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 Nebraska?
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 Nebraska
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 Nebraska Taxes
You also may need to register for business taxes in Nebraska.
If you have employees, you’ll need to register for a Nebraska tax ID number to withhold state income taxes, which you can do with the Department of Revenue. You can also register for sales tax on the same site if you sell taxable goods or services.
If you have employees, you must also register for unemployment taxes with the Department of Labor.
Your local government may also require certain tax registrations.
Even if your LLC does not need to obtain an EIN in Nebraska, 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.
How much does it cost to obtain an EIN for my Nebraska LLC?
There’s no charge when applying for an EIN directly through the IRS.
How quickly will I receive my EIN in Nebraska after application?
If you apply online, you’ll generally get your EIN immediately after a successful submission. Fax applications can take about four business days, and mailed forms might take 4-5 weeks.
Can I use my personal SSN for my LLC's activities instead of an EIN in Nebraska?
While some sole proprietors do use their SSN for business purposes, it’s advisable for LLCs to have a separate EIN. This approach ensures privacy, distinguishes personal and business finances, and meets many business requirements.
Once my Nebraska LLC has an EIN, will I need to renew it at intervals?
No. Once you have an EIN for your LLC, it remains valid indefinitely unless there are significant structural or ownership changes.
Can non-U.S. citizens secure an EIN for their LLC based in Nebraska?
Yes, foreign individuals can obtain an EIN for their Nebraska LLC. They can apply even without an SSN or ITIN, typically via fax or mail methods.
Are there Nebraska-specific steps or regulations tied to EINs that I should be aware of?
Although the EIN application process is a federal procedure via the IRS, you should be informed of any Nebraska-specific business or tax obligations once you’ve acquired your EIN.