How EIN number is used to form an LLC?
When every year a few thousand income tax officers and people has to cross check, examine and rectify defaulters from the whole country in a short period of time, things can get very messy and tricky at the same time. Tracing whether every single individual has paid the right amount of tax or not is a very tedious and difficult operation that government officials have to carry out which is why for the sake of simplification governments have made entities that can be examined with the help of a single Tax id number.
This whole process of filing taxes is not only tricky and difficult for the officials but also for the individuals who has to pay tax. Websites can very much simply the process of obtaining this Tax id number by allowing individuals to apply for ein online right through their website. Although this unique 9 digit number that all entities have obtained from the IRS have the same format, yet they may be known by different names by different people. Tax ID Number (TIN), Employer Identification Number (TIN), Federal Employer Identification Number (FEIN) are just a few names by which this 12-3456789 formatted number is known as.
Similar to the way an individual is identified with the help of a social security number, in exactly the same manner business entities, trusts or estates are identified with the help of this Tax id numberor EIN. One needs to apply for and obtain an EIN if one is going to start a new business or one has hired or is going to hire new employees, including servants, cooks etc. Bank accounts in the name of LLCs also require the submission of the EIN number. Not only LLC but if one has to create a trust, pension plan or even non-profit organisations then also one needs to get the Employer Identification Number. If one changes the entity of his business from sole proprietorships to LLCs, then also they have to apply for Tax id number.
To represent the person who has died in his business, one needs to still obtain this Employer Identification Number. One can easily apply and obtain Tax ID Number or EIN by going to one page form and filling out all the information on the page. After submitting a one-time fee to the website for making this whole process much easier and saving one a ton of time, one will receive the EIN number message after one hour processing time.
Obtaining an EIN number is the first step of the answer of the question:How to start an llc. One can just simply go on the website page and from the list of all the giving government legal entities click on Limited Liability Company. After clicking on this button a big form with lot of personal questions will be displayed. After one submits the forms with all the accurate information about themselves and the members of their soon to be formed LLC, it just takes couple of hours to get the EIN number and get started with one’s business but it takes 10 to 15 working business days before their EIN number show on the income tax return payment websites.