EIN Meaning – What Is Employer Identification Number?

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.

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.

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.

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.

One of the first steps in finding your EIN is to check any documentation provided by the Internal Revenue Service (IRS) when you initially applied for your EIN. This includes your EIN confirmation letter, which is sent out after you successfully register for your EIN. The EIN confirmation letter will contain all the necessary information about your EIN, including the number itself and the legal name of your business.

If you’re unable to locate your EIN confirmation letter or if you never received one, there are other methods you can use to find your EIN. One option is to check any tax documents you may have filed, such as your previous tax returns or tax forms issued to you by vendors or clients. Your EIN should be listed on these documents, making it easy to find.

Another way to locate your EIN is to contact the IRS directly. You can call the IRS Business and Specialty Tax Line at 1-800-829-4933 and speak with a representative who can assist you in retrieving your EIN. Be prepared to provide personal information about yourself and your business in order to verify your identity before receiving your EIN over the phone.

For those who prefer to communicate with the IRS in writing, you can also request a copy of your EIN confirmation letter by submitting Form CP 575, which is a request for verification of EIN. Once the form is filed, the IRS will mail you a replacement EIN confirmation letter within four to six weeks.

Additionally, if you have a business account with the IRS online, you can access your EIN through your account. Simply log in to your IRS account and navigate to the “View EIN” section, where you can find all the information related to your EIN.

It’s important to note that your EIN is sensitive information and should be kept secure to prevent any potential identity theft or fraud. Be cautious when sharing your EIN with others and only provide it to reputable sources when necessary.

In conclusion, knowing how to find your EIN is essential for business owners and organizations. By utilizing the methods mentioned above, you can easily locate your EIN and ensure that you have all your tax information in order. If you’re ever unsure about where to find your EIN, don’t hesitate to reach out to the IRS for assistance.

In Conclusion

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.