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 Louisiana?
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 Louisiana
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 Louisiana Taxes
You also may need to register for business taxes in Louisiana.
If you have employees, you’ll need to register to withhold state income taxes with the Department of Revenue. In addition, you can 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 Workforce Commission if you have employees.
Your local government may also require tax registrations.
How much does it cost to get an EIN for my Louisiana LLC?
If you apply directly with the IRS, there’s no fee involved in obtaining an EIN.
How quickly can I expect to get my EIN in Louisiana after applying?
If you apply online, you’ll generally receive your EIN instantly upon completion. Applications sent via fax can take around four business days, and mailed applications might take up to 4-5 weeks.
I’m a sole proprietor; can I use my personal SSN instead of getting an EIN for my Louisiana LLC?
While some sole proprietors do use their SSN, obtaining an EIN for an LLC ensures better identity protection and often meets the requirements of banks and other institutions.
Can a non-U.S. resident apply for an EIN for their Louisiana-based LLC?
Absolutely. Foreign individuals or entities can obtain an EIN for their Louisiana LLC, even without an SSN or ITIN. The process usually involves mailing or faxing Form SS-4 to the IRS.
Are there any special EIN considerations or requirements for Louisiana LLCs?
While the EIN application process is consistent nationally since it’s managed by the IRS, once you’ve obtained your EIN, it’s vital to familiarize yourself with Louisiana-specific tax and business regulations.
If I make major changes to my Louisiana LLC, like a name change, will I need a new EIN?
Not always. Some changes to your LLC, such as an address change, don’t require a new EIN. However, significant structural changes might. It’s advisable to consult with a tax expert in such situations.