The Internal Revenue Service offers a number of ways for small businesses to obtain an Employer Identification Number (EIN). This article explains how to apply for one online, what it costs, and where to find out about tax filing deadlines.
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Benefits of having an EIN for your Wyoming LLC
Having an Employer Identification Number (EIN) gives you access to many benefits including the ability to open a business bank account, file tax returns, and even receive better customer service.
An EIN is required for most businesses operating in the United States. If you are thinking about starting a business, here are some reasons why you should consider getting one now.
#1 – Opening Business Bank Accounts
One of the biggest challenges small business owners face is opening a business bank account. Banks require certain documents to confirm your identity and verify that you are legally allowed to run a business. Without an EIN, you won’t be able to provide those documents.
#2 – Tax Returns
If you don’t have an EIN, filing your state income tax return could become very complicated. You’ll have to prove that you’re a legal entity, identify yourself as the owner, pay your federal and state tax liability and submit proof of payment.
#3 – Better Customer Service
Await approval of your Wyoming LLC.
Your Wyoming LLC must meet certain requirements in order to be accepted into the state. If it fails to do so, it won’t be able to open a bank account or receive money transfers. Here are some things you need to know about filing a Wyoming LLC.
1. What does my Wyoming LLC need to look like?
The Wyoming Secretary of State requires that every Wyoming LLC have a valid Employer Identification Number (EIN). This number identifies the owner of the LLC. In addition, the LLC needs to provide the following documents:
• A copy of the Articles of Organization;
• A copy of each member’s signature card;
• Proof of residency;
• Proof of identification;
Applying for an EIN for your LLC is free ($0)
Go to www.irs.gov/businesses/small/article/0,,id96576,00.html to find out how to apply for an Employer Identification Number (EIN).
The IRS offers a free application process for obtaining an EIN. To complete the application, you must provide basic information such as name, address, Social Security number, employer identification number, and contact information. After completing the application, you will receive a confirmation email stating whether your application was accepted or rejected. If your application was approved, you will receive another email indicating the date your EIN will be effective.
If you do not want to use the IRS’ online system, you can mail your completed application to the following address:
U.S. Internal Revenue Service
Employment Standards Administration
Attn.: Employment Tax Operations
Post Office Box 979
You lack an ITIN or SSN.
Here are some options
Foreigners don’t need an SSA number or ITIN to form a corporation. They just need a valid passport and proof of address. If you’re a citizen of one of those countries, here are some options for obtaining an Employer Identification Number (EIN).
You can obtain an EIN without Social Security numbers (SSNs), Individual Taxpayer Identification Numbers (ITINS) or even a tax return. All you need is a valid passport and proof that you live somewhere else.
Mail/Fax Form SS4
The IRS allows companies to apply for an employer identification number (EIN) online. This is done via the Electronic Federal Tax Payment System (EFTPS). To do this, you must use Form SS4, Application for Employer Identification Number.
Ein Phone Application
The IRS announced it will stop accepting applications for Employer Identification Numbers (EINs) by telephone. This change comes after the agency received feedback from taxpayers about the inconvenience of having to call into the IRS to obtain an EIN. In addition, the IRS says it wants to make sure that tax filers are able to access the information needed to file taxes quickly and easily.
Nonprofits still can get an EID number through the phone system. Foreign businesses must use the web application to request an EIN.
EIN Responsible Party
The Internal Revenue Service requires that every entity file Form SS-4, Application To Register Electronic Filing Identification Number, and pay $25 per form. This allows the IRS to track entities electronically. If you fail to do so, the agency may close down your business.
When registering your company name, you are required to choose one person as the Responsible Party. You cannot use a corporation, partnership, limited liability company or trust. The Responsible Person must live within the United States. He or she will be responsible for filing all federal income tax returns and paying any applicable taxes due.
If your Wyoming LLC has multiple members:
Multi-member companies are becoming increasingly popular among small businesses. They offer several advantages over single-member entities such as limited liability protection, increased flexibility, and lower costs. However, multi-member companies come with some additional requirements. In particular, one member must be designated as being responsible for paying taxes and filing returns. This responsibility is shared equally by all members.
The IRS requires that each member of the LLC agrees to be personally liable for any federal income tax liabilities incurred during the taxable year. If a member does not sign the agreement, he or she cannot claim the tax benefits of owning an LLC.
Frequently Asked Questions
How to Cancel an EIN?
If you want to change your EIN number, it’s easy. All you have to do is send a written request to the Internal Revenue Service (IRS). There are no fees associated with canceling your EIN number. You simply need to make sure you’ve got the correct information ready. Here’s what you’ll need to know about changing your EIN number:
1. Submit Form W-9 to Your Bank
2. Mail a Cancellation Letter to the IRS
3. Get a New EIN Number
4. Update Your Business Name
5. Register Your New EIN Number With the Secretary of State
6. File Your Annual Report
7. Pay Taxes
8. Apply for a Social Security Card
What is the difference between a Federal Tax Number, EIN, and FEIN?
The IRS requires you to obtain a federal tax number, called an Employer Identification Number or EIN. This type of number is used to identify businesses and individuals for filing taxes, paying fees and registering with the government. A Social Security Number (SSN) is required for employment purposes. An individual must apply for both an SSN and an EIN. You cannot use one without the other.
An employer identification number, or EIN, is similar to a social security number. However, it is a unique identifier assigned to each taxpayer. Unlike an SSN, it is not linked to personal information such as name and address. Both numbers are needed to file taxes.
A federal tax form, known as Form W-9, is used to request an EIN. Once received, an EIN replaces an SSN on certain documents filed with the Internal Revenue Service (IRS).
In addition, a federal tax form, known formally as Form 1099-EIN, is used to report payments to taxpayers. If a payment is less than $10,000, the recipient does not need to complete this form. Instead, the payee completes Form W-2G and sends it along with Form 1096-EZ, which reports payments greater than $10,000.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.