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 Missouri?
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 Missouri, 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.
Does it cost anything to get an EIN for my LLC in Missouri?
No, applying for an EIN directly through the IRS is free of charge.
How long after my application will I receive my EIN in Missouri?
Online applications generally provide an immediate EIN upon successful completion. If you opt for fax, it might take about four business days, while mailed applications can take between 4-5 weeks.
Can I use my personal SSN in place of an EIN for my LLC's operations in Missouri?
While some sole proprietors do use their SSN for business, for an LLC, it’s highly recommended to obtain an EIN. This ensures personal privacy, a clear distinction between personal and business finances, and meets certain business regulatory requirements.
Once issued, does the EIN for my Missouri LLC ever expire or need renewal?
No, an EIN does not expire. Once you’ve received an EIN for your LLC, it remains valid indefinitely unless there are significant changes in your business structure.
I'm not a U.S. resident. Can I still obtain an EIN for my Missouri LLC?
Yes, foreign individuals can apply for an EIN for their Missouri LLC. They can proceed even if they don’t have an SSN or ITIN, typically through fax or mail.
Does Missouri have any unique steps or regulations regarding EIN applications?
The EIN application process is a federal procedure managed by the IRS. However, once you have your EIN, you should be aware of any Missouri-specific business regulations or tax obligations.