What is an EIN Number ?
An EIN Number stands for Employer Identification Number and it will be issued by the IRS to your Illinois LLC. An EIN is to your Illinois LLC what a social Security Number is to a person. It helps the IRS identify your business for tax and filing purposes. Having an EIN for your Illinois LLC allows you to open a separate bank account under the LLC ’ second list, apply for certain licenses and permits, and handle employee payroll ( if applicable ).
even though it ’ south called an Employer Identification Number, it doesn ’ thyroxine entail that you have to have employees. The EIN is just a type of Taxpayer Identification Number ( TIN ) that identifies your Illinois LLC with the IRS. Special offer: If you hire Northwest to form your LLC ( $ 39 + express fee ), they ‘ll get your EIN Number for $ 50 .
Your Illinois LLC ’ s EIN may be called different names. They all mean the like matter though. alike 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 Illinois LLC
Having an EIN for your Illinois LLC enables you to do the succeed :
- 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 Illinois LLC to be approved
Wait for your Illinois LLC to be approved by the Secretary of State before applying for your EIN. otherwise, if your LLC file is rejected, you ’ ll have an EIN attached to a non-existent LLC. however, if this does happen, you can always 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 modern EIN .
Applying for an EIN for your LLC is loose ( $ 0 )
Applying for an EIN for your Illinois LLC is wholly complimentary. The IRS doesn ’ metric ton charge anything for applying for an EIN .
Don ’ deoxythymidine monophosphate have an SSN or ITIN ?
If you ’ re a non-US nonmigratory who formed an Illinois LLC, you can however get an EIN without having an SSN or ITIN. You merely can ’ t 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 call. This is no retentive the case. The IRS has discontinued this avail. The merely businesses that can get an EIN by telephone are nontaxable Organizations ( like non-profits ) and Foreign Companies ( companies formed outside of the United States ). If you ’ re a non-US house physician and you formed an LLC in Illinois, we have instructions below on how to apply for your EIN .
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 Illinois LLC. intend of the Responsible Party as the LLC ’ s “ contact person ”. The IRS will send your LLC ’ mho chain mail and agreement to this person .
If you have a Single-Member Illinois LLC :
then you will be the EIN Responsible Party .
If you have a Multi-Member Illinois LLC :
One of the LLC Members will be the EIN Responsible Party. The IRS just wants one person as the EIN Responsible Party. They don ’ metric ton want all the Illinois LLC Members ’ information. The IRS gets the early Members ’ information when you file your 1065 Partnership return and issue K-1s each year. Although any LLC Member can be listed, you should list the LLC Member that will take on the province of making sure the LLC ’ second taxes are handled by rights .
If your Illinois LLC is owned by another company:
The IRS made changes in 2018 that no long allow an EIN Responsible Party to be a company. The EIN Responsible Party must be an individual person. So it ’ randomness best to list one of the individual owners of the rear company. Note: If you have an Illinois LLC that is owned by another company and you try to get an EIN on-line, you ’ ll good get an error message ( EIN reference number ) at the conclusion of the application .
To learn more about who can be the EIN Responsible Party for your Illinois LLC, please see EIN Responsible Party for LLC .
How is an Illinois LLC taxed?
By default, an Illinois LLC is taxed based on the number of Members ( owners ). Meaning, an LLC is barely taxed in the default status set by the IRS and the LLC doesn ’ thyroxine elect to be taxed as a Corporation ( either a C-Corporation or an S-Corporation ) .
- Related article: How are LLCs taxed
The nonpayment tax condition for an Illinois Single-Member LLC is a Disregarded Entity, meaning if the LLC is owned by an individual, the LLC is taxed like a Sole Proprietorship. If the LLC is owned by a company, it is taxed as a branch/division of the rear company. The default tax condition for an Illinois Multi-Member LLC is Partnership, meaning the IRS taxes the LLC like a Partnership. If rather, you want your Illinois LLC taxed as a C-Corp, you ’ ll first practice for an EIN and then by and by file human body 8832. If you want your LLC taxed as an S-Corp, you ’ ll foremost use for an EIN and then late file shape 2553.
If you choose to have your Illinois 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 democratic choice than having an LLC taxed as a C-Corporation. S-Corporation tax income normally makes sense once an LLC generates about $ 70,000 in net income per year .
How to apply for an EIN for your Illinois LLC
Below you will find 3 unlike 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 Illinois LLC if you have an SSN or ITIN. This is the easiest charge method acting and it has the fastest blessing prison term. 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, apply for an EIN on-line, but you get an error message ( called an EIN mention act ) at the end, you will need to mail or fax Form SS-4 to the IRS alternatively. 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 ’ t have an SSN or ITIN, you can even get an EIN for your Illinois LLC. You good can ’ triiodothyronine lend oneself for an EIN on-line. You will need to mail or fax Form SS-4 to the IRS alternatively and you must fill the shape out in a certain manner. 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 Illinois 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 copy 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 duplicate copy in the chain 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 inaugural EIN application or you need to cancel your EIN Number for any reason, you fair 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 raw EIN for your Illinois LLC .
LLC Business Bank Account
After getting your EIN, you can then open a branch business bank account for your Illinois LLC. Banks normally ask for the following documents to open an Illinois LLC business bank account :
- EIN Confirmation Letter
- LLC Approval (stamped and approved Articles of Organization)
- LLC Operating Agreement
- Driver’s License and/or Passport
aside from the above, banks may besides require other paperwork ( like validation of address ), so we recommend calling a few banks in Illinois ahead of time before visiting them in person. It ’ south besides a good theme to ask if they have monthly fees on their “ basic ” clientele checking accounts since there are a number of banks that don ’ t have any monthly fees. If you ’ re a non-US resident, you will need to show 2 forms of identification, such as your alien recommendation and your foreign driver ’ second license. There are extra things to keep in mind when opening a U.S. bank account for your Illinois LLC that we have listed hera : Non-US house physician opening U.S. bank account for an LLC Note: You will need to open a bank account in Illinois since that is where you formed your LLC .
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 on to avoid long holding times .
once the IRS has issued an EIN for your Illinois LLC, you can then proceed to the adjacent example : Illinois LLC Annual Report.
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 adept on LLC department of education for the past decade. He founded LLC University in 2010 after realizing people needed simpleton and actionable instructions to start an LLC that early 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 extensive research and psychoanalysis to convert state of matter laws into simple instructions anyone can follow to form their LLC – all for free ! Read more about Matt Horwitz and LLC University