Before you started your business, you probably never considered Employer Identification Numbers (EINs). The fantastic thing about this is that obtaining your EIN is a relatively hassle-free step in launching your own LLC. The Internal Revenue Service is responsible for issuing an EIN to your LLC. You can start the EIN online application on their website. The EIN identifies your company to the IRS like a Social Security Number does for individuals.
When your New Mexico LLC is approved, you need to get an EIN. Thankfully, applying for an EIN for your New Mexico LLC is entirely free.
You can use your EIN in New Mexico and other states to:
Create a business bank account for your LLC.
File local, state, and federal taxes.
Fill out the New Mexico income tax return.
Get an LLC business credit card.
Get business loans.
Handle payroll.
Now that you know the fundamentals of EINS, let's move on to our step-by-step instructions that will assist you in obtaining your own EIN!
Steps to follow to create EIN online
Begin your application by going to the IRS website.
At the center of the page, click the "Apply Online Now" button. After reading the important information, click "Begin Application".
Identify the type of legal entity applying for the EIN.
Choose "Limited Liability Company." Then, enter the total number of members in the LLC. After that, choose the state where your LLC was formed, such as New Mexico, and click "Continue." If you have a Single-Member LLC, it will be taxed like a Sole Proprietorship. The income from your LLC will pass through to your tax return, i.e., Form 1040.
The IRS taxes your Multi-Member LLC as if it were a partnership, and the income from your LLC passes through to your tax return on Form 1040. The question "Why is the LLC requesting an EIN?" appears next. Click "Continue" after selecting "Started a new business."
Authenticate (Provide details of EIN Responsible Party)
When applying for your LLC's EIN, you must name an EIN Responsible Party on your application. The Responsible Party must have an SSN or ITIN, and the IRS will contact them about your LLC's taxes. You will be the EIN Responsible Party if your LLC has only one member. Enter your full name and SSN/ITIN. Then click "Continue" to continue.
However, if you have a Multi-Member LLC, one of the LLC members will be the EIN Responsible Party. The IRS only requires one person to be designated as the EIN Responsible Party. When you file your 1065 Partnership return, the IRS receives the other members' information.
Provide your addresses
Enter your LLC's physical address. The IRS will send correspondence or mail to your LLC using this address. Remember that a P.O. Box address is not permitted, and a physical street address must be provided. If you formed an LLC in the United States but did not have a physical address in the United States, you can use your Registered Agent's address.
Provide more details of your LLC.
Enter your LLC's full name without commas and periods. The IRS prohibits most special characters in the name field. For instance, you must replace "." with "dot." Then, enter the county where your LLC is registered and where your Articles of Organization were filed. Enter the date your LLC was approved, as shown on the approved Articles of Organization for your LLC.
Choose your LLC's primary business purpose from the options provided on the following page. If no options are suitable, you can select "Other" and specify your LLC's purpose on the following page. Once finished, click Continue.
EIN Confirmation
How do you want your EIN Confirmation Letter delivered? Choose "Receive letter online" to receive your EIN Confirmation Letter faster. Assess the information you have provided in your application process and click "Submit" to complete your application.
Final Thoughts
Many business owners prefer LLC holding companies because they protect your assets, lower your tax liabilities, and offer you much-needed privacy. An EIN is an essential "detail" when forming your LLC holding company in states like New Mexico, as it will help you enjoy these benefits. Learn more about holding companies at https://cindysnewmexicollcs.com/LLC-Holding-Company-Benefits.