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.
It’s often required to open a business bank account. However, it creates separation between your business and personal finances because bankers, creditors, and the IRS will identify your business by its EIN rather than your personal Social Security number.
Also, it helps establish business credit, which will boost your access to financing. 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 Oregon?
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:
Oregon has no state sales tax, so registration is unnecessary.
Your local government may also require tax registrations.
What's the cost of obtaining an EIN for my Oregon LLC?
Applying directly with the IRS for an EIN is free. There are no associated charges for the application.
After completing the application, how long will it take to receive my EIN in Oregon?
Online applications often provide an immediate EIN upon successful completion. Fax applications might take up to four business days, while mailed applications can require 4-5 weeks for processing.
Is it possible to utilize my personal Social Security Number (SSN) instead of an EIN for my Oregon LLC?
While sole proprietors sometimes use their SSN for business activities, it’s generally advisable for LLCs to have a distinct EIN. This provides added security and facilitates certain business operations.
Will I need to renew my EIN in Oregon periodically?
No, once an EIN is assigned to your Oregon LLC, it remains with the business indefinitely, unless significant structural changes occur.
Can foreign nationals secure an EIN for an Oregon-based LLC?
Yes, non-U.S. citizens can obtain an EIN for their LLC in Oregon. Even without an SSN or ITIN, they can apply, usually via fax or mail.
Are there Oregon-specific guidelines or nuances related to EINs that I should be aware of?
While the EIN application process is a federal procedure, once you have your EIN, you should stay updated on any Oregon-specific business regulations or obligations relevant to your LLC.