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 Pennsylvania?
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:
Your local government may also require tax registrations.
How much do I have to pay to obtain an EIN for my Pennsylvania LLC?
When applying directly with the IRS, there is no fee to get an EIN. It’s a free service provided by the federal government.
How long does it typically take to receive an EIN in Pennsylvania?
If applying online, you usually receive your EIN immediately upon completion of the application. For faxed applications, it generally takes about four business days. Mailed applications might require 4-5 weeks for processing.
Can I use my personal Social Security Number (SSN) in lieu of an EIN for my Pennsylvania LLC?
While sole proprietors might be able to use their SSN for certain business functions, it’s recommended for LLCs to obtain a separate EIN for business-specific tasks, security reasons, and liability protection.
Once obtained, is there a need to renew my EIN in Pennsylvania periodically?
No, EINs do not expire. Once your Pennsylvania LLC has been assigned an EIN, it remains valid for the life of the company unless there are significant changes in business structure.
Can non-U.S. citizens obtain an EIN for an LLC in Pennsylvania?
Yes, foreign nationals can secure an EIN for their Pennsylvania LLC. If they don’t have an SSN or ITIN, they can still apply, usually by fax or mail.
Are there any Pennsylvania-specific guidelines or requirements related to EINs?
While the EIN application process is standardized at the federal level, once you have your EIN, you should stay informed about any Pennsylvania-specific business regulations or requirements that might apply to your LLC.