ein number for llc

How To Get a Tax ID Number For An LLC

Many foreigners wish to direct and develop a business in the United States because of the numerous benefits and advantages that come with it. This is why many people are found asking about how to get a tax ID number for an LLC. If you are also one of those who are asking as to how to get a tax ID number for an LLC, you may also be interested in starting an LLC or any business in the United States. Before starting an LLC, you should keep in mind that you need to get an E2 visa first.

The E2 visa serves as the legal document that grants you permission to start, develop, and direct an LLC in the United States. All foreigners who wish to start a firm in the United States should also understand that one of the main requirements after obtaining the E2 visa is getting the tax ID number. If you want to start your own business, you need to get the appropriate tax ID number too. However, if you want to get employed, you need to get another tax ID number. If you want to know how to get a tax ID number for an LLC, read this blog carefully to understand the process in depth.

If you need help getting a tax id number for an LLC, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

An Overview of what a Tax ID Number is

To properly understand the core of how to get a tax ID number for an LLC, you should first understand what a tax ID number really is. Tax ID numbers are the numbers issued by the Internal Revenue Service (IRS) to those people who either wish to get employed in the United States or are interested to form a business in the United States. They are of five common types which include the following;

  1. Individual Taxpayer Identification Number (ITIN)
  2. Social Security Number (SSN)
  3. Employer Identification Number (EIN)
  4. Preparer Taxpayer Identification Number (PTIN)
  5. Taxpayer Identification Number for US Adoption (ATIN)

Out of these five types, only the first three are active.

While you are thinking about how to get a tax ID number for an LLC, you also need to know how these tax ID numbers can help you. Generally, tax ID numbers are given to those who are residents of the United States. However, those who obtain an E2 visa and are interested to form an LLC or get employment will need to get any of these tax ID numbers because it is required for filing tax returns and to claim treaty benefits.

If you want to get treaty benefits and file tax returns, you may be asking about how to get a tax ID number for an LLC. But before we go into the details of how to get a tax ID number for an LLC, you should first understand the ins and outs of the three active tax ID numbers.

1.    Individual Taxpayer Identification Number (ITIN)

One of the main types of tax ID numbers is the Individual Taxpayer Identification Number (ITIN). It is a 9-digit number that is granted to those dependent individuals who wish to come along with the foreign investors. They are those individuals who are residing in the USA without any E2 visa and are not eligible or authorized to work in the United States. They might be the family members of the foreign investor who has been given the SSN number. Moreover, if you are concerned about how to get a tax ID number for an LLC, you need to keep in mind that it is provided to dependent individuals and not to those who wish to start an LLC or business.

Such individuals are the ones who are willing to file their tax returns and require an ITIN number. Those who get the ITIN number can benefit from filing the taxes and obtain treaty benefits. Along with the dependent individuals, those who are not eligible to get a Social Security Number (SSN) are given ITIN numbers to fulfill the tax obligations. In order to obtain an ITIN number, you can fill form W-7 with all your genuine information and get the ITIN number in weeks. The ITIN number is provided by the Internal Revenue Service (IRS) after checking and verifying all the information.

2.    Social Security Number (SSN)

Another common type of tax ID number is the Social Security Number (SSN). These again comprise of 9-digit numbers and are required to fulfill tax obligations. These numbers are provided by the Social Security Authority (SSA) and are given to those individuals who wish to get employment in the United States. Generally, these people also have an E2 visa as they are considered residents of the United States.

Since these numbers are only given to the United States’ residents, you should know that temporary residents do not get these numbers. In order to get SSN numbers, you should fill form SS-5 properly to get the tax ID number easily. If you are asking about how to get a tax ID number for an LLC, you should know that SSN numbers are also provided to those individuals who wish to get employment in the United States, not to those who are interested in forming an LLC.

When you apply for a SSN number, the United States Citizenship and Immigration Services (USCIS) checks all the information you have provided and then, sends the SSN number after finding that the information is correct.

3.    Employer Identification Number (EIN)

The third and last active tax ID number is the Employer Identification Number (EIN). All those who are asking as to how to get a tax ID number for an LLC should read about the EIN number carefully because this is the tax ID number which is required to form a business or an LLC in the United States. If you are also looking to develop and direct a business and want to become an employer, you need to have an Employer Identification Number (EIN). This EIN number is also comprised of 9 digits just like the previous two tax ID numbers.

Additionally, an EIN number is the tax ID number that is provided if you are interested in forming a business of your own in the United States and not to get employment in a firm in the United States. Also, the tax ID number is also issued by the Internal Revenue Service (IRS) for organizations to file tax returns. Regardless of the type of business you require to form, such as a partnership, sole proprietorship, non-profit organization, LLC, corporation or any other organization, you are required to have an EIN number to pay your taxes. If you want to know the process behind how to get a tax ID number for an LLC, here’s a sneak peek into the process. You can fill Form 1041 with all your genuine information to get an EIN number easily. To know the entire procedure for how to get a tax ID number for an LLC, keep reading the blog.

If you need help getting a tax id number for an LLC, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

How to Get a Tax ID Number for an LLC?

To know the core of the question, “how to get a tax ID number for an LLC?”, you need to read this section very carefully, Now that you know that the Employer Identification Number (EIN) is only for those who a wish to start a business, develop or direct a firm, or are looking forward to start a corporation, LLC, non-profit organization, sole proprietorship business or a partnership business, all potential business owners may be looking forward to know the entire procedure.

Despite the type of business you wish to start in the United States, you should have a tax ID number for your business. If you are asking about how to get a tax ID number for an LLC, you need to follow the steps below to obtain a tax ID number for your LLC.

·      Step # 1: Look for Eligibility

The first and foremost step to get a tax ID number for your LLC is to see whether or not you are eligible or qualified for getting an EIN number. To start, develop and direct a business, you definitely require an EIN number. Therefore, you will need to see if you fulfill the following conditions or not;

  • Whether or not your business generates employment opportunities and pays up to $600 in a year
  • If you are planning to develop and direct a business entity
  • If you are required to file returns for tobacco, alcohol, firearms, and employment, along with other requirements
  • Whether you withhold taxes on income to aliens and non-residents or not
  • If you have formed a Keogh plan for your business
  • If you are operating any of the following organizations;
    • Plan administration
    • Real estates
    • Trust not owned by grantors yet are revocable
    • Real estate mortgage investment conduit
    • Nonprofit organization
    • Farmer’s cooperatives

·      Step # 2: Filling Out the Form

If you want to understand the core of how to get a Tax ID number for an LLC, you need to know that the main element is to fill out Form 1040. You have several ways for that; you can either send it through fax, mail it, or do it online and send it to the IRS department. After opting for any of the ways and choosing the most appropriate one, you can obtain the EIN number easily by filling out Form 1040. If you are visiting the Internal Revenue Service Department to fill out Form 1040, you should go to the office between 7:00 a.m.-10:00 p.m.

The application or the Form 1040 is not very easy to fill and therefore, it is better to hire a lawyer in this regard who can sit with you and help you in filling it properly. Also, you need to ensure that all the information you are going to provide in the form should be genuine and correct; otherwise, you will not be able to receive an EIN number seamlessly. After the IRS finds all the information correct and genuine and you meet their criteria, you will get the EIN number for your LLC. However, before that, you need to choose an appropriate way to send your EIN number.

·      Step # 3: Application Process

There are certain individuals who follow the old criteria and find it convenient to take the hard copy of Form 1040, fill it appropriately, and send it through mail to the Internal Revenue Service (IRS). However, there is another way of doing that too. You can also fax it and send it online to the email ID provided under the form. Additionally, you need to ensure that Form 1040 that you are filling for getting your EIN number is up-to-date. Check out the following addresses if you are mailing or sending Form 1040 by fax.

Those International applicants who are sending Form 1040 by fax need to send it to this number 859 669 5987. The ones who are US applicants and want to obtain an EIN number can fax the form on this number 859 669 5760. But if you are trying to send Form 1040 via mail, foreigner applicants need to send it to this address; Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH, 45999. Lastly, the ones who are residents and wish to obtain an EIN number via mail can send it to this address; Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999.

The Benefits of Having an EIN Number

If you want to explore as to how to get a tax ID number for an LLC, you should now understand that it is very essential to have an EIN number for starting your business. In addition to this, you can also enjoy several perks and take advantage of certain elements with an EIN number. Let’s explore the benefits you get by having an EIN number.

  • Having an EIN number can let you open a bank account for your business.
  • With an EIN number, you will easily be able to get a business license which will further make your firm more credible.
  • You will be able to file the EIN number electronically.
  • You will be able to file tax reports using the EIN number.
  • With an EIN number, you will be able to file all kinds of taxes, including state taxes, income taxes and others.

Common Mistakes when Applying for an EIN Number

Now that you know about how to get a Tax ID number for an LLC, you should also know that there are certain mistakes that some people make when applying for an EIN number. Therefore, we have assembled a few mistakes that are commonly made by individuals, ones which you must avoid doing. Those mistakes include the following;

  • When people request an EIN number, they often file the SS-4 form for the S-corporation. You need to understand that this is not the appropriate form if you want to direct and develop an S-corporation. Form 2553 is the suitable form if you wish to start an S-Corporation.
  • Often, some individuals forget to use the legal names in the form. This can put you in a lot of trouble; therefore, you need to ensure that you must put the full and legal names in the form.
  • In addition to using legal names, there is another common mistake done by people; they provide incorrect information which results in rejection of the application. All the information provided in the documents needs to be genuine; otherwise, you will have to fill the form all over again.
  • Often, some individuals end up filling the wrong information because of a lack of understanding. The forms include some complex and technical language; therefore, if you are also finding difficulty in filling them, you can ask a lawyer to help you out with it or can call the IRS representative.
  • Sometimes, applicants also forget using the EIN, ITIN and SSN numbers; you need to include them on Line 7b.
  • Not informing in case of changing addresses is again one of the mistakes done by the applicants. It is necessary to inform the authorities about the changing address as you receive the EIN number. You can make the appropriate changes using the Form 8822-B, specifically for changing the address.

Obtaining the EIN number is essential for every business entity. To avoid the mistakes and enjoy the benefits, you should obtain an EIN number promptly and take the necessary steps to obtain it if you are planning to start an LLC or business in the United States.

If you need help getting a tax id number for an LLC, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

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