What is an EIN Number ?
This lesson is about getting a Federal Tax ID Number ( aka EIN ) from the IRS. Please wear ’ t confuse this with your Texas LLC ’ s “ Taxpayer Number ”. I know the names are closely identical, but your LLC ’ sulfur EIN is a 9-digit count that comes from the IRS. Your Taxpayer Number is an 11-digit total that comes from the Texas Comptroller. You ’ ll receive your Taxpayer Number on the welcome letter from the Comptroller. An EIN Number stands for Employer Identification Number and it will be issued by the IRS to your Texas LLC. An EIN is to your Texas LLC what a social Security Number is to a person. It helps the IRS identify your commercial enterprise for tax and filing purposes.
Having an EIN for your Texas LLC allows you to open a break bank explanation under the LLC ’ second name, apply for certain licenses and permits, and handle employee payroll ( if applicable ). even though it ’ sulfur called an Employer Identification Number, it doesn ’ deoxythymidine monophosphate entail that you have to have employees. The EIN is just a type of Taxpayer Identification Number ( TIN ) that identifies your Texas LLC with the IRS. Special offer: If you hire Northwest to form your LLC ( $ 39 + state tip ), they ‘ll get your EIN Number for $ 50 .
Your Texas LLC ’ s EIN may be called different names. They all mean the same thing though. similar terms for an EIN include :
- EIN Number
- Employer ID Number
- Employer Identification Number
- Federal Employer ID Number
- Federal Employer Identification Number
- Federal Tax Number
- Federal Tax ID Number
- Federal Tax Identification Number
Benefits of having an EIN for your Texas LLC
Having an EIN for your Texas LLC enables you to do the follow :
- Open an LLC business bank account
- File taxes at the federal, state, and local level
- Handle employee payroll (if applicable)
- Obtain business lines of credit or business loans
- Get a business credit card for your LLC
- Apply for business licenses
Wait for your Texas LLC to be approved
Wait for your Texas LLC to be approved by the Secretary of State before applying for your EIN. otherwise, if your LLC filing is rejected, you ’ ll have an EIN attached to a non-existent LLC. however, if this does happen, you can constantly cancel your EIN and then apply for a new one. And you don ’ t have to wait for your cancellation to go through earlier applying for a new EIN .
Applying for an EIN for your LLC is free ( $ 0 )
Applying for an EIN for your Texas LLC is completely release. The IRS doesn ’ t charge anything for applying for an EIN .
Don ’ thyroxine have an SSN or ITIN ?
If you ’ re a foreigner who formed a Texas LLC, you can placid get an EIN without having an SSN or ITIN. You barely can ’ triiodothyronine get your EIN on-line. alternatively, you need to mail or fax Form SS-4 to the IRS. We have instructions here : How to apply for EIN without an SSN or ITIN. ( related article : How to apply for an ITIN )
EIN Phone Application
You may have read that you can apply for an EIN by telephone. This is no longer the encase. The IRS has discontinued this service. The only businesses that can get an EIN by telephone are exempt Organizations ( like non-profits ) and Foreign Companies ( companies formed outside of the United States ). If you ’ re a foreigner and you formed an LLC in Texas, we have instructions below on how to apply for your EIN .
EIN for Husband and Wife LLC in Texas
Because Texas is a community property state, a 2-member LLC that is owned by a husband and wife can elect a special form of tax income called a “ Qualified Joint Venture LLC “. A Qualified Joint Venture with the IRS allows your husband and wife Texas LLC to file taxes as a Sole Proprietorship rather of a Partnership. This can save you time and money in account and tax costs. There may be extra benefits to obtaining Qualified Joint Venture condition with the IRS and this is a conversation you ’ ll want to have with an accountant. Please see our full article hera : Qualified Joint Venture ( Husband and Wife LLC )
EIN Responsible Party
The EIN Responsible Party is a person that goes on file with the IRS when you apply for an EIN for your Texas LLC. think of the Responsible Party as the LLC ’ s “ contact person ”. The IRS will send your LLC ’ randomness mail and parallelism to this person .
If you have a Single-Member Texas LLC
then you will be the EIN Responsible Party .
If you have a Multi-Member Texas LLC
One of the LLC Members will be the EIN Responsible Party. The IRS fair wants one person as the EIN Responsible Party. They don ’ triiodothyronine want all the Texas LLC Members ’ information. The IRS gets the early Members ’ information when you file your 1065 Partnership return and issue K-1s each class. Although any LLC Member can be listed, you should list the LLC Member that will take on the duty of making certain the LLC ’ south taxes are handled properly .
If your Texas LLC is owned by another company
The IRS made changes in 2018 that no longer allow an EIN Responsible Party to be a company. The EIN Responsible Party must be an individual person. So it ’ south best to list one of the individual owners of the rear company. note : If you have a Texas LLC that is owned by another company and you try to get an EIN on-line, you ’ ll equitable get an error message ( EIN reference number ) at the end of the application .
Learn more about EIN Responsible Party
To learn more about who can be the EIN Responsible Party for your Texas LLC, please see EIN Responsible Party for LLC .
How is a Texas LLC taxed?
By default, a Texas LLC is taxed based on the issue of Members ( owners ). Meaning, an LLC is taxed in the default condition set by the IRS and the LLC doesn ’ deoxythymidine monophosphate chosen to be taxed as a Corporation ( either a C-Corporation or an S-Corporation ).
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( relate article : how are LLCs tax ) The nonpayment tax condition for a Texas Single-Member LLC is a Disregarded Entity, meaning if the LLC is owned by an person, the LLC is taxed like a Sole Proprietorship. If the LLC is owned by a party, it is taxed as a branch/division of the parent party. The nonpayment tax status for a Texas Multi-Member LLC is Partnership, meaning the IRS taxes the LLC like a Partnership. If alternatively, you want your Texas LLC taxed as a C-Corp, you ’ ll first apply for an EIN and then late file shape 8832. If you want your LLC taxed as an S-Corp, you ’ ll foremost apply for an EIN and then subsequently file form 2553. If you choose to have your Texas LLC taxed as a corporation, make sure you speak with an accountant as there are a lot of details you need to consider. Having an LLC taxed as an S-Corporation is a much more popular choice than having an LLC taxed as a C-Corporation. S-Corporation tax normally makes smell once an LLC generates about $ 70,000 in net income per class .
How to apply for an EIN for your Texas LLC
Below you will find 3 different sets of instructions :
1. If you have an SSN or ITIN, use the EIN online application
We recommend applying for an EIN on-line for your Texas LLC if you have an SSN or ITIN. This is the easiest filing method acting and it has the fastest approval time. We have instructions here:
How to apply for an EIN on-line
2. If you apply online, but you get an error message
If you have an SSN or ITIN, give for an EIN on-line, but you get an error message ( called an EIN reference number ) at the end, you will need to mail or fax Form SS-4 to the IRS rather. We have instructions here:
Apply for EIN for LLC with Form SS-4
3. If you don’t have an SSN or ITIN
If you don ’ thyroxine have an SSN or ITIN, you can silent get an EIN for your Texas LLC. You barely can ’ deoxythymidine monophosphate apply for an EIN on-line. You will need to mail or fax Form SS-4 to the IRS rather and you must fill the shape out in a certain means. We have instructions here:
How to get an EIN without an SSN or ITIN
EIN Confirmation Letter (EIN Approval)
once the IRS issues an EIN for your Texas LLC you will receive your official approval, known as an EIN Confirmation Letter (CP 575). The method acting you used to apply for an EIN will determine how you receive your EIN Confirmation Letter. If you applied for an EIN online:
You ’ ll be able to download a PDF imitate of your EIN Confirmation Letter at the end of the on-line application. There is no waiting time. The IRS will besides send you a double transcript in the mail in about 4 to 5 weeks. If you sent Form SS-4 by fax:
The IRS will fax you back your EIN Confirmation Letter within 4 to 7 business days. If you sent Form SS-4 by mail:
The IRS will mail your EIN Confirmation Letter within 4 to 8 weeks. Here is what the EIN Confirmation Letter for an LLC looks like:
How to Cancel an EIN?
If there was a mistake with your first EIN application or you need to cancel your EIN Number for any reason, you just need to mail a cancellation letter to the IRS. We have instructions here : how to cancel an EIN. You don ’ t have to wait for your EIN cancellation to be finalized before getting a new EIN for your Texas LLC .
LLC Business Bank Account
After getting your EIN, you can then open a separate commercial enterprise bank account for your Texas LLC. Banks normally ask for the stick to documents to open a Texas LLC business bank account :
- EIN Confirmation Letter
- LLC Approval (stamped and approved Certificate of Formation)
- LLC Operating Agreement
- Driver’s License and/or Passport
aside from the above, banks may besides require other paperwork ( like proof of address ), so we recommend calling a few banks in Texas ahead of time before visiting them in person. It ’ second besides a good idea to ask if they have monthly fees on their “ basic ” clientele checking accounts since there are a phone number of banks that don ’ t have any monthly fees. If you ’ re a non-US house physician ( foreigner ), you will need to show 2 forms of identification, such as your extraneous pass and your foreign driver ’ sulfur license. There are extra things to keep in judgment when opening a U.S. bank account for your Texas LLC that we have listed here : Non-US house physician opening U.S. bank account for an LLC note : You will need to open a bank report in Texas since that is where you formed your LLC .
Next Step: Texas Franchise Tax
once the IRS has issued an EIN for your Texas LLC, you can then proceed to the adjacent moral : Texas LLC Franchise Tax .
IRS Contact Information
If you have any questions, you can call the IRS at 1-800-829-4933. Their office hours are 7am – 7pm, Monday through Friday. We recommend that you call the IRS early to avoid farseeing holding times.
Matt holds a Bachelor’s Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC – all for free! Read more about Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed bare and actionable instructions to start an LLC that other companies were n’t offering. He ‘s cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.Matt holds a Bachelor ‘s Degree in business from Drexel University with a concentration in business law. He performs across-the-board research and analysis to convert state laws into simple instructions anyone can follow to form their LLC – all for free ! Read more about Matt Horwitz and LLC University