returns.
- For multi-member LLC organizations, EIN is a must-draw the partnership return files.
- EIN is also asked when the Limited Liability Companies have excise tax filings.
How to Request an EIN?
Before you request the EIN, you must complete your LLC’s formation. Once the procedures are completed, you can move on to the filing process of the EIN. For this, you need to submit all the details to the IRS, including the type of business structure, the purpose of the EIN, the business formation date, and other such information pieces.
Following are the requirements you need to fulfill at the time of submitting the EIN application to the IRS:
- According to the online application process, the form must have the taxpayer’s name, identification number, and social security number of the general partner, the grantor, or the principal officer.
- The responsible party to manage all the notifications, meetings, and future procedures must be an individual for a private LLC.
Why Should the LLC Get the EIN?
You can enjoy several benefits once you get your EIN number. It will give your LLC business the last trump card to function in full mode without having to face any legal or judicial problems. Here are the further details of having the EIN after the formation of the LLC.
Helps in filing tax returns
First of all, with the EIN number, you will be able to file the tax returns easily with the IRS. In fact, all the business finances done by your LLC will be supervised with the EIN only, and hence, this will allow you to file the taxes properly without a miss.
Needed for hiring employees
For hiring the employees, all employers will need individual EIN numbers so that their payrolls can be set up every month. As for the business EIN, IRS will need this number for tracking the employee payroll taxes.
Maintains the corporate veil
With the EIN number, the LLC members will be able to protect their personal assets in case the business has been sued, or someone has raised a lawsuit. This is what a corporate veil means, which is essential for every LLC business.
Prevent any occasion of identity theft
For operating all the taxations and finances of your LLC, you will use the EIN. This way, your social security number can be kept safe from identity theft.
Helps in opening a business bank account
Since after forming the LLC, you will have to open business accounts, you will need the EIN number for the same. Also, for getting business credits and business licenses, you will need this nine-digit unique ID.
How to Find My EIN Number
You can find the EIN from tax return documents, from you bank account details (if used at the time of set up). You can also search for it through IRS helpline at 800-829-4933.
Before we delve into the specifics, let’s clarify what an EIN number is. An EIN, or Employer Identification Number, is a unique nine-digit identifier assigned to businesses, organizations, and certain individuals by the Internal Revenue Service (IRS) in the United States. Similar to a social security number for individuals, an EIN is essential for various financial and legal purposes, such as filing taxes, opening a business bank account, or hiring employees.
Now that we understand the significance of an EIN number, let’s discuss the various ways you can retrieve it.
First and foremost, if you have accessed or received any official IRS documents, such as tax forms or notices, the EIN number would typically be displayed prominently. It may appear anywhere on the document, including the top-right corner or in the header section. Keeping all relevant tax documents organized in a secure place not only ensures that you can easily locate your EIN number, but it also ensures that important information is readily available when you need it.
In case you don’t have any physical documents on hand, don’t worry! Numerous digital resources at your disposal can aid in finding your EIN number. The official website of the IRS is an excellent starting point, offering a variety of tools and information for taxpayers. Use their “Where’s My Refund?” service, designed for individuals, to access tax-related documents, including your EIN number if it’s applicable.
Additional online platforms, such as Govt Assist or EIN Assistant, can provide similar services by directing you to the appropriate resources on the IRS website. These websites are user-friendly and all you need to know is some basic information about your organization, such as the type of entity, the state in which it is registered, the name of the business, and your role within the organization. Simply answer the prompts and these services will assist you in finding your EIN number.
Another useful avenue to explore is reaching out to your organization’s banks or financial institutions. Frequently, banks require EIN numbers to open business accounts or facilitate financial transactions. By contacting your preferred banking establishment, their customer service representatives can either provide your EIN number or guide you through the process of obtaining it.
Lastly, if you’ve exhausted all other available options, don’t hesitate to contact the IRS directly. The IRS maintains a dedicated toll-free helpline for businesses and organizations, where IRS representatives are ready to assist you with any issues. Be sure to have your personal details handy so they can authenticate your identity, ensuring they provide accurate information regarding your EIN number.
In conclusion, locating your EIN number is a manageable task that can be accomplished through multiple channels. For convenience, either start by searching physical documents, explore the IRS website and its resources, engage with online platforms designed to assist you in finding your EIN, consult your financial institutions, or communicate with the IRS directly. Armed with this newfound knowledge, you’ll be well-equipped to find your EIN efficiently, avoiding any unnecessary delays in business operations, tax filings, or financial transactions.
Can I Get a Free EIN?
If you want your EIN sooner and that also without having to pay any type of fee, you need to sign up with the EIN assistant at IRS and follow the entire procedure for application. Only the US-based citizens can apply for the EIN number with the IRS. Also, you can only submit one application in a day. Once the entire form is filled and submitted, your EIN number will be displayed. As for applying via mail or fax, you need to download the SS-4 form and fill up the details before submission.
EIN is needed when you have employees in your business. If you are hiring an LLC service provider then EIN would be obtained by them on your behalf. However, if you want to obtain it by yourself then apply through the IRS. EIN is required to file your business taxes. You can also search for why you should obtain EIN on this site.