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.
First, opening a business bank account is often required, and it adds a degree of separation between your business and personal finances. Bankers, creditors, and the IRS will identify your business by its EIN rather than your personal Social Security number.
Second, it helps establish business credit, boosting your access to financing. Third, if you 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 Florida?
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 Florida
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 Florida Taxes
You also may need to register for business taxes in Florida.
If you have employees or you sell goods or services that are subject to sales tax, you’ll need to register to withhold state income tax and unemployment taxes and collect and pay sales tax. You can register for all of those with the Department of Revenue.
Your local government may also require certain tax registrations.
Even if your LLC does not need to obtain an EIN in Florida, getting one is probably the best move for your business, its finances, and its future. Just be sure to fill out the forms correctly and keep your business on the path to success.
Is there a fee associated with obtaining an EIN for my Florida LLC?
No, the IRS does not charge any fee for applying for and obtaining an EIN.
After applying, how soon will I receive my in Florida EIN?
If you apply online, you’ll typically receive your EIN immediately. Fax applications take about four business days, while mail can take up to 4-5 weeks.
Can I use my personal Social Security Number (SSN) instead of getting an EIN for my single-member LLC in Florida?
While it’s possible for single-member LLCs to use the owner’s SSN for some transactions, it’s recommended to get an EIN for enhanced privacy and other business needs.
Can foreign owners obtain an EIN for an LLC based in Florida?
Yes, foreign entities or individuals can secure an EIN for their Florida LLC. This can be done even without an SSN or ITIN, generally through mail or fax using Form SS-4.
Do I need to renew my EIN annually or after certain changes to my Florida LLC?
No, once an EIN is issued, it remains with the business indefinitely. However, certain major structural changes to the LLC might require obtaining a new EIN.
Are there any specific Florida requirements after getting my EIN?
While the EIN is a federal identifier, having it might lead to other state-specific obligations, like registering for state taxes or acquiring necessary licenses and permits in Florida.
If my Florida LLC dissolves and I start a new one, can I use the same EIN?
Generally, no. A new LLC typically requires a new EIN, even if it has the same members or is involved in similar business activities.