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.
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 Kansas?
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 Kansas
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 Kansas Taxes
You also may need to register for business taxes in Kansas.
If you have employees, you’ll need to register to withhold state income taxes with the Department of Revenue. In addition, you’ll register for sales tax on the same site if you sell taxable goods or services.
You’ll also need to register for unemployment taxes with the Department of Labor if you have employees.
Your local government may also require tax registrations.
Is there a charge to obtain an EIN for my LLC in Kansas?
No, when you apply directly through the IRS, there is no fee to get an EIN.
After applying, how soon can I expect to receive my EIN in Kansas?
Online applications typically provide you with an EIN instantly upon completion. For faxed submissions, it usually takes about four business days, while mailed forms might take 4-5 weeks.
I'm the sole owner of my Kansas LLC. Can I operate using my SSN instead of an EIN?
Even though some single-member LLCs do operate using the owner’s SSN, it’s generally recommended to get an EIN for enhanced protection and to fulfill certain business requirements.
Can a foreign entrepreneur obtain an EIN for an LLC located in Kansas?
Absolutely. Foreign individuals or entities can secure an EIN for their Kansas LLC. They can do so even without an SSN or ITIN, generally by faxing or mailing Form SS-4 to the IRS.
Are there any Kansas-specific rules related to EINs that I should be aware of?
While the EIN process is federally governed by the IRS, once you have your EIN, be sure to familiarize yourself with any Kansas-specific business and tax obligations.
In the event of major changes to my Kansas LLC, will I need to get a new EIN?
Not always. Minor changes, such as an address change, don’t necessitate a new EIN. However, significant structural shifts might. Always consult with a tax professional when in doubt.