How to Obtain an EIN in Maryland | A Comprehensive Guide

Obtain an EIN in Maryland

In starting an LLC in Maryland, it is crucial to understand the importance of an Employer Identification Number (EIN) and how it impacts your business operations. An EIN is a unique nine-digit number the Internal Revenue Service (IRS) assigns to businesses operating in the United States for identification purposes. This number is essential for running a business, such as filing taxes, opening bank accounts, and hiring employees.

This article will explore the complete guide to obtaining an EIN in Maryland and the responsibilities and requirements associated with having an EIN.

Webinarcare Editorial Team will help you understand the process of obtaining an EIN. You must be guided by all the factors gathered in this article.

EIN Definition and Purpose

To form an LLC, an EIN is necessary for your business. An Employer Identification Number (EIN) is a federal tax identification number used by the Internal Revenue Service (IRS) to identify businesses in the United States. It is similar to a Social Security Number (SSN) for individuals but is specifically designed for businesses. The main purpose of an EIN is to help the IRS track and administer taxes for companies.

In Maryland, businesses are required to have an EIN if they meet any of the following criteria:

  • Have employees
  • Operate as a Partnership or Corporation in Maryland
  • File tax returns for employment, excise, or Alcohol, Tobacco, and Firearms (ATF) taxes
  • Withhold taxes on income, other than wages, paid to a non-resident alien
  • Have a Keogh plan (a tax-deferred pension plan for self-employed individuals or unincorporated businesses)
  • Are involved with trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmers’ cooperatives, or plan administrators

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How to Obtain an EIN in Maryland

Obtaining an EIN in Maryland is a straightforward process; several methods are available to apply for one. However, if you want to be at ease with the process you can hire an LLC Services in Maryland, with add-ons of obtaining an EIN.

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Online Application Process

The easiest and fastest way to obtain an EIN is by applying online through the IRS website. The online application is available for businesses in Maryland and the rest of the United States.

irs

To apply for an EIN online, follow these steps:

  1. Visit the IRS EIN Assistant webpage.
  2. Click “Apply Online Now” and follow the prompts to complete the application.
  3. Provide the necessary information, such as your legal name, trade name (if applicable), business address, and the responsible party’s Social Security Number or Individual Taxpayer Identification Number.
  4. Select the appropriate legal structure for your business (e.g., sole proprietorship, general partnership, corporation, etc.).
  5. Provide additional information as required, such as the number of employees, the reason for applying, and the primary business activity.
  6. Review and submit your application.

Upon successful completion of the application, you will receive your EIN immediately. Save or print a copy of the confirmation notice for your records.

Other Application Methods

If you prefer not to apply online or are unable to access the online application, you can also obtain an EIN through the following methods:

  • Fax: Complete Form SS-4 (Application for Employer Identification Number) and fax it to the appropriate fax number listed on the IRS website. You should receive your EIN within four business days.
  • Mail: Complete Form SS-4 and mail it to the appropriate address on the IRS website. The processing time for mailed applications is approximately four weeks.
  • Telephone: International applicants can apply for an EIN by calling the IRS at 267-941-1099 (not a toll-free number) from 6:00 a.m. to 11:00 p.m. Eastern Time, Monday through Friday.

After you have your EIN number, you can benefit in several ways. It will give your Maryland LLC the final advantage necessary to operate fully without legal or judicial issues.

If you have a Resident Agent, he can file an EIN for your business. Also, if you are planning to file for an LLC in Maryland, your Resident Agent should file for the Articles of Organization in Maryland.

Uses of EIN in Maryland

An EIN must run a business in Maryland. Some of the primary uses for an EIN include:

Opening a Business Bank Account

Banks typically require an EIN to open a business bank account, which is essential for separating your personal and business finances. With a business bank account, you can accept payments, deposit funds, and manage your company’s finances more efficiently.

If you are planning a bank for your Maryland business, you can check out the Best Banks in Maryland, which offer the best combination of fees, services, and convenience for your business needs.

Filing State and Federal Taxes

Businesses in Maryland must file taxes with both the state and federal governments, and an EIN is necessary to report and pay these taxes. Your EIN is used on various tax forms, such as income tax returns, employment tax returns, and excise tax returns which you can pay in Maryland Comptroller of Maryland.

Payroll and Employee Tax Reporting

If your business has employees, you will need an EIN to report wages and other compensation paid to your workers. Additionally, an EIN is required for withholding and remitting federal income and payroll taxes on your employees’ behalf.

If you hire an employee for your business, you must request that your employees complete the following forms:

  • Employment Eligibility Form
  • Federal Tax Withholding Form
  • W-4 Form
  • Workers Compensation Claim Form
  • Disability Self-Identification Form
  • U.S. Citizenship and Immigration Services Form

Applying for Business Licenses and Permits

An EIN is often required when applying for business licenses and permits in Maryland. These licenses and permits may be necessary for various aspects of your business operations, such as zoning approval, health permits, or sales tax registration.

In Maryland, business license fee costs around the range of $50 – $300. You can check out Maryland Business Licenses to learn more about licenses and permits.

Establishing Credit and Securing Loans

An EIN can help your business establish credit, as it serves as an identifier for your company in the eyes of financial institutions. Additionally, lenders may require an EIN when applying for business loans or lines of credit.

Responsibilities and Requirements for EIN Holders in Maryland

As an EIN holder in Maryland, you are responsible for several tasks related to maintaining and managing your EIN. Some of these responsibilities and requirements include:

Updating the IRS on Changes to Business Information

If your business undergoes significant changes, such as a change in address, legal structure, or a responsible party, you must inform the IRS by filing the appropriate forms. This ensures the IRS has accurate and up-to-date information about your business and can properly administer taxes.

update my information

You can go to the Update My Information website of the Internal Revenue Service.

Required Tax Filings and Payments

With an EIN, your business is responsible for filing various tax returns and making tax payments to federal and state governments. Be informed about the specific tax obligations for your business type and industry in Maryland.

To keep your business in good standing in Maryland, you must file an Annual Report with the Maryland Secretary of State. The annual report provides updated information about your LLC, such as changes in address, members, or Resident Agent.

Record-Keeping Requirements

Proper record-keeping is essential for businesses with an EIN, as it helps ensure accurate tax reporting and compliance with laws and regulations. Maintain records of your company’s income, expenses, and other financial transactions to facilitate accurate tax filing and minimize potential issues with the IRS.

Establish a reliable accounting system to track income, expenses, and tax obligations. You can manage your finances using spreadsheets, accounting software, or hiring a professional accountant.

Closing an EIN Account

Suppose your business ceases operations or no longer requires an EIN. In that case, you must notify the IRS by submitting a letter containing your complete legal name, EIN, business address, and the reason for closing the account. This allows the IRS to update its records and prevent future tax-related issues.

cancel EIN

If you have a copy of the EIN Assignment Notice that was issued when your EIN was assigned, include that when you write it to the IRS with the below mailing address:

  • Internal Revenue Service MS 6055 Kansas City, MO 64108
  • Internal Revenue Service MS 6273 Ogden, UT 84201

Or, you can check out Canceling an EIN via the IRS for further information.

Common Issues and Solutions for EIN in Maryland

Business owners in Maryland may encounter issues related to their EIN, such as losing or misplacing the number, incorrect information on the EIN application, or changes in business structure or ownership. Here are some solutions to common EIN-related problems:

  • Lost or Misplaced EIN: If you lose or misplace your EIN, you can contact the IRS by calling their Business & Specialty Tax Line at 1-800-829-4933. The IRS representative can provide you with your EIN after verifying your identity.
  • Incorrect Information on EIN Application: Suppose you discover an error on your EIN application, such as an incorrect business name or address. In that case, you can correct the information by submitting a letter to the IRS detailing the changes. Be sure to include your EIN, the incorrect information, and the correct information in your letter.
  • Change in Business Structure or Ownership: If your business undergoes a significant legal structure or ownership change, you may need to obtain a new EIN. Consult the IRS guidelines to determine if a new EIN is necessary.
  • Dealing with Identity Theft or Fraud: If you suspect your EIN has been compromised or used fraudulently, immediately report the issue to the IRS. The IRS can guide you through the steps to secure your EIN and protect your business from potential tax-related issues.

State-Specific EIN Information and Resources

To further assist businesses in Maryland, here are some state-specific resources and information related to EINs and taxation:

  • State Tax Agency Information: The Maryland state tax agency can provide information on state tax requirements, forms, and filing deadlines. Be sure to familiarize yourself with the state tax obligations for your business type and industry.
  • Business Registration Requirements: In addition to obtaining an EIN, businesses in Maryland must also register with the appropriate state agencies. This may include registering your business name, obtaining necessary licenses and permits, and registering for state taxes.
  • Employer Tax Obligations and Filings: Employers in Maryland must comply with various state tax obligations, such as withholding state income tax from employee wages and reporting these withholdings to Maryland Comptroller of Maryland. Research your business’s specific employer tax requirements in Maryland.
  • Local Resources and Assistance for Businesses in Maryland: Many local organizations and government agencies in Maryland offer resources and assistance for small business owners. These resources may include business counseling, training, and financial assistance programs.

Do I Need to Apply for an EIN If I Also Have Business In Other States?

Yes, if you are operating a business with employees, have a corporation or partnership, or are required to file employment, excise, or alcohol, tobacco, and firearms tax returns, you will need an EIN (Employer Identification Number). If your business operates in multiple states, you only need one EIN for federal tax purposes. However, you may need to register for state-specific tax identification numbers in each state where you conduct business. Check with the Maryland Comptroller of Maryland to determine their requirements.

FAQs

What is an EIN?
An Employer Identification Number (EIN) is a federal tax identification number issued by the IRS.
How do I obtain an EIN in Maryland?
You can apply for an EIN through the IRS website.
Do I need an EIN if I am a sole proprietor in Maryland?
It is not required, but you may want to obtain an EIN for tracking purposes or if you plan to hire employees in the future.
How long does it take to get an EIN in Maryland?
EINs are typically issued immediately after completing the online application.
What is the cost of obtaining an EIN in Maryland?
There is no cost to obtain an EIN.
Do I need an EIN if I am a single-member LLC in Maryland?
Yes, you will need an EIN for tax purposes.
Can I apply for an EIN by mail in Maryland?
No, applications for EINs must be completed online.
Do I need an EIN to open a business bank account in Maryland?
In most cases, yes.
How do I update my EIN information if my Maryland business name changes?
You can update your EIN information by notifying the IRS with Form 8822-B.
Do I need a separate EIN for each business I own in Maryland?
Yes, each business requires a separate EIN.
Can I apply for an EIN in person in Maryland?
No, applications for EINs must be completed online.
How do I cancel my EIN in Maryland?
You cannot cancel an EIN, but you can close your business and notify the IRS with Form 966.
Is an EIN necessary for a non-profit organization in Maryland?
Yes, non-profit organizations also need an EIN.
How do I change the responsible party on an EIN for my Maryland business?
You can change the responsible party by notifying the IRS with Form 8822-B.
When do I need to renew my EIN in Maryland?
EINs do not need to be renewed, but they need to be updated if there are changes to the business.
Can I obtain an EIN for a business registered in another state but operating in Maryland?
Yes, you can obtain an EIN for any business operating in the United States.
How do I change my Maryland business address with the IRS?
You can change your address by notifying the IRS with Form 8822-B.
How do I obtain an EIN for an estate in Maryland?
You can obtain an EIN for an estate by completing Form SS-4 and mailing it to the IRS.
Can I use one EIN for multiple businesses in Maryland?
No, each business requires a separate EIN.
Do independent contractors need an EIN for their business in Maryland?
It depends on the type of business and structure of the contract.
Can I change my Maryland business entity type with an existing EIN?
It is possible to change your business entity type with an existing EIN, but you may need to apply for a new EIN.
How do I apply for an EIN if my Maryland business has no employees?
Apply for an EIN on the IRS website in the same way you would for a business with employees.
How do I find my EIN for my Maryland business if I forgot it?
Contact the IRS or check previous tax returns to find your EIN.
Can I use my personal social security number (SSN) instead of an EIN for my Maryland business?
It depends on the structure of your business. An EIN is typically required for certain business structures.
Can I obtain an EIN for my Maryland business if I already have another EIN for a different business?
Yes, you can obtain multiple EINs for multiple businesses.
Do I need an EIN if I am a foreign entity doing business in Maryland?
Yes, foreign entities must obtain an EIN to do business in the United States.
How can I check if my Maryland EIN is valid?
Your EIN is included on a notice from the IRS confirming your number was issued. This can be used to verify its validity.
Who needs an EIN in Maryland?
Any business entity that intends to operate in Maryland, including corporations, LLCs, partnerships, and sole proprietors.
How can I obtain an EIN in Maryland?
You can apply online or by mail. You can also apply by fax or phone, though this method takes longer.
Is there a fee to obtain an EIN in Maryland?
No, there is no fee to get an EIN.
Can I apply for an EIN online in Maryland?
Yes, you can apply online using the IRS website.
How long does it take to get an EIN in Maryland when applying online?
Typically, you will receive your EIN immediately after completing the online application.
How long does it take to obtain an EIN in Maryland when applying by mail?
It can take up to four weeks to receive an EIN when applying by mail.
What information do I need to include on my EIN application in Maryland?
You will need to provide your business name, address, and type of business entity, as well as your name and the name(s) of any other owners.
Can I apply for an EIN as a foreign entity in Maryland?
Yes, a foreign entity can apply for an EIN in Maryland as long as they have a Social Security Number or Individual Taxpayer Identification Number.
Can I change my EIN in Maryland?
No, once an EIN is assigned, it cannot be changed. However, you can apply for a new EIN under certain circumstances.
Is my EIN valid outside of Maryland?
Yes, an EIN is valid throughout the United States.
How do I verify my EIN in Maryland?
Call the IRS Business and Specialty Tax Line at 1-800-829-4933 to confirm your EIN.
Can I reactivate my EIN in Maryland?
No, you cannot reactivate a closed EIN. You will need to apply for a new EIN.
Can I use my SSN instead of an EIN for my business in Maryland?
No, it is recommended that you obtain an EIN for your business for tax and legal purposes.
Can I apply for an EIN for my Maryland business if I don’t have employees?
Yes, you can apply for an EIN even if you don’t have any employees.
How can I address additional questions about obtaining an EIN in Maryland?
You can contact the IRS or consult with a tax professional.
Is my EIN the same as a Maryland tax ID number?
No, your EIN is assigned by the IRS while a Maryland tax ID number is assigned by the Comptroller’s Office.
Will I receive a physical EIN card when I apply for an EIN in Maryland?
No, the IRS typically does not issue physical EIN cards.
Can I use my EIN as proof of identity in Maryland?
No, an EIN cannot be used as proof of identity, as it is primarily for tax purposes.
Will my EIN expire in Maryland?
No, an EIN is a permanent number and will not expire.
Do I need to obtain a new EIN if I change my business name in Maryland?
Yes, you will need to apply for a new EIN if you change your business name.
Can I apply for an EIN on behalf of another person or entity?
No, you may not apply for an EIN on behalf of another entity unless you have specific legal authority.
Do I need to renew my EIN in Maryland?
No, an EIN does not need to be renewed.
Is it safe to apply for an EIN online in Maryland?
Yes, the IRS website uses encryption to protect personal and financial information.
What happens if I lose my EIN in Maryland?
You can call the IRS Business and Specialty Tax Line at 1-800-829-4933 to obtain your lost EIN.
How can I check the status of my EIN application in Maryland?
You can check your EIN application status online after a few days of applying.
Is an EIN the same as a state tax ID number in Maryland?
No, an EIN is assigned by the IRS while a state tax ID number is assigned by the Maryland Comptroller’s Office.
Can I apply for an EIN over the phone in Maryland?
Yes, you can call the IRS Business and Specialty Tax Line at 1-800-829-4933 to apply for an EIN over the phone.

Also Read

How to Save Money While Getting Ein for Maryland LLC

One of the best ways to save money when getting an Ein for your Maryland LLC is to utilize online resources and tools. There are plenty of websites and services available that can streamline the application process and help you avoid expensive fees that can quickly add up. By utilizing online platforms, you can save time and money, allowing you to focus on other aspects of growing your business.

Another way to save money on obtaining an Ein for your Maryland LLC is to take advantage of any available discounts or promotions. Many services offer special deals for first-time users or offer discounted rates for early registration. By keeping an eye out for these offers, you can save a significant amount of money while still receiving the necessary documentation for your business.

Additionally, when establishing a Maryland LLC, it is important to thoroughly research and compare different service providers. Prices can vary greatly between different companies, so it is essential to shop around and find the best deal for your specific needs. Look for reputable companies with positive reviews and a history of providing excellent service to ensure you are getting the most bang for your buck.

Another cost-saving tip when obtaining an Ein for your Maryland LLC is to consider completing the application process yourself. While it may be tempting to hire a professional to handle the paperwork for you, doing it yourself can save a substantial amount of money. There are plenty of resources available online that can guide you through the process, making it easy and cost-effective to obtain your Ein without the need for expensive professional assistance.

Finally, consider bundling services when setting up your Maryland LLC. Many companies offer package deals that include multiple services at a discounted rate. By bundling services such as business formation, Ein application, and registered agent services, you can save money and simplify the process of getting your business up and running.

In conclusion, saving money while getting an Ein for your Maryland LLC is essential for any business owner looking to establish a successful venture. By utilizing online resources, taking advantage of discounts and promotions, comparing service providers, completing the application process yourself, and bundling services, you can significantly reduce the cost of setting up your business. With these cost-saving tips in mind, you can ensure that your Maryland LLC is established efficiently and affordably, setting you up for success in the competitive business world.

Conclusion

Understanding the importance and uses of an EIN in Maryland is crucial for the successful operation of your business. By obtaining and maintaining your EIN, you can ensure compliance with federal and state tax laws, establish a strong financial foundation for your company, and access various resources and opportunities for growth. Be sure to utilize the available resources and support for businesses in Maryland to maximize your chances of success.

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