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All Part of the Process: Getting an EIN for Your LLC

By Arjun Mahadevan

Published on 12 Sep 2022 2 min read

The Internal Revenue Service (IRS) provides an Employee Identification Number (EIN) to all types of businesses to track their business activities to determine whether or not they are able to accomplish their tax returns.

If you have a limited liability company (LLC), you are required to obtain an EIN by the state in which the LLC was formed. This includes all instances where you have not filed for an EIN with the IRS. Failing to do so can lead to fines and penalties.

You may want to know more about getting an EIN for your LLC in such a case. Below are just some of the helpful steps to help you do just that.

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1. Identify Your LLC’s Legal Name

The first step in getting an EIN for your LLC is to identify your LLC’s legal name. This name will be used when applying for an EIN. It is possible to have a DBA (DBA is short for “doing business as”) name, but this name alone is not sufficient for EIN purposes.

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2. Pick a Tax Year

Your LLC must have a tax year. This means that you must assign a specific year in which your LLC will operate.

Depending on how your LLC is formed, the tax year may already be set. If this happens, you do not need to do anything here. For example, if you form your LLC in Montana, you will be given a tax year of your choice.

However, if you have not yet selected a tax year, you will need to do so before completing an EIN application.

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3. Applying for Your EIN

In order to apply for your EIN, you have to submit Form SS-4, which you can get from the IRS website. You have to submit this form online in order to obtain an EIN. Once you have submitted the form, your EIN will be issued, and you can use it on your tax returns and other business documents.

Keep in mind that you have to have a filing requirement in order to obtain an EIN. This is also true if you have an LLC based on the states that you are operating within. If your business falls within this category, then you will likely need to apply for an EIN.

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4. Completing Form SS-4

Unlike the application for an EIN, applying for an EIN for your LLC is just the state filing for an LLC. This means that the IRS does not require you to complete a questionnaire for a business you are filing for. In fact, the only thing you need to complete for your application for an EIN for your LLC is a Form SS-4.

You can get it from the IRS website. It is Form SS-4–Application for Employer Identification Number.

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5. Getting Your EIN

You will not be able to obtain your EIN immediately. You will have to wait for the IRS to process your application for an EIN for you. This can take 3 to 4 weeks, most of the time. So, if you need an EIN for your LLC immediately, it is best to apply for one in person.

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Conclusion

Getting an EIN is a fairly easy task. However, you still need to be careful because the IRS can penalize you if you do not have the EIN or if you do not use the EIN correctly on your tax return.

Take note of our pointers above and see to it that you accomplish every important step. Doing so will save you from any business hassle or penalties from the IRS in the foreseeable future.

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