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 Wisconsin?
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.
Are there any costs associated with obtaining an EIN for my Wisconsin LLC?
No, there are no fees when obtaining an EIN from the IRS. It is provided as a free service.
How long is the waiting period to get my EIN in Wisconsin?
For those who apply online, the EIN is often provided immediately after completing the application. Fax applications may take up to four business days, while mail applications could span 4-5 weeks.
Is it possible to use my personal Social Security Number (SSN) instead of an EIN for my Wisconsin LLC?
Although some sole proprietors might utilize their SSN for business transactions, it is recommended that LLCs have a separate EIN for privacy reasons and specific business needs.
Do I need to renew my EIN in Wisconsin at regular intervals?
No, once your business has been assigned an EIN, it remains valid indefinitely. Significant changes in your business structure or ownership might require a new EIN, though.
Can international residents obtain an EIN for their Wisconsin LLC?
Yes, individuals residing outside the U.S. can secure an EIN for their LLC in Wisconsin. If they don’t have an SSN or ITIN, the application may need to be done via fax or mail.
Are there specific EIN application requirements exclusive to Wisconsin?
The process of obtaining an EIN is consistent across states since it’s a federal procedure. However, once you get your EIN, it’s vital to be aware of and comply with any state-level requirements in Wisconsin.