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 Montana?
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 Montana
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 Montana Taxes
You also may need to register for business taxes in Montana.
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.
Your local government may also require certain tax registrations.
Even if your LLC does not need to obtain an EIN in Montana, 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.
Are there any fees associated with obtaining an EIN for my Montana LLC?
No, there’s no cost when you apply for an EIN directly through the IRS.
After submitting my application, how long will it take to receive my EIN in Montana?
If you apply online, you typically receive your EIN instantly upon a successful application. Fax submissions usually take around four business days, and mailed forms can take between 4-5 weeks.
Instead of an EIN, can I use my personal SSN for business operations in Montana?
Some sole proprietors might use their SSN for business activities, but for LLCs, it’s strongly recommended to have a dedicated EIN. This approach ensures privacy, separates personal and business finances, and meets numerous business requirements.
Will my Montana LLC's EIN ever need to be renewed?
No. Once assigned, the EIN remains with your LLC indefinitely unless there are significant changes to the company’s structure or ownership.
Is it possible for non-U.S. residents to get an EIN for their Montana-based LLC?
Yes, foreign individuals can obtain an EIN for their LLC in Montana. They can apply even if they don’t possess an SSN or ITIN, usually through fax or mail methods.
Are there specific EIN-related rules or procedures unique to Montana?
While the EIN application is standardized nationally by the IRS, you should remain informed about any Montana-specific business or tax obligations after obtaining your EIN.