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 a business bank account. It also separates your business and personal finances, as bankers, creditors, and the IRS will identify your business by its EIN rather than by your personal Social Security number.
An EIN helps establish business credit, boosting 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 Virginia?
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 will I be charged for obtaining an EIN for my Virginia LLC?
The IRS does not charge any fee for issuing an EIN. You can get your EIN for free when you apply directly with the IRS.
How long will it take to receive my EIN after application in Virginia?
If you apply online, you typically receive your EIN immediately upon successful submission. Applications sent through fax take about four business days, while mailed applications can take 4-5 weeks.
Can I use my personal SSN (Social Security Number) in place of an EIN for my Virginia LLC?
While it’s possible for sole proprietors to use their SSN in some cases, LLCs are typically advised to obtain an EIN to protect personal information and to meet certain business and banking requirements.
Does an EIN need to be renewed periodically for my LLC in Virginia?
No, once your LLC has been issued an EIN, it remains valid for the lifetime of the company, unless the business structure changes significantly.
Can non-U.S. citizens get an EIN for an LLC set up in Virginia?
Yes, foreign nationals can obtain an EIN for their LLC in Virginia. If they don’t possess an SSN or ITIN, they can apply using alternative methods like fax or mail.
Are there any Virginia-specific guidelines related to EINs that I should be aware of?
While the EIN application is standardized federally, once you have your EIN, it’s crucial to be aware of any Virginia-specific business regulations, obligations, or requirements.