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 New Hampshire?
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 New Hampshire
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 New Hampshire Taxes
You also may need to register for business taxes in New Hampshire.
If you have employees, you’ll need to register for unemployment taxes with the Department of Employment Security. New Hampshire has no personal income tax, so you don’t have to register for state tax withholdings.
Your local government may also require certain tax registrations.
Even if your LLC does not need to obtain an EIN in New Hampshire, 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 costs associated with acquiring an EIN for my New Hampshire LLC?
No, the IRS offers the EIN application service free of charge when you apply directly with them.
After applying, how quickly will I receive my EIN in New Hampshire?
If you opt for the online application, you’ll usually receive your EIN instantly upon successful submission. Fax applications take about four business days, whereas mailed applications can have a turnaround time of 4-5 weeks.
Can I utilize my personal SSN in place of an EIN for my New Hampshire LLC?
Though some sole proprietors might use their SSN for business transactions, it’s generally recommended for LLCs to obtain and use a distinct EIN. This ensures better privacy and clearer separation between personal and business finances.
Will there be a need to renew my LLC's EIN periodically in New Hampshire?
No. Once assigned, an EIN remains with your New Hampshire LLC for its lifetime unless significant structural changes occur.
Can non-U.S. residents obtain an EIN for an LLC set up in New Hampshire?
Yes. Foreign individuals can apply and obtain an EIN for their LLC in New Hampshire. Even without an SSN or ITIN, they can typically submit their application via fax or mail.
Are there any particular EIN-related regulations or steps specific to New Hampshire?
While the process to secure an EIN is standardized nationally by the IRS, it’s crucial to be aware of any New Hampshire-specific business or tax obligations post-EIN acquisition.