How to Obtain an EIN in Massachusetts | A Comprehensive Guide

Obtain an EIN in Massachusetts

In starting an LLC in Massachusetts, 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 Massachusetts 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 Massachusetts, businesses are required to have an EIN if they meet any of the following criteria:

  • Have employees
  • Operate as a Partnership or Corporation in Massachusetts
  • 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

Recommended: With LegalZoom’s EIN service, obtaining your business’s crucial tax ID becomes a breeze, saving you time and effort by handling the complexities so you can quickly set sail on your entrepreneurial voyage. We recommend –

LegalZoom$79 (Standard Fee)

How to Obtain an EIN in Massachusetts

Obtaining an EIN in Massachusetts 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 Massachusetts, with add-ons of obtaining an EIN.

LLC Service

Rating & Pricing

Top Features

Learn More

#1 Recommendation

$0 + State fee

  • Free LLC Formation

  • Legal Support

  • Highly Reputed Company

$299 + State fee

  • Single LLC formation package

  • Flat price for all services

  • Legal consultation

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 Massachusetts 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 Massachusetts 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 Massachusetts, your Resident Agent should file for the Certificate of Organization in Massachusetts.

Uses of EIN in Massachusetts

An EIN must run a business in Massachusetts. 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 Massachusetts business, you can check out the Best Banks in Massachusetts, which offer the best combination of fees, services, and convenience for your business needs.

Filing State and Federal Taxes

Businesses in Massachusetts 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 Massachusetts Department of Revenue.

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 Massachusetts. 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 Massachusetts, business license fee costs around the range of $50 – $300. You can check out Massachusetts 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 Massachusetts

As an EIN holder in Massachusetts, 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 Massachusetts.

To keep your business in good standing in Massachusetts, you must file an Annual Report with the Massachusetts 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 Massachusetts

Business owners in Massachusetts 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 Massachusetts, here are some state-specific resources and information related to EINs and taxation:

  • State Tax Agency Information: The Massachusetts 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 Massachusetts 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 Massachusetts must comply with various state tax obligations, such as withholding state income tax from employee wages and reporting these withholdings to Massachusetts Department of Revenue. Research your business’s specific employer tax requirements in Massachusetts.
  • Local Resources and Assistance for Businesses in Massachusetts: Many local organizations and government agencies in Massachusetts 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 Massachusetts Department of Revenue to determine their requirements.

FAQs

What is an EIN and why do I need one in Massachusetts?
An EIN is an Employer Identification Number, which is a federal tax ID number used to identify a business. In Massachusetts, you need an EIN to legally operate a business, hire employees, and file your business taxes.
Who needs to obtain an EIN in Massachusetts?
Any business owner who operates a business in Massachusetts and employs or plans to employ workers should obtain an EIN.
How do I obtain an EIN in Massachusetts?
You can obtain an EIN in Massachusetts by applying online through the IRS website, mailing or faxing Form SS-4 to the IRS, or by calling the IRS Business and Specialty Tax Line.
How long does it take to obtain an EIN in Massachusetts?
It typically takes only a few minutes to apply for an EIN online, or a few weeks if you apply by mail or fax.
Is there a fee to apply for an EIN in Massachusetts?
No, there is no fee to apply for an EIN in Massachusetts.
Can I apply for an EIN in Massachusetts if I already have one from another state?
Yes, if you already have an EIN from another state but are operating a business in Massachusetts, you must obtain a Massachusetts state tax ID number in addition to your federal EIN.
Is an EIN the same as a Massachusetts state tax ID number?
No, while they serve similar purposes, an EIN is a federal tax ID number whereas a Massachusetts state tax ID number is issued by the Massachusetts Department of Revenue.
Is an EIN required for all types of businesses in Massachusetts?
Yes, all types of businesses need an EIN in Massachusetts, including sole proprietorships, partnerships, corporations, and LLCs.
Can I use my social security number instead of an EIN for my business in Massachusetts?
No, using your social security number is not recommended for business purposes in Massachusetts. You must obtain an EIN for your business.
If I operate a business solely in Massachusetts and do not have any employees, do I still need an EIN?
Yes, you still need an EIN in Massachusetts even if you do not have any employees.
Can I apply for an EIN in Massachusetts if I have not yet registered my business with the state?
Yes, you can still apply for an EIN in Massachusetts even if you have not yet registered your business with the state.
What information do I need to apply for an EIN in Massachusetts?
You will need to provide information about your business, including its legal name, physical address, and the name and Social Security Number or TIN of its owner.
Can I change the legal name or address associated with my EIN in Massachusetts?
Yes, you can change the legal name, address, or other information associated with your EIN by updating the IRS directly.
How long is an EIN valid for in Massachusetts?
Your EIN is always valid for your federal income tax needs, but for Massachusetts-related purposes it depends on your business needs.
Can I obtain an EIN over the phone in Massachusetts?
Yes, you can call the IRS Business and Specialty Tax Line to apply for an EIn in Massachusetts.
How do I know if I need to apply for a Massachusetts state tax ID number?
If you operate a business in Massachusetts and have employees, collect sales tax, or have any tax responsibility with the Massachusetts Department of Revenue, you will need to obtain a Massachusetts state tax ID number.
Will I receive a physical certificate or document after obtaining an EIN in Massachusetts?
No, you will not receive a physical certificate or document after obtaining an EIN in Massachusetts. Your EIN will be provided to you electronically.
Can someone else apply for an EIN on behalf of my business in Massachusetts?
Yes, someone else can apply for an EIN on behalf of your business in Massachusetts, but they must have authorization to do so.
What do I need to do with my EIN number once I obtain it in Massachusetts?
You should keep your EIN number in a safe place, as you may need to reference it when filing your business taxes or dealing with the IRS.
Do I need to display my EIN number on my website or marketing materials in Massachusetts?
No, you do not need to publicly display your EIN number on your website or marketing materials in Massachusetts.
Do I need to renew my EIN in Massachusetts each year?
No, your EIN does not need to be renewed in Massachusetts.
What should I do if I lose my EIN number in Massachusetts?
If you lose your EIN number in Massachusetts, you can contact the IRS to retrieve it.
How can I update my EIN information in Massachusetts?
You can update your EIN information by contacting the IRS directly.
What documents do I need to submit to apply for an EIN in Massachusetts?
You do not need to submit any documents to the IRS if you are applying online. If you are mailing or faxing your application, you should include a completed Form SS-4.
Can I change my EIN number in Massachusetts?
No, you cannot change your EIN number in Massachusetts. If you need to change your business information, you can update it with the IRS.
Can I use my spouse’s EIN number for my business in Massachusetts?
No, you cannot use your spouse’s EIN number for your business in Massachusetts.
Can a trust in Massachusetts apply for an EIN?
Yes, a trust in Massachusetts can apply for an EIN by providing all the necessary information and documentation.
Do I need a separate EIN for each business I operate in Massachusetts?
Yes, each business you operate in Massachusetts will need its own separate EIN.
What is an EIN?
An EIN is a tax identification number assigned by the IRS for businesses and organizations.
Are Massachusetts EIN applications processed faster than other states?
No, Massachusetts EIN applications are reviewed and processed in the same manner as all other state applications.
What information will I need to provide when applying for an EIN in Massachusetts?
You will need to provide basic information about your business or organization such as name, address, and structure.
Can I apply for an EIN in Massachusetts if my business is located outside the state?
Yes, as long as you have a mailing address within the United States, you can apply for an EIN in Massachusetts.
Do I have to be a resident of Massachusetts to apply for an EIN in the state?
No, there are no residency requirements for obtaining an EIN in Massachusetts.
How much does it cost to obtain an EIN in Massachusetts?
Applying for an EIN in Massachusetts is free.
How long does it take to receive an EIN in Massachusetts?
It typically takes 1-2 weeks to process an EIN application in Massachusetts.
Can I obtain an EIN on behalf of someone else in Massachusetts?
Yes, as long as you have a valid Power of Attorney.
What types of organizations are required to have an EIN in Massachusetts?
All businesses and organizations that are required to file taxes with the IRS are required to have an EIN.
Is there a penalty for not obtaining an EIN in Massachusetts?
Yes, there are penalties for failing to obtain an EIN if required.
Can I change my EIN info in Massachusetts?
Yes, you can update your EIN information at any time by contacting the IRS.
Can I use my Social Security Number instead of an EIN for my business in Massachusetts?
No, a business cannot use an individual’s social security number as an EIN.
What is an EIN used for in Massachusetts?
An EIN is used for tax reporting and has business-related implications, such as opening bank accounts or business visas.
How long is an EIN valid in Massachusetts?
An EIN is valid for as long as the business or organization maintains this structure
Does a sole proprietorship need an EIN in Massachusetts?
If you are a sole proprietor, you are not required to get an EIN unless you have employees. However, it may help you set up a separate business identity.
Can I use my deceased spouse’s EIN in Massachusetts?
No, the deceased spouse’s EIN remains with their business or estate, so it isn’t transferable.
Should I protect my EIN?
You should protect your EIN as you would any sensitive information about your business or organization.
Should I obtain an EIN if I am starting a new business partnership in Massachusetts?
Yes, a partnership needs an EIN for tax filing and accounting.
Can foreigners obtain an EIN in Massachusetts?
Foreign businesses that operate In the US can apply for an EIN in Massachusetts.
In what cases should I not OR apply to get an EIN in Massachusetts?
You should not apply to get an EIN if you do not require one for tax filings.
When must I notify the IRS about changes in my EIN info?
You should notify the IRS of changes to your EIN information within 60 days.
Can I reuse an EIN?
No, EIN’s cannot be reused or transferred according to the nature of each organization respective EIN.
Who needs to apply for an EIN under my name if I started something jointly in Massachusetts?
It depends on the nature of the joint business structure if you are filing taxes jointly then the EIN application needs to be carried jointly.
Should I have my state documents for my business to obtain an EIN?
Yes, you will need to provide basic information and documentation about your business or organization when applying for an EIN in Massachusetts.
Is there an expedited service available to obtain and EIN number in Massachusetts?
It is recommended to allow enough time before to the tax-filing deadline when applying for an EIN in Massachusetts.
Will I receive a physical certificate with my EIN in Massachusetts?
No, you will receive acknowledgment of your EIN by mail.
Can I get my Massachusetts EIN from the IRS offices?
No, and Eastern Massachusetts-based applicants should apply only using file-based methods.

Also Read

How to Save Money While Getting Ein for Massachusetts LLC

First and foremost, it’s important to understand what an EIN is and why you need one for your LLC. An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for tax purposes. It’s essentially your business’s social security number and is used to file taxes, apply for business licenses, open a business bank account, and hire employees.

To save money while obtaining an EIN for your Massachusetts LLC, consider applying for it yourself online for free through the IRS website. While it may seem more convenient to use a third-party service or accountant to obtain your EIN, these services often come with a hefty fee that can be avoided by applying directly through the IRS. The online application process is simple and straightforward, and you will receive your EIN immediately upon completion.

Another way to save money on your EIN for your Massachusetts LLC is to bundle it with other necessary paperwork. When starting a business, there are several forms and applications that need to be filed with the state, such as registering your LLC with the Secretary of State and obtaining any necessary business licenses or permits. If you are able to bundle your EIN application with these other filings, you may be able to save on filing fees and expedite the process of getting your business up and running.

Additionally, consider reaching out to your local Small Business Development Center (SBDC) or Chamber of Commerce for guidance on obtaining an EIN for your Massachusetts LLC. These organizations often offer free or low-cost resources and assistance to small business owners, including help with obtaining an EIN. By utilizing these resources, you can save money on consulting fees and gain valuable insight into the process of starting a business in Massachusetts.

Finally, when applying for your EIN, be sure to have all necessary information and documentation ready to expedite the process. This includes details about your business, such as the legal name of your LLC, the address of your business, and the type of business activities you will be conducting. Having this information readily available will ensure a smooth and efficient application process, saving you time and potentially money.

In conclusion, obtaining an EIN for your Massachusetts LLC doesn’t have to break the bank. By applying for your EIN yourself, bundling it with other necessary paperwork, seeking assistance from local resources, and being prepared with all necessary information, you can save money while still getting your business off the ground. Remember, every dollar saved in the early stages of starting your LLC is a dollar that can be reinvested back into your business for growth and success.

Conclusion

Understanding the importance and uses of an EIN in Massachusetts 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 Massachusetts to maximize your chances of success.

Leave a Comment