There are several strategic steps to successfully apply for an EIN number online for your LLC startup. Typically, obtaining an employer identification number (EIN) is an essential step for how to form an LLC. This nine-digit tax number is analogous to a social security number for your business. Issued by the IRS, this number is fairly easy to obtain. Nevertheless, if you are starting a new business, you need to be well-informed about the application process. For instance, there are several different application platforms that you can utilize. These include online, fax, mail, and telephone. Read on to learn about how to successfully apply for an EIN number online for your LLC startup.
Evaluate Your Eligibility
Before you can begin the EIN application process, you need to evaluate your eligibility. For instance, you can only apply for an EIN online if your principal business is located within the United States or U.S. Territories. If your LLC is located in international territory, you must apply for your EIN over the telephone. In addition, you must have a valid Taxpayer Identification Number to complete your application online. Understand that you are limited to one EIN per responsible party daily. Ultimately, this is the person who controls the entity and goes on file with the IRS. The responsible party must be an individual, as opposed to an organization unless it is a government entity. It is crucial to evaluate your eligibility before filling out your EIN number application.
Identify Your LLC Legal Structure
Next, you need to identify your LLC legal structure. If you ever need to file your taxes for your LLC online, you will need an EIN number to do so. If you are filling out your EIN application online, visit the corresponding IRS webpage. This page prompts you to select the legal structure of your business, at which point you choose “Limited Liability Company (LLC).” Click “Continue” and read over the information outlining an LLC. On the next screen, you need to identify how many members you have and where your business is physically located. It’s important to note that if your LLC only has one owner or member, you may not need to apply for an EIN as long as you report your business to the IRS as a “disregarded entity.” In this situation, you would use your social security number for tax purposes. When filling out your EIN application, it is essential to identify your LLC legal structure.
Select Your Reason For Applying
Once you have identified your LLC legal structure, you need to select your reason for applying for an EIN. If you are an entrepreneur, you will likely choose “Started a new business” from the bullet points. However, you may also be requesting an LLC EIN number for banking purposes, purchased active business, or if you hired employees for a single-member LLC. Furthermore, if you are changing the type of organization you currently operate, then you will need a new EIN. For instance, if you are switching from a sole proprietorship to a partnership, you would choose “Changed type of organization.” However, typically for starting a business, you will choose this option. After identifying your LLC structure, you must select your reason for applying to obtain your EIN number.
Authenticate Your LLC With A Responsible Party
After you have selected your reason for applying, you need to authenticate your LLC with a responsible party. To do this, you need to enter a designated contact for your business. The IRS will consider that person responsible for tax information. If your LLC is classified as a sole proprietorship or partnership, an individual will typically act as the primary member contact. However, designate a corporate officer as the responsible party if your LLC is taxed as a corporation. Once you’ve identified the type of party, the next screen will prompt you to input their name and either Social Security Number (SSN) or Individual Tax Identification Number (ITIN). Do not use any punctuation other than a hyphen and an ampersand when inputting this information. Authenticating your LLC with a responsible party is an imperative step in the EIN application process.
Provide LLC Address And Details
If you have authenticated your business, you need now need to provide an address and details about your LLC. You’ll need to enter a physical location within the U.S. that is not a P.O. box. The only special characters permitted in their entry fields are hyphens and back slashes. Then, you will be prompted to enter your LLC’s legal name, location, and start date. If you have a trade name or doing business as name that is different from the legal name, you will also be required to input this information. Next, you answer a series of bulleted yes or no questions regarding your LLC followed by a its purpose. Once you have provided your LLC’s address and details, you are ready to confirm your EIN number.
There are several comprehensive steps to successfully apply for an EIN number online for your LLC startup. You may need an EIN in the future to streamline accounting for LLC methods. First, you need to evaluate your eligibility to determine if an online application is right for your business. Next, open the application and identify your LLC legal structure. Then, you need to select your reason for applying. On the next page, authenticate your LLC with a responsible party. Finally, you need to provide LLC address and details before you can confirm your EIN number. Consider the steps mentioned above to successfully apply for an EIN number online for your LLC startup.