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 Maine?
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 Maine
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 Maine Taxes
You also may need to register for business taxes in Maine.
If you have employees, you’ll need to register to withhold state income taxes with the Maine Revenue Services department. 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 Department of Labor if you have employees.
Your local government may also require tax registrations.
How much do I need to pay to get an EIN for my LLC in Maine?
Obtaining an EIN directly from the IRS is free of charge.
How long does it typically take to receive an EIN in Maine once applied?
If you apply online, you can usually get your EIN immediately after the application process. For fax applications, expect a response within four business days, while mailed forms may take 4-5 weeks.
Can I simply use my own SSN for my Maine LLC instead of getting an EIN?
While certain sole proprietors might use their SSN for business transactions, it’s generally advisable for LLCs to obtain a separate EIN. This ensures clear financial separation and meets various business requirements.
Is it possible for foreign nationals to obtain an EIN for their Maine-based LLC?
Yes, foreign individuals or entities can apply for an EIN for their LLC in Maine. They can still get an EIN even if they don’t have an SSN or ITIN, typically by mail or fax.
Are there any EIN procedures specific to Maine that I should be aware of?
While obtaining an EIN is a federal process managed by the IRS, it’s essential to stay informed about any state-specific requirements or regulations in Maine once you have your EIN.