When forming your Florida LLC or corporation, you may be required to apply for an EIN, which is an abbreviation of Employer Identification Number. Your company’s EIN is a unique nine-digit number assigned by the IRS. It is required even if there is only one member.
It is also referred to as a Federal Tax Identification Number. Most all businesses that operate in the US are required to have one for identification and tax filing purposes. Failing to have one voids many of your LLC's benefits.
Does My Business Need an EIN?
In Florida, if you have a corporation or an LLC with two or more members, you must apply for an EIN. Similarly, if your business has any number of employees you must obtain an EIN. The tax classification of your business can also signal whether or not you need one. For example, if you have a partnership, LLC, or corporation that is taxed as a partnership or corporation, then an EIN is necessary.
Generally, the only businesses that don’t require an EIN are single member LLCs and sole-proprietorships. In these cases, the individual’s social security number is used instead. If the IRS does not require an EIN for your business, there are still reasons you may apply for one anyways.
For example, your business may need an EIN to open a bank account, obtain a credit card, meet certain license or permit requirements, or issue 1099 forms to your independent contractors. Additionally, business owners that don’t feel comfortable filing documents with their personal social security number may opt instead to apply for an EIN.
How Do I Apply for an EIN?
You can enlist the service of an attorney for this process or complete it on your own online. The process does not take long to complete and is free of charge. Be mindful that the EIN form must be completed at one time, as you cannot return to it once you’ve closed it. Also, the form will close on its own if you have been inactive for 15 minutes. Follow these steps to apply for your EIN online:
- Visit the Employer Identification Number section on the IRS website.
- Review any recommendations that the IRS lists before filling out the form.
- Choose the “Apply Online Now” option.
- You will receive a notification about needing to complete the form in a single visit.
- Next, define your business structure. Pick the best choice from the options.
- If you are certain, confirm your choice and continue.
- Detail the number of employees your company has and the state its located.
- Again, confirm and continue.
- Explain the reason you are applying for the EIN. Pick the best choice from the options.
- Pick the party responsible for your business. Pick either a business that already exists and has a valid EIN, or an individual. The individual’s name and social security number must be provided. This information is kept private by the IRS.
- List your business’ legal name and trade name, state, and county in which it is located.
- Pick the category that describes your business: finance, real estate, etc.
- State how you wish to receive your EIN confirmation letter, either online or by mail.
- Confirm your information and the process is complete.
The sooner you apply and receive an EIN for your business, the easier it will be to complete other formation steps and begin business operations. For example, you will need to apply for your EIN before you open a bank account or hire employees. If you require assistance in obtaining your company’s EIN, let us know. We can assist in your LLC formation, as well as serve as your registered agent, and provide many other benefits.