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.
Banks often require an EIN to open business accounts. In addition, bankers, creditors, and the IRS will identify your business by its EIN rather than by your personal Social Security number, adding a degree of separation between your business and personal finances.
Also, an EIN will boost access to financing by helping establish business credit. And, if you do 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 Ohio?
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 Ohio
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 Ohio Taxes
You also may need to register for business taxes in Ohio.
If you have employees, you’ll need to register to withhold state income taxes on the Ohio Business Gateway. 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 tax registrations.
Are there any fees involved in getting an EIN for my LLC in Ohio?
No, the IRS provides EINs free of charge when you apply directly with them.
What's the usual timeframe for receiving my EIN in Ohio after application?
For online applications, you’ll often get your EIN immediately upon submission. For faxed applications, it usually takes around four business days. If you apply via mail, it may take 4-5 weeks.
Is it acceptable to use my SSN for business activities instead of getting an EIN for my Ohio LLC?
While some sole proprietors might use their SSN, it’s advisable for LLCs to have a distinct EIN for business-related matters, including ensuring privacy and keeping personal and business affairs separate.
Do I have to renew my EIN in Ohio at regular intervals?
No, once issued, an EIN doesn’t expire and remains with your Ohio LLC indefinitely, unless there are substantial changes in the business structure.
Can individuals who aren't U.S. citizens apply for an EIN for their Ohio LLC?
Yes, foreign nationals can secure an EIN for their Ohio-based LLC. They can apply even without an SSN or ITIN, generally via fax or mail.
Is there any Ohio-specific information I need to be aware of regarding EINs?
While the EIN application is a federal process and is consistent across states, it’s important to stay informed about any state-specific regulations, tax requirements, or business obligations in Ohio once you have your EIN.