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 Georgia?
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 also require certain tax registrations.
Even if your LLC does not need to obtain an EIN in Georgia, 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.
How much does it cost to get an EIN for my LLC in Georgia?
The IRS provides EINs at no charge. So, applying directly through the IRS will not incur any fees.
Once I've applied, how long will it take to receive my EIN in Georgia?
If you apply online, you generally receive your EIN immediately after completing the process. Fax applications usually take around four business days, while mailed applications might require 4-5 weeks.
As a single-member LLC in Georgia, can I use my SSN instead of an EIN?
While single-member LLCs can use the owner’s SSN for certain transactions, acquiring an EIN can offer better privacy and facilitate various business processes.
Is it possible for non-U.S. residents or foreign entities to get an EIN for an LLC in Georgia?
Yes, foreign individuals or entities can obtain an EIN for their Georgia-based LLC. This can be done even without an SSN or ITIN, generally through mailing or faxing Form SS-4.
Does Georgia have any specific EIN-related guidelines or requirements?
While obtaining an EIN is a federal procedure managed by the IRS, once you secure your EIN, it’s crucial to be informed about any state-specific business and tax obligations in Georgia.
If there are changes to my Georgia LLC, will I need a new EIN?
Not all changes necessitate a new EIN. However, major structural changes to the LLC might. For clarity, consulting with a tax professional is advised.