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 Idaho?
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 Idaho
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 Idaho Taxes
You also may need to register for business taxes in Idaho. In addition, you’ll need to register with the Idaho Tax Commission if you have employees. You’ll also need to register for unemployment taxes with the Department of Labor.
You’ll need to register with the Idaho Tax Commission if you sell goods or services subject to sales tax. In addition, your local government may also require certain tax registrations.
Even if your LLC does not need to obtain an EIN in Idaho, 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 obtain an EIN for my Idaho LLC?
Applying for an EIN directly through the IRS is free of charge.
After applying, how long does it typically take to receive my EIN in Idaho?
For online applications, you often receive your EIN instantly upon completion. If you choose to fax your Form SS-4, it can take about four business days. Mailed applications might take up to 4-5 weeks.
As a single-member Idaho LLC, can I operate using my personal SSN instead of getting an EIN?
Some single-member LLCs do use the owner’s SSN for certain transactions. However, having an EIN for your Idaho LLC can offer additional privacy protection and ease some business processes.
Can non-U.S. citizens or entities acquire an EIN for an LLC based in Idaho?
Yes, foreign nationals or entities can obtain an EIN for their Idaho LLC. They can do so even if they don’t possess an SSN or ITIN, usually by mailing or faxing the Form SS-4.
Are there any specific EIN-related rules or guidelines in Idaho that I should be aware of?
While EIN is a federal matter governed by the IRS, once you’ve secured your EIN, you should stay informed about any particular business and tax obligations in the state of Idaho.
If I make changes to my Idaho LLC structure or operations, will I need a new EIN?
Not always. While minor modifications don’t usually necessitate a new EIN, certain significant changes might. It’s advisable to consult with a tax professional if you’re uncertain.