How To Get EIN For Illinois LLC

If you are having an LLC in Illinois and want to hire employees or perform any financial task then it is necessary for your LLC to register for an EIN. The employer identification number is one of the most important numbers that you must have. If you won’t have this number, then you are not able to hire any employees for your LLC or cannot perform any financial activity in the Illinois LLC. You will get the Illinois EIN from the internal revenue service. Through this number, IRS can identify your LLC as legitimate and track your tax paying. To learn more about EIN and to know the steps to consider for registering for EIN you have to read further.

How To Get Illinois EIN

As you learned above that Illinois EIN is the most important thing for an LLC or any business if they are paying tax or hiring employees. So, as soon as you complete filing for articles of organization and your LLC has been created successfully then you have to register with IRS for getting EIN. If you have EIN then it will facilitate payment of Illinois income, sales, and use taxes, as well as the amounts withheld from employee wages for your company. To get the EIN you can either file online on the official portal or through the mail. You have to follow the following steps in order to get the EIN online.

Step 1: The first thing for the process is to visit the official website of the Internal revenue service and then there you have to select the structure of the business for which you need the Illinois EIN employer identification number.

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Step 2: Now, you have to mention the number of members that you are having in Illinois LLC on the next page. Proceed further by clicking on next.

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Step 3: Here at this stage you will get a new page in which you have to provide a reason that why are you requesting an Illinois EIN.

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Step 4: On this step, you will be directed to a page where you are required to provide the details regarding the “responsible party” You also have to provide their first name, last name, individual Taxpayer Identification Number / Social Security Number.

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Step 5: In the next step, you should provide information related to the Business. Information such as the legal name of the business, Country where LLC is located, address trade Name/Doing Business As (DBA), State/Territory where LLC is located, and the Start Date.

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Step 6: Now, on the next page you will see some of the questions related to the tax purpose which you have the answer to. Proceed further by clicking next.

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Step 7: Here, you have to provide the purpose of the business. (You can select it from the options given as shown in the figure).

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Step 8: At last provide the information whether you will like to receive the information through mail or through the online system. Here this is the last step and it is recommended to get the details online.

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Why EIN Is Important For an LLC

As we have mentioned above that Illinois EIN is one of the most important numbers for your LLC. You should file it/register it as soon as your LLC is created successfully. It will help you in many ways and also help the IRS to track your LLC as a tax-paying LLC and a legitimate. Here are some of the reasons where you will require to have an EIN.

  • If you want to open a business bank account then they will ask for the Employer Identification Number.
  • The registered agent might need the EIN to manage all the state and federal taxes.
  • If you want to increase the workforce and hire new employees, then you will need the EIN.

Here are some of the points that will help you to understand whether the structure you choose for your business requires an employer identification number or not.

  • Does the business have a sole proprietorship with employees?
  • Does the business have a single-member LLC with employees?
  • Do the business is a multi-member LLC?
  • Do the business is Partnership, non-profit, or a corporation?

Sole Proprietorship

If you have a sole proprietorship business and not using any employee in your firm then you are not required to file for an EIN. If you are paying any kind of pension plan tax and have employees in your firm that it is necessary to have an Illinois EIN employer identification number. It is highly recommended to have an employer identification number for opening a bank account in the name of the business.

Single or Multi Member LLC

In a single-member LLC if the owner is working alone without having any employees in the firm and is not paying any pension plan tax then there is no need to register for an employer identification number after creating your LLC. If the owner needs an employee in the firm or paying any tax then it is necessary for him to have an Illinois EIN.

As it is a multi-member LLC  or partnership LLC you are required to have an employer identification number for your firm. It is necessary to get EIN as your LLC must file for partnership return and provide k-1s to the members of the LLC. It is necessary as IRS can track you as a tax-paying firm.

Corporation

There are 2 types of corporations that you can open. 1) S-corporation 2) C-corporation. Both these structures will require an employer identification number for tax reporting purposes. It is required to have EIN if you want to hire employees and reporting any tax. As your business is viewed as a separate entity and thus you will require to have an Illinois EIN.

Note: If you are forming a non-profit organization then also you have to register for an Illinois EIN for the purpose of reporting the tax.