Get an Employer Identification Number For LLC in Pennsylvania

What is the Employer Identification Number (EIN)?

Let’s start with a visual. As a person, the authorities have a way to identify you which they do with your driver’s license or any other ID you have. It’s what you use anytime you want to access state and federal services. So, how can the government recognize your business? Most people think that once they have done their registration, that’s all they need to start their business. And in some cases, it’s enough. However, there are circumstances that require you to get a tax ID number which is similar to a social security number for an individual and can help your organization to access more services. That’s what we will cover in this article, enabling you to know why, when and how this number serves your organization.

But first, let’s cover some of the most common names you will come across, all of which refer to the same thing. These are:

  • EIN Number;
  • Employer ID Number;
  • Employer Identification Number;
  • Federal Employer ID Number;
  • Federal Employer Identification Number;
  • FEIN;
  • Federal Tax Number;
  • Federal Tax ID Number;
  • Federal Tax Identification Number.

Why does an LLC need an EIN in Pennsylvania?

Not every organization will need to apply for an EIN. If you look at the rules, you will realize that you might not even need one, depending on how you have structured your operations when starting a business in Pennsylvania. Let’s look at the two circumstances where the authorities will require you to get an EIN for free from the IRS.

  1. You have several members in the organization. Look at it this way. If you are more than one person entitled to the profits made in the company, it means that the money is going out to several people, thereby creating the effect of salaries and whatnot. The rights of these people have to be catered to and you must also ensure that you are reporting their taxes correctly. As such, you need to get this Pennsylvania state tax ID number which will help you have an easier time with your accounting and also keep the authorities off your case.
  2. You have hired people or you plan to do so once you start your operations. It’s best to make an application even before you have hired your first employee. It makes it easier to create a payroll and ensure that money goes out to the authorities regarding the taxes. Without this measure in place, you can find yourself in a lot of trouble when the Pennsylvania Department of State reps come knocking on your door, demanding the paperwork for your tax filings for anyone working under you.

Does your organization meet any of these requirements? Most people find themselves needing to get an ID. However, you might be one of the organizations that can lawfully operate even without one. Even so, it’s always better to have one nearby because it helps you have an easier time when:

  • Opening an account: when you walk into a bank and state you want to open a business account, most representatives will request that you show them your business tax ID number. And no, this will not be your driver’s license or any other personal ID, but rather, one issued for your organization. Please note that having a bank account will make it easier for you to keep your personal funds safe by separating them from what you get in the business. It will be much harder for you to lose all you’ve made if someone sues you and is successful.
  • Filing returns: you probably already know that you will need to either pay some money or report what you have made each year to the government at different levels using a business tax account. To do this, you will need to have a specific number issued to identify your business, which will be your ID in this case. Not only tracking the payments will be easy, but also the authorities will hardly ever show up, questioning why you have not complied with the rules. Of course, to enjoy this perk, you have to be loyal with your payments and watch the deadlines.
  • Applying for licenses: in some industries, you will need to get a special permit to start your operations. For example, if you are doing some catering work or you’re dealing with health work, you will need to get some paperwork done to show that you have complied with the regulations. In this case, most authorities will want to deal with your official IRS EIN number and will not be open to using your personal records.
  • Getting a merchant account: most businesses are now focusing on their online clients and to get the most out of this, you require an account that can handle cards. For most institutions, you will need proof that you are running a business for them to issue you with such an account. Think of how much you can grow your business this way!

Finally, you will also have more opportunities to access credit, will appear more professional to your investors and you’ll also have an easier time renumerating your employees.

How to Get a Tax ID in Pennsylvania?

So, how can you get in on this opportunity right now? The first thing you need to have is an existing business which has gone through the registration stages. Without this, you can still get an ID but it would not be tied to any organization and would thus not serve any purpose. You would have to register your company entity and start the process all over again and cancel the number that you first applied for.

What Information Do I Need to Get an Employer Identification Number?

Generally, you must provide pretty much the same details you would when registering the business. Ensure you have your:

  • Business name and address;
  • The name and address of your point of contact;
  • What kind of activities you will pursue;
  • When the business started and when its fiscal year will end;
  • If you plan on hiring people and how many they will be.

How to apply for an EIN?

There are several ways to get your number issued, all of which take different periods to process. The earlier you get started, the easier it will be to get other processes moving. In all these cases, you will need to file your Form SS-4.

You can do it via:

Online

If you want things done fast, use the Internal Revenue Service (IRS) website, which is the easiest and fastest way.

By mail

Once your form is ready, send it to:

Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

FAX

You can as well send the form by fax to 855-641-6935

Over the phone

If you are not in the country, you can also call 267-941-1099 to finish the submission. It takes about an hour to get the process done and can be pretty costly if you do not use a web app to make the connection.