You must request a tax identification number from the IRS in order to launch a business in the US. This number, also known as an Employer Identification Number (EIN), is used to identify your company for tax purposes. A common question is whether obtaining an EIN requires providing a social security number (SSN). No, an SSN is not required to obtain an EIN, to answer your question.
An EIN is a special nine-digit number that the IRS issues to businesses. On tax returns, bank statements, and other legal papers, it is used to specify your company. An SSN is a personal identifying number given to an individual, whereas an EIN is given to a business. As a result, you can apply for an EIN without providing your SSN.
In this regard, an EIN is equivalent to a tax ID. The same number that is used to identify firms for tax purposes is referred to by both of these designations. The sole distinction is that an EIN expressly refers to a number given to firms by the IRS, but the term “tax ID” is more broad and can refer to various sorts of tax identification numbers.
Limited liability companies, or LLCs, are regarded as distinct legal entities from their owners. Therefore, obtaining an EIN is necessary. An EIN is still required to identify your business for tax purposes, even if your LLC only has one member. To withhold and pay employment taxes, you will also need an EIN if you have employees.
An EIN number is perpetual. Even if your company name or location changes after you’ve been given an EIN, it will stay the same for the duration of your operation. However, you might need to file for a new EIN if your company structure changes. For instance, you will need to file for a new EIN if your business changes from a sole proprietorship to an LLC.
You can obtain an EIN for free on the IRS website if you’re beginning a business in Alabama. The “Apply for an EIN Online” option is available on the IRS website. To finish the application, adhere to the instructions. You will receive an EIN as soon as your application is finished.
In conclusion, getting an EIN is possible without having an SSN. All businesses, including LLCs, are required to have an EIN, often known as a tax ID. An EIN number never expires, but if your company structure changes, you might need to file for a new one. On the IRS website, you can apply for a free EIN number if you live in Alabama.