By Jennifer Reuting,
author of Limited Liability Companies for Dummies™
For most, obtaining a tax identification number might sound ominous or at least will seem like a difficult or lengthy process. Luckily, this isn't the case! Your MyLLC.com® representative can in most cases get your EIN number to you the same day you order it!
A Tax Identification Number (Tax ID), also called an Employer Identification Number (EIN), is a nine digit number in the format "12-3456789" that is issued to businesses by the Internal Revenue Service. Virtually every company operating in the United States from Microsoft to the Mom n' Pop donut bakery on your corner has one of these numbers assigned to it.
What originally started out as a number that you would simply use to deposit your payroll taxes has become the de-facto equivalent of a social security number for an individual — only for businesses. In a time where numerous businesses can exist with the exact same name, Tax ID numbers serve the vital purpose of keeping them separate in the eyes of the government - and others!
Even if you are simply operating as a sole-proprietorship or general partnership, you will most likely need to obtain a Tax ID. For the most part, you need a Tax ID if:
Not only does the federal government use your Tax ID to identify you, but your state and local government, your creditors, banks and possibly your vendors, might too. You will often need to have a Tax ID number before you can do such things as open a bank account, hire an employee, pay payroll taxes or even apply for a state business license!
If you are operating as a sole-proprietorship or general partnership, you can apply for a Tax ID anytime. However if you are operating as a corporation or LLC, then you must wait until your articles of incorporation/formation have been approved in your state and you have received an official formation date from whatever state you're forming your business entity in.
The application process is generally pretty simple, but you will need to obtain some information beforehand, such as:
Once you have this information in order, you are now ready to apply for a Tax ID. The IRS gives you plenty of options when filing your Tax ID. The most common one is to obtain and file the IRS form SS-4 (Application for Employer Identification Number) and mail it in, but this can take weeks. By far, the easiest and fastest way to obtain an EIN is to order it through MyLLC.com® either when you order your corporation or LLC, or if your business entity is already formed, MyLLC.com® can usually have your EIN to you on the same day you order it!
In most cases, your Tax Identification Number will remain the same throughout the duration of your business. You will only need to obtain a new identification number under special circumstances.
If you own multiple corporations or LLCs, then you will need a different Tax ID for each entity. Also, if your company has subsidiaries, each subsidiary should have its own Tax ID. However, this is not the case for sole-proprietorships or general partnerships, only "incorporated" entities that you file with the state.
Keep in mind that you will not be required to file for a new tax identification number if:
You can always obtain your EIN yourself, but we (of course) recommend that you just let us do the dirty work for you. No matter what your situation, if you need an EIN and need it quickly, the professionals at MyLLC.com® are here to assist you. Contact Us!
