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.
Also, it helps establish business credit, which will boost 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 Arizona?
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
State in which your business is registered
Reason for applying
Main business activity
Closing month of your accounting year
Contact phone number and email
How to Apply for an EIN in Arizona
The application is Form SS-4, and you can submit it via the IRS website. Alternatively, you can print the form and fax or mail it. If you apply online, your EIN will be issued immediately.
There is no cost to obtain an EIN, which never expires.
Register for Arizona Taxes
You also may need to register for business taxes in Arizona.
If your business has employees or if you sell goods or services subject to sales tax, known as a transaction privilege tax (TPT) in Arizona, you’ll need to register for withholding employment taxes and TPT taxes on the Arizona Business One Stop website.
You’ll also need to register for an unemployment tax account on the Arizona Taxes website if you have employees.
Your local government may also require certain tax registrations.
Does every Arizona LLC need an EIN?
While most Arizona LLCs will need an EIN, there are a few exceptions. For instance, a single-member LLC without employees or excise tax liabilities might not require one. However, it’s always a good idea to consult with a tax professional or attorney to determine the needs of your specific business.
How much does it cost to obtain an EIN for my Arizona LLC?
The IRS does not charge a fee to obtain an EIN. You can apply directly through the IRS website or by fax/mail for free. Beware of third-party services that may charge a fee to obtain an EIN on your behalf.
How long does it take to get an Arizona EIN after submitting my application?
If you apply online, you will typically receive your EIN immediately upon completion of the application. For fax applications, it usually takes about 4-7 business days. Mail applications might take 4-5 weeks.
Can I use my personal Social Security Number (SSN) instead of obtaining an EIN for my Arizona LLC?
While single-member LLCs without employees might be able to use their SSN for tax purposes, it’s often recommended to get an EIN for liability and identity protection. Additionally, many banks require an EIN to open a business bank account.
I have multiple LLCs in Arizona. Can I use the same EIN for all of them?
No, each LLC should have its own EIN, as it is a distinct legal entity. Each EIN corresponds to a specific business and its associated tax responsibilities.
What if I lose or misplace the EIN for my Arizona LLC?
If you’ve misplaced your EIN, you can call the IRS Business & Specialty Tax Line at (800) 829-4933. After verifying your identity, they will provide you with the number.
Does my Arizona EIN expire or need to be renewed?
No, once an Arizona EIN is assigned to a business, it does not expire and does not need to be renewed.