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 Indiana?
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 Indiana, 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 any associated fees when applying for an EIN for my Indiana LLC?
No. Acquiring an EIN directly from the IRS is entirely free.
After application, how long should I wait to receive my EIN in Indiana?
If you apply online, you will usually receive your EIN immediately upon submission. For faxed applications, the wait is approximately four business days, whereas mailed forms might take 4-5 weeks.
As the only member of my Indiana LLC, can I just use my SSN instead of obtaining an EIN?
While some single-member LLCs operate using the owner’s SSN, it’s often recommended to secure an EIN for various business and security reasons for your Indiana LLC.
Can a foreign individual or entity secure an EIN for an Indiana LLC?
Yes, they can. Foreign nationals or businesses can apply for an EIN for their Indiana LLC. This can be done even without an SSN or ITIN, usually by mailing or faxing Form SS-4.
Are there any Indiana-specific regulations or rules regarding EINs?
While the EIN process itself is governed at the federal level by the IRS, once you’ve obtained your EIN, it’s essential to be aware of any specific business and tax obligations in Indiana.
If I make significant changes to the structure of my Indiana LLC, will a new EIN be required?
Not always. Minor changes won’t typically require a new EIN. However, certain significant structural changes might. Always consult a tax expert in cases of doubt.