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 Jersey?
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 Jersey
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 Jersey Taxes
You also may need to register for business taxes in New Jersey.
If you have employees, you’ll need to register to withhold state income and unemployment taxes with the Division of Revenue and Enterprise Services. In addition, you can register for sales tax on the same site if you sell taxable goods and services.
Your local government may also require certain tax registrations.
Even if your LLC does not need to obtain an EIN in New Jersey, 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 associated costs in getting an EIN for my New Jersey LLC?
No, when you apply directly through the IRS, there are no fees for obtaining an EIN.
How soon can I expect to get my EIN in New Jersey after applying?
If you apply online, you typically receive your EIN immediately upon successful submission. Fax applications might take about four business days. In contrast, mailed applications can take 4-5 weeks.
Instead of an EIN, can I just use my personal SSN for my New Jersey LLC?
While sole proprietors may sometimes use their SSN for business purposes, it’s highly recommended for LLCs to have a separate EIN for reasons related to privacy, liability, and clear financial delineation.
Do I have to renew the EIN for my LLC in New Jersey periodically?
No, once your LLC in New Jersey obtains an EIN, it remains valid for the life of the business unless there are significant structural changes.
Is it possible for non-U.S. citizens to secure an EIN for their New Jersey LLC?
Yes, foreign nationals can indeed get an EIN for their LLC in New Jersey. Even without an SSN or ITIN, they can usually apply using fax or mail methods.
Are there any New Jersey-specific regulations I should be aware of concerning EINs?
While the EIN application process is standard across the U.S. through the IRS, you should be updated on any New Jersey-specific business or tax requirements after obtaining your EIN.