How to obtain EIN (or TAX ID NUMBER)
After forming an LLC in Delaware and authorizing the Certificate of Formation, the first thing to do is to obtain a federal tax ID number, which is abbreviated as EIN (Employer Identification Number). This number is obtained via Internal Revenue Services (IRS).
In order to apply to obtain this number, you need to fill out Form SS-4 and submit it to the IRS. When obtaining this number, you will be asked certain questions to fill out the Form SS-4. These questions are explained below:
Name of the LLC: The full name that was submitted to the Delaware Division of Corporations, as added LLC to the end
To whom the notifications will be sent: IRS must know to whom the official documents (notifications) will be sent when needed. This person can live anywhere in the world. Generally, these people are one of the owners, members or manager of the companies or the company lawyer.
Address of the LLC: The address that all documents tax related and notifications will be sent. This address can be in a state other the US.
State of doing business: The principal state of doing business can be anywhere in the world or in the US.
Information of the responsible member: As explained before, the responsible person of an LLC (owner or the member) can live anywhere in the world; therefore, this person may not have a social security number. In this case, it is not compulsory to provide a SSN. However, the person responsible has a SSN, it have to be submitted.
Taxation of the LLC: This step is very important since any misleading or false information may cause serious tax related legal problems. If an LLC has more than one member, it is categorized as a partnership when being taxed. If the company has a single member, then it is taxation status will be defined as a sole proprietorship. When the taxation is being handled, both types of companies will fill out the same from; however, the actual taxation will be different in amount.
Starting date of the business: Here you are required to state the date of starting business for the incorporated or acquired company.
Last month of account: Unless stated different by your accountant, in order to make things easier, state the last month of accounting of your company as December.
Projected number of employees: This part of the form can always be restated; since the conditions and the projections for the future of the business can change in time. What is important here is to choose the write selection among the choices in the form. In the form, there are 12 different LLC types according to their employee number. If you could not find a choice that fits your business, you can mark “other”.
Executive summary: In order to inform IRS as much as possible about your business for a smooth process, give any valuable information you have about your business. First of all, you need to choose the right category for your business; then, you need to provide a detailed explanation for your business planning in the US. If you mark “other” in this section, you are naturally required to give more details regarding your business.
For any question regarding your business, taxation and any other processes related to those, please do not hesitate to contact us for professional help.