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 an EIN:
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
Real estate mortgage investment conduits
If you answer yes to these questions, your business needs an EIN.
Benefits of Having an EIN
There are several reasons to get an EIN, even if you’re not required to have one. For example, opening a business bank account is often required, which creates separation between your business and personal finances. In addition, creditors and the IRS will identify your business by your EIN instead of your social security number.
It also helps establish business credit, boosting your access to financing. And if you do end up hiring employees in the future, you’ll already have your EIN and be ready to go.
What Do I Need to Get an EIN in Alaska?
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:
Your local government may require certain tax registrations as well.
What's the cost associated with getting an EIN for my LLC in Alaska?
Securing an EIN from the IRS for your LLC in Alaska doesn’t incur any fees; it’s a free service.
How long should I expect to wait to receive my EIN in Alaska?
If you apply online, you’ll often receive your EIN instantly upon finishing the online process. Fax applications generally take up to four business days, whereas mailed applications might take 4-5 weeks.
Instead of an EIN, can I use my personal Social Security Number (SSN) for my Alaska LLC?
While some sole proprietors use their SSN for business, it’s advised that LLCs acquire an EIN for both personal privacy reasons and certain business necessities like hiring.
Do I need to renew my EIN annually in Alaska?
No, once a business entity has been assigned an EIN, it remains valid indefinitely. However, significant changes in ownership or structure might necessitate a new EIN.
Can individuals not residing in the U.S. obtain an EIN for an LLC they've set up in Alaska?
Absolutely, non-U.S. residents can secure an EIN for their Alaskan LLC. If they don’t possess a SSN or ITIN, they might need to apply using the fax or mail method.
Are there unique state-related requirements in Alaska for EIN applications?
The process to get an EIN is federal, so it remains consistent across states. Nevertheless, once you have your EIN, it’s essential to check for any state-level requirements specific to Alaska.