Federal Tax ID Number (EIN): Form an LLC (9/11)
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- เผยแพร่เมื่อ 4 พ.ย. 2015
- ▶▶ Learn more about LLCs: llcuniversity.com ◀◀
This video explains:
- What are EINs used for
- What does an EIN look like
- How much does an EIN cost
- How to obtain an EIN
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-- FEDERAL TAX ID NUMBER (EIN) --
A Federal Tax ID Number is issued by the IRS to business entities.
It is also known as an EIN, or Employer Identification Number.
For simplicity, we will refer to it as the EIN.
An EIN is to a business what a Social Security Number is to an individual.
It basically identifies your LLC to the IRS.
Even though it is called an Employer Identification Number, it does not mean that you have to have employees.
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-- WHAT ARE EINs USED FOR? --
EINs are used for:
- Opening business checking, savings, or investment accounts.
- Filing taxes.
- Handling employee payroll (if applicable).
- Obtaining business lines of credit or business loans.
- Obtaining credit cards in the name of the LLC.
- Applying for business licenses.
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-- WAIT FOR LLC APPROVAL --
You must wait until your LLC is approved by the state before obtaining your EIN.
You do not want to have any issues with an EIN assigned to the wrong LLC (dealing with the IRS to cancel an EIN is a pain in the neck).
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-- WHAT DOES AN EIN LOOK LIKE? --
An EIN is similar to a Social Security Number in that it has 9 digits.
To differentiate an EIN from an SSN, there are 2 digits followed by a hyphen and then 7 more digits.
An EIN will look like this: 68 - 3302189
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-- HOW TO OBTAIN AN EIN --
EINs can be obtained in 3 ways: by mail, by fax, or via the IRS’s online application.
An EIN by fax takes 4 days. Too long.
An EIN by mail can take up to 4 weeks. Way too long.
An EIN by online application takes 15 minutes.
Your EIN will be issued immediately after you answer all of the questions in the online application.
You will then be able to save and print your new EIN, as well as your Confirmation Letter. Make sure to save copies of these and keep them with your LLC documents.
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-- HOW MUCH DOES AN EIN COST? --
An EIN is free.
No, really, they’re completely free.
You can obtain an EIN from the IRS.
Unfortunately, many websites will charge you $50 - $100.
(We show you how to obtain your EIN for free when you join the LLC Formation Course: llcuniversity.com)
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Hey folks, make sure to check the site for most up-to-date information: www.llcuniversity.com/irs/ein-for-llc/. Or select your state and start forming your LLC with our free guides: www.llcuniversity.com/
Your channel has been SO HELPFUL!!!! Thank you!!!
So happy to hear that!! You're very welcome! :)
Bless you for this information and blessings to all who are trying to create businesses for themselves may God bless your business and make you fruitful and much success!!!
Thank you very much!!
Hi, I have and LLC with S-Corp status to du e-commerce and I want to create a deferent LLC underneath my first LLC with the s-Corp to do transportation. Can I apply for S-Corp status for the second LLC or am I ok just leaving it as an LLC only? This second LLC will be own by my S-Corp.
Second question.
My e-comerce LLC is not so much at risk of a legal action against, my transportation company is. Am I ok ensuring only the second company? If so would the insurance cover me when driving around in the company car or do I need to insure the car separately? Or do I need to insure both of the two countries?
I guess I'd first ask why you need to your first LLC to own the second one? Have you spoken to an accountant about this? Regarding your second question, I can't answer this one for you. Apologies I can't be more helpful here. These questions are best for an attorney (and accountant) who can really dive into your situation.
Very helpful channel. Quick question - does obtaining an EIN for a single member PLLC change the disregarded entity status ?
Hey Debbie, no. A Single-Member LLC (or PLLC) will still be disregarded. We have more info here: www.llcuniversity.com/irs/disregarded-entity-llc/. Hope that helps.
Thank You!!!
You're very welcome :)
2 thumbs up for your videos websites answers thankyou
Thanks Anthony!
Question; I started my own small business doing handiman work and I am self employed. Why would I need an EIN?
Hey Marcos, did you form an LLC? If so, you'll need the EIN to open an LLC checking account. You could just use your SSN (please call bank and check though, as it varies), but many people do prefer to use the EIN instead of the SSN (when possible) for extra identity protection. Hope that helps.
Hello, Thank you for all the information. I have a question, i"m currently and will continuously use Northwest registered agent for my publication ad, and I'm applying for Tax of authority/seller's permit at NY, planning to sell online and do not have a physical location for the store, can I use Northwest registered agent as my store physical location? what is your advice?
thank you.
They prefer that you use your own NY address for seller's permit and other registrations. Hope that helps.
thank you thank you....appreciated it.@@llcuniversity
I have registered a llc named and the activity name is different, But gathering all that I need to start that activity is taking too long. So I want to start another activity but I do not want to create another LLC again so I decide to add this new activity to the llc I already have. I was told that I can have many activities under the same llc. The new activity is car wash. I just want to add it as new activity under the same LLC. What do I do towards the IRS?
Hi Yawu, you just need to submit an initial activity/purpose when applying for your LLC's EIN Number. You don't have to update it as your LLC's business activities change. So if you have an LLC and it has an EIN, you're free to engage in any business activities you'd like. Hope that helps.
Hi, can I work as an independent contractor on a suspended EIN?
I have an old business entity that I haven't used in years. thanx!
Hey Rod, we're not sure about this. Best to talk to the IRS or a tax professional. Thanks for your understanding.
I created my llc in Florida and every time I go online to get my ein it says error,so I can't get my ein..any advice
Hey Julio, any luck... how did you make out? Which error message are you getting?
I'm trying to have my car shipped to a different country and their asking me for a EIN and I don't even have a business. Does that make sense?
Hmmm... I don't know anything about car shipping. Pretty sure you can use your SSN, or get an EIN from the IRS that is attached to you personally as a Sole Proprietorship... either way, seems weird to be asked that. Apologies I can't be of more assistance. Make sure you're not getting scammed.
I just faxed the SS4 form as I'm a non resident. How long it would take to get the EIN? IRS told me it's going to take 45 business days
I know it's super long, but 45 business days is correct right now because of delays from covid. Hope that helps. After 45 business days if you haven't received a fax yet, you can call the IRS and request an EIN Verification Letter (147C). We have instructions here: www.llcuniversity.com/irs/ein-verification-letter-147c/
question: I got an EIN# a month before create my LLC. I'm a single member in my LLC do I have to still close my EIN# and create a new one?
It depends. Did you select "limited liability company" in the beginning? If yes, did you enter your LLC name exactly in the IRS EIN application as it shows in your approved LLC documents?
@@llcuniversity I did not enter my LLC in the IRS EIN. For what I found today. They said after approved for my LLC, it comes with an EIN#. correct?
@@overcomeevilwithgood - Who is "they"? The IRS? If so, that's not correct. An LLC doesn't come with an EIN, unless you (or someone you hired) applies for one. It sounds like the first EIN may be "attached" to you as a Sole Proprietor. Please see this page for better instructions: www.llcuniversity.com/irs/ein-for-llc/
I'm from IL. Can I run a small business from home with just the tax id? What will happen if I apply for the LLC and the business doesn't go well?
Hi Ivan, do you mean run a business from home (as a Sole Proprietorship) with just an EIN or an SSN? Either way, both answers are yes. For your second question, it would be best to dissolve the LLC and close the EIN.
LLC University Yes from home with a tax id only. I was thinking of running the small business from home and if it does well them applying for the LLC.
I see. Yes, you can certainly run a Sole Proprietorship (with an EIN) from home, and then later form an LLC.
If a company mistakenly used an EIN for a sole proprietorship and filed for an LLC in a state would they need to reapply for a new EIN and refile the existing llc with the state or would they need to form a new LLC as well.
Hi Salvatore, I think I know what you're asking, but not 100% sure I follow you. Can you rephrase your question and break up the sentences with punctuation. That'll help. Thanks!
@@llcuniversity a LLC that was filed in Pennsylvania in Nov 2019 used a preexisting Ein created in 2014 that was never used for a business idea in order to save time to launch with 2 months to go for a hard jan 1st deadline. It was later found out that the Ein was registered as a sole prop. There have been no tax returns filed on the Ein yet except quarterly taxes for 2019. Did that clarify the issue?
Yes, it does help. Thank you. You don't have to re-file the LLC. It just used the wrong EIN. I'd get with an accountant have them square up the details and if anything needs to get filed to clarify that. We're not sure. So likely a correction of some sort needs to be make (ask accountant for help) and then you can get apply for an EIN for the LLC. Since it doesn't really have one yet. It was just using the wrong one. Hope that helps.
hello when they return the confirmation by fax they only send you a page? it is because my fax only allows me to receive one sheet. Thank you
Did you receive an EIN Confirmation Letter (CP 575) by fax or just a copy of the SS-4? And do you have an SSN or ITIN or neither?
@@llcuniversity I do not have snn and I am not a resident of the usa. I am following the steps you list on your site www.llcuniversity.com/irs/how-to-apply-for-ein-without-ssn/
and I see that two faxes are received. But I am using a free fax that only allows me to receive one page in each fax. So I need to know how many sheets arrive from EIN Confirmation Letter (CP 575) by fax and the copy of the SS-4
Okay, you're all good then. They just fax you back the SS-4 with the EIN written somewhere on the form. Did you get that? The EIN Confirmation Letter (CP 5757) will be mailed to you in about 4-6 weeks... but please allow a bit more time because of covid-19. Are you visiting the US to open a bank account or will you open a bank account online?
@@llcuniversity i plan open bank account via online, mercury it a good option. i believe. A question if I put the address in another state where the LLC will be to create the number ein and will it affect anything? It's just that my sister lives in another state where I plan to open the LLC and I want her to receive the documents. Thank you
@@crazymusicnetwork8844 - Okay, nice. Yes, Mercury is a great choice. Are you asking about the address to use on the SS-4? If so, that address can be different than the LLC's address. The IRS doesn't really care since the address is a "mailing address" to the IRS and not a "physical location" address.
Dear Matt, I hope you doing well!
As a non-US citizen and non-resident looking to create an LLC, do I need to apply for ITIN before I get the EIN, and why I need it, and what's the difference between EIN and ITIN and which one I need to create the LLC, and can I assist for ITIN by Northwest?
Thank you very much for everything you share to us and I am really sorry to waste your time with my several questions. Wish you have a good day man!
Hi Kareem, no, you don't need an ITIN before getting an EIN. An EIN is the identifying number for the LLC. An ITIN is necessary if you personally have a US tax filing obligation (which is not likely). No, Northwest doesn't provide an ITIN as a service. Hope that helps.
@@llcuniversity So that means that I don't need for ITIN?
Thank you so much dear Matt. For sure your replies always helping 🙂🙂
Correct, you don't need an ITIN.
Ran into an issue where a new LLC was told by an Irs phone rep that they could use their existing Ein they never used from years prior so long as it was clean. They've operated their first year so far. How do you clean that up
Not sure we understand the question. If the LLC already has an EIN then it sounds like that EIN can be used. Also not sure what you mean by "so long as it was clean". Thanks.
The llc was registered in Nov 2018 and the Ein was created in Nov of 2014 but never used or had any business transacted. The company filed form 2253 but didn't hear back. When they contacted the IRS they weren't able to verify receipt of the form but let the business know that their Ein was set up as a sole prop.
It sounds like that initial EIN was not applied for by the LLC, however, we can't troubleshoot something of this nature. Hopefully you're able to get it sorted. Thank you for your understanding.
@@llcuniversity correct. It was not applied for by the llc. Any opinion on which way to go direction wise. Trying to figure out if there's a revenue procedure for a mistake like this. It's happened before from what I've researched but I couldn't get a clear answer. You mentioned the pain of having the wrong Ein attached to the LLC in the video and I was wondering if you've encountered it before
In the case of an EIN that is approved to a non-existent LLC I guess a "minor annoyance" would have been a better word to use in the video. In that case, someone can cancel the EIN and just get a new one. However, things are likely not that straight forward if there are years of history attached to an EIN.
If I get an EIN for a multi-member LLC for an online clothing brand - would I need a separate EIN if I ever decide to open a brick and mortar location - to be able to sell online and from an actual storefront? My EIN is for the state of Florida FYI.
Nope, there would be no need for another EIN. Your LLC will just have one EIN, no matter what it does. Also, the EIN is a federal number from the IRS. It's not a state number from Florida.
@@llcuniversity Preciate the info. Yeah, I didn't mean to say the state of Florida EIN. I know it's for the IRS. What I meant was Florida was the state where we obtained the LLC just in case - because I know some states may have different requirements. All in all, thanks for the reply.
@@Villeins09 - Ah, gotcha! Thanks for clarifying. You're welcome :)
@@llcuniversity Thank you. Also, just for clarification - when completing the EIN form - if someone is listed as an AGENT and someone else is listed as AMBR for the company does, that make the company a multi-member LLC, or a single-member LLC?
The number of members is set in the LLC Operating Agreement. Meaning, the Operating Agreement governs the LLC. Just because someone is a Registered Agent for your LLC, doesn't automatically make them a Member. Having said that, the Registered Agent can also be a Member. What is your desired setup?
Can you give me the website for Tax id !
Thank you !
Sure thing! www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
I was told by the tax law dept. of the IRS that a single-member llc is a disregarded, 'pass-through' entity which doesn't require an ein number. The rep. with whom I spoke also said that one may use his or her ssn in lou of an ein. Perspective about this?
Hey Jon, everything you've mentioned is correct. Single-member LLCs (unless elected to be taxed differently), are treated as disregarded entities and you'll be "taxed as" a Sole Proprietorship. However, you need an EIN to open a bank account in the LLC's name, and anytime I can use my EIN instead of my SSN, I'm all for it. I prefer the privacy. Again, yea, it's true, but the EIN is free from the IRS and even after you get it, you can still use the SSN if you prefer. Have you formed your LLC yet? We have guides for all states, as well as step-by-step instructions on how to get an EIN. Hope that helps :)
I'm yet to form it.. Thanks for the insight.. You obviously have legal training.. What's your legal background?
I'm not a lawyer. At least not yet lol. I'm just passionate about this stuff and have been an entrepreneur for 11+ years. I also have a knack for digging deep down rabbit holes, breaking down complex information, and then helping make it super easy and step-by-step for other people :) What state are you forming in Jon?
I'm Somalia And i whant Make Amazong saller. How i get Ein
In may country ? I'm seriously need
thank you Sir
Hi Redwan, we'll have a lesson on this soon. Check this link in about 2-4 weeks: www.llcuniversity.com/irs/how-to-apply-for-ein-without-ssn/ (it's not live yet). You need to complete Form SS-4 and fax or mail to IRS. You can't get an EIN online. In line 7b, enter "Foreign". Hope that helps.
LLC University group Respec 🙌
This link is rerror.
Matt Thankyou for you're helping. Before thes 4-2 weeks i need your'e help plz. I compelete this fourm SS4 then i confuse how to send email to fax. Then I use hello fax Mail to fax then My second problem was Contacting IRA I'll send my Ss4 Form Then I call this number IRA Ein outside us
0018008294933
But not talk human press 1 then 2, 3 not working. Contact me WhatsApp +252 63 4467788 or tell me any other contact whit you
Hey Redwan, the link will work in about 1 to 2 weeks. The article is being edited right now by our team and isn't live yet. If you just check the link in 1 to 2 weeks, it'll explain the process and walk you through the steps, including how to send a digital fax to the IRS. Hope that helps.
All of your videos have been exceptionally helpful, informative and saved me some money. Thank you. @rellsmybarber
You are very welcome Sherell!! Thanks for the nice comment :)