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 Mexico?
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 Mexico
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 Mexico Taxes
You also may need to register for business taxes in New Mexico.
If you have employees, you’ll need to register to withhold state income taxes with the Department of Taxation and 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 New Mexico, 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 will it cost to secure an EIN for my LLC in New Mexico?
The IRS does not charge a fee for obtaining an EIN. Therefore, it’s a free service when you apply directly through them.
How quickly will I receive my EIN in New Mexico after application?
Online applications typically provide you with an EIN immediately upon successful completion. If applying by fax, the wait time is about four business days. Mailed applications can take 4-5 weeks.
Can I operate my LLC with my personal SSN instead of obtaining an EIN in New Mexico?
Although some sole proprietors use their SSN, for an LLC, it’s recommended to have a separate EIN. This ensures business privacy, separates personal from business finances, and meets other specific business requirements.
Does my EIN in New Mexico expire or need renewal after a certain time?
No, once your New Mexico LLC has been assigned an EIN, it remains valid indefinitely, unless there are major changes to your business structure.
Can non-U.S. residents obtain an EIN for their New Mexico LLC?
Absolutely. Foreign nationals can secure an EIN for their LLC in New Mexico. They can apply even if they don’t possess an SSN or ITIN, usually by fax or mail.
Are there any New Mexico-specific rules or regulations concerning EINs?
While the EIN application process is governed at the federal level by the IRS, you should be aware of New Mexico-specific business obligations or requirements once you have your EIN.