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 West 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:
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 West Virginia
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 West Virginia Taxes
You also may need to register for business taxes in West Virginia.
All businesses in West Virginia must obtain a business registration certificate from the Department of Revenue’s Tax Division. You can apply on the WV One Stop Business Portal.
The certificate will allow you to withhold state income and unemployment taxes if you have employees. It will also register you for sales tax if applicable to your business.
Your local government may also require tax registrations.
How much does it cost to apply for an EIN for my LLC in West Virginia?
Obtaining an EIN from the IRS is a free service. There is no fee to apply for an EIN for your LLC.
How long does the EIN application process in West Virginia take?
If you apply online, the EIN is typically provided instantly upon successful completion. Fax submissions may take about four business days. If you apply by mail, expect it to take 4-5 weeks.
Is it possible to use my SSN instead of an EIN for my West Virginia LLC?
While sole proprietors might often use their SSN for business operations, it’s generally recommended for LLCs to acquire an EIN to safeguard personal information and fulfill certain business requirements.
After receiving my EIN in West Virginia, do I need to renew it periodically?
No, once issued, the EIN for your LLC is permanent. However, if there are significant changes in the structure or ownership of the LLC, you might need a new EIN.
Can non-U.S. residents obtain an EIN for an LLC based in West Virginia?
Yes, international residents can secure an EIN for their West Virginia LLC. If they lack an SSN or ITIN, they might have to apply via fax or mail.
Are there any EIN-related guidelines specific to West Virginia?
The EIN application procedure is federally regulated and consistent across all states. However, after obtaining your EIN, it’s essential to be aware of any West Virginia-specific business regulations or requirements.