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Updated on July 27, 2023
How to Get an EIN for an LLC in Alabama
Do I Need an EIN?
Benefits of Having an EIN
What Do I Need to Get an EIN in Alabama?
How to Apply for an EIN in Alabama
Register for Alabama Taxes
FAQs
The Internal Revenue Service (IRS) uses your business’s employer identification number (EIN) to identify your company, much the way a Social Security number is used to identify individuals. An EIN is used for tax filing purposes, and when you form an LLC in Alabama, you’ll need to obtain an EIN.
Do I Need an EIN?
If your LLC has more than one member or if you are going to hire employees, you’ll need an EIN. But these aren’t the only factors. The IRS offers a test to determine if you need one:
Do you have employees?
Do you operate your business as a corporation or a partnership?
Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco, and Firearms?
Do you withhold taxes on income, other than wages, paid to a non-resident alien?
Do you have a Keogh plan?
Are you involved with any of the following types of organizations?
Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
Estates
Real estate mortgage investment conduits
Non-profit organizations
Farmers’ cooperatives
Plan administrators
If you answer yes to any of those questions, you need an EIN.
Benefits of Having an EIN
There are several reasons to get an EIN, even if you’re not required to have one. First, it adds a degree of separation between your business and personal finances. It’s usually required to open a business bank account.
Also, it will allow you to establish business credit, which can help you access future financing. Last, if you’re not hiring employees now but may be in the future, you’ll already have your EIN and be ready to go.
What Do I Need to Get an EIN in Alabama?
According to the IRS:
All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner, or trustor. This individual or entity, which the IRS will call the ‘responsible party,’ controls, manages or directs the applicant entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.
When you fill out the application, you’ll need the following:
Name, title, and Social Security number of managing member or owner
Business address
State in which your business is registered
Reason for applying
Main business activity
Products/services offered
Closing month of your accounting year
Contact phone number and email
How to Apply for an EIN in Alabama
The application is Form SS-4, and you can submit it via the IRS website. You can print the form or mail it. If you apply online, your EIN will be issued immediately.
Register for Alabama Taxes
You also may need to register for business taxes in Alabama.
If you sell goods or services subject to sales tax in Alabama, or if your LLC has employees, you’ll need to register on the MyAlabamaTaxes website. Registering on this site will register your business for both sales tax and employment taxes.
Find information on whether you need to register for Alabama taxes here.
Obtaining an EIN for your LLC in Alabama comes at no cost. The IRS offers the online EIN application service without charging any fees.
How long does it take to get an EIN in Alabama?
If you apply online, you will usually receive your EIN immediately upon completion of the online session. However, if you apply by fax, it typically takes up to four business days. Mail applications can take 4-5 weeks.
Can I use my Social Security Number (SSN) instead of an EIN for my Alabama LLC?
While sole proprietors sometimes use their SSN for business, it’s recommended for Alabama LLCs to get an EIN for enhanced personal privacy and to meet other potential business needs like hiring employees.
Do I need to renew my EIN annually in Alabama?
No, once an Alabama EIN has been issued to a business entity, it will not expire. The EIN will be associated with that business entity unless the business structure or ownership changes.
Can non-U.S. residents obtain an EIN for an LLC formed in Alabama?
Yes, non-U.S. residents can obtain an EIN for their Alabama LLC. They may need to apply using the mail or fax option if they do not have a SSN or ITIN.
Is there any state-specific requirement for Alabama LLCs when applying for an EIN?
The EIN application process is a federal procedure and remains consistent across states. However, after obtaining an EIN, ensure to check any specific state-level tax or business requirements in Alabama.
