Do I need a tax ID number?
If your LLC or corporation does business of any kind, you will need to obtain an EIN. All corporations must have a federal tax ID number to do business, and there are only rare situations (a holding company that does not pay tax of any kind) where an LLC wouldn’t need an EIN. Your tax ID number will be required to fill out payroll reports, pay taxes, open a business checking account, etc. However, a sole proprietorship with no employees that doesn’t file any excise or pension plan tax returns doesn’t need an EIN. In this instance you would simply use your social security number in place of the EIN.
What is an EIN?
An EIN, also known as a Employer Identification Number, is a number assigned to a corporation or LLC by the IRS for purposes of taxation. Think of the EIN as a Social Security Number for your business. Most banks require that you obtain a EIN as a prerequisite to opening a bank account regardless of whether your company will have employees.
How do I get an EIN?
Keep it simple and hire Active Filings to incorporate your business, and we’ll acquire your EIN in 24 hours or less. When you order our Sprinter of Finisher plans, EIN obtainment is included. However, if you want to acquire an EIN yourself, you can do so for free. Simply visit the IRS website, complete a questionnaire, and if you have a US social security number you’ll have your EIN for free in about 10 minutes. You can also find IRS form SS-4 here. You can mail or fax the form in old school style if you wish, but filing online or hiring Active Filings to obtain your EIN is definitely the fastest and most efficient way. If you are a not a US citizen or do not have a social security number, the process can be much more time consuming.