What Are the Benefits to Filing for an EIN As an LLC?

A limited liability corporation is one in which the members aren’t personally responsible for any company liabilities or debt. Limited liabilities have the protections of a corporation but the flexibility of a partnership. If your business is listed as a limited liability corporation, you can benefit further by applying for an Employer Identification Number.

Benefits of Obtaining an Employer Identification Number

A tax number ID for an LLC provides several benefits. An EIN works much like a social security number does for an individual. It identifies the business so the owner or owners can perform certain tasks. An EIN allows business owners to open bank accounts and take out loans in the company’s name. It is a requirement if your company requires any specialty licenses or location-specific permits. Employer Identification Numbers are also important if you don’t wish to use your personal social security number on documentation and if you intend to hire employees and create a payroll system now or in the future.

How to Obtain an Employer Identification Number

It is relatively easy to apply for an EIN for an LLC. Before you begin your EIN application, you’ll need to have your business name established. You’ll also need the company’s address. Your business or legal residence must be within the United States or its territories. You will need to provide your personal social security number on your EIN application as well. While some people still apply for their EIN at the local Internal Revenue Service offices or by sending an application via postal mail, most business owners are now turning to the internet to finish their applications.

Getting an EIN Online

GovDocFiling can help you obtain your EIN online. Simply answer a few specific questions about your company — if you need help, try reading about DBA vs. EIN — and then submit your application. Once it is approved, you’ll receive your nine-digit number via email. With a wait time that averages just a few days, filing for an EIN number has never been easier.

Unlike other types of business entities, limited liability companies (LLCs) are regulated by state statute; forming an LLC varies depending on which state you live in. However, LLCs offer distinct advantages including pass through taxation and legal protections not afforded to partnerships or sole proprietors. After an LLC is established, and after articles of organization have been submitted, it’s wise to apply for an EIN for LLC. The benefits for filing an EIN for LLC will prove useful to you and your business as you grow.

Advantages of EIN for LLC

 An EIN, also called an Employer Identification Number, is used to perform several essential business tasks:

  • Banks and lenders use an EIN to open bank accounts or establish credit in the name of the business
  • Business owners can apply for local permits and specialty licenses
  • Hire employees and establish a payroll system
  • Use an EIN in lieu of a Social Security Number on various forms or documents

These are just a few of the benefits for filing for an EIN for LLC. Limited liability companies are a popular type of business entity because of these benefits, but especially because of their tax flexibility.

Don’t Wait to Apply for an EIN for LLC

Online applications are the fastest and easiest way to obtain an EIN for LLC. You can also apply by mail or the telephone, but these methods can take up to two weeks to process.

Once the Internal Revenue Service (IRS) receives your company’s EIN, it takes up to two weeks for the number to be logged in their permanent record. Don’t wait to apply for an EIN for LLC. Even if you don’t think you need one, it’s better to have this important tax ID and not need it, than to need it and not have it available in time to use on tax returns.