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 Hawaii?
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 Hawaii
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 Hawaii Taxes
You also may need to register for business taxes in Hawaii.
If you have employees, you’ll need to register to withhold state income tax on the Hawaii Tax Online website. You can also register for general excise tax, similar to sales tax, on the same website if you sell taxable goods or services.
Your local government may also require certain tax registrations.
Even if your LLC does not need to obtain an EIN in Hawaii, 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.
Are there fees involved in obtaining an EIN for my Hawaii LLC?
No, applying for an EIN directly through the IRS is free.
How long will it take to receive my EIN in Hawaii after applying?
Online applications generally offer an instant EIN upon completion. Fax submissions might take around four business days. If you mail your application, it can take 4-5 weeks.
I'm the only member in my Hawaii LLC. Can I use my SSN instead of getting an EIN?
While some single-member LLCs use the owner’s SSN for specific transactions, obtaining an EIN for your Hawaii LLC is often recommended for greater privacy and easier business processes.
Can foreign individuals or entities get an EIN for an LLC in Hawaii?
Absolutely. Even if they don’t have an SSN or ITIN, foreign nationals or entities can obtain an EIN for their Hawaii-based LLC, typically via mail or fax using Form SS-4.
Are there any unique EIN considerations or rules in Hawaii?
The EIN process is federally governed by the IRS. However, after you have your EIN, you should be aware of any specific tax or business obligations you might have in Hawaii.
If my Hawaii LLC undergoes major changes, will I need a new EIN?
Some significant changes to your LLC might necessitate a new EIN. However, minor changes like updating the business address typically don’t. It’s a good idea to consult a tax professional in such scenarios.