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Updated on August 17, 2023
How to Get an EIN for an LLC in Iowa
Do I Need an EIN?
Benefits of Having an EIN
What Do I Need to Get an EIN in Iowa?
How to Apply for an EIN in Iowa
Register for Iowa Taxes
FAQs
The Internal Revenue Service (IRS) uses your business’s employer identification number (EIN) to identify your company, much the way a Social Security number is used to identify individuals.
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
Estates
Real estate mortgage investment conduits
Non-profit organizations
Farmers’ cooperatives
Plan administrators
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.
It’s often required to open a business bank account. However, it creates separation between your business and personal finances because bankers, creditors, and the IRS will identify your business by its EIN rather than your personal Social Security number.
Also, it helps establish business credit, which will boost your access to financing. And, if you do 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 Iowa?
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
Business address
State in which your business is registered
Reason for applying
Main business activity
Products/services offered
Closing month of your accounting year
Contact phone number and email
How to Apply for an EIN in Iowa
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 Iowa Taxes
You also may need to register for business taxes in Iowa.
If you have employees, you’ll need to register to withhold state income taxes on the Connect Iowa website. You can also register for sales tax on the same site if you sell taxable goods or services.
Your local government may also require tax registrations.
FAQs
Are there any fees associated with obtaining an EIN for my LLC in Iowa?
No. When applying directly with the IRS, acquiring an EIN is free of charge.
How long will it take to receive my EIN in Iowa after application?
For online applications, you usually receive your EIN immediately upon submission. Fax submissions may take about four business days, whereas mailed forms can require 4-5 weeks.
I'm the sole member of my Iowa LLC. Can I use my SSN in place of an EIN?
Some single-member LLCs do use the owner’s SSN for certain transactions. However, it’s generally advisable to obtain an EIN for your Iowa LLC for better protection and ease of business processes.
Is it possible for a non-U.S. individual to obtain an EIN for their Iowa LLC?
Yes. Foreign nationals or entities can apply for and receive an EIN for their Iowa-based LLC. This is possible even without having an SSN or ITIN, typically by faxing or mailing the Form SS-4.
What Iowa-specific considerations should I be aware of regarding EINs?
While EIN acquisition is a federal procedure managed by the IRS, once you have your EIN, you should keep abreast of any state-specific tax and business duties pertinent to Iowa.
Do significant changes to my Iowa LLC mandate getting a new EIN?
Some major structural changes might necessitate a new EIN. However, updates like a change in address typically don’t. It’s always best to check with a tax expert if you’re unsure.
