Obtaining an EIN for your New Jersey Business | 2023 Guide

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Obtain an EIN in New Jersey

As a business owner in The Garden State, it is crucial to understand the importance of an Employer Identification Number (EIN) and how it impacts your New Jersey LLC 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 New Jersey 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 New Jersey 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 New Jersey, businesses are required to have an EIN if they meet any of the following criteria:

  • Have employees
  • Operate as a Corporation or Partnership
  • 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

How to Obtain an EIN in New Jersey

Obtaining an EIN in New Jersey is a straightforward process; several methods are available to apply for one.

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 New Jersey and the rest of the United States. 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 New Jersey LLC the final advantage necessary to operate fully without legal or judicial issues.

If you have a Registered Agent, he can file for your EIN. Also, if you are planning to file for an LLC in New Jersey, your Registered Agent should file for the Certificate of Formation in the New Jersey Secretary of State.

Uses of EIN in New Jersey

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

Filing State and Federal Taxes

Businesses in New Jersey 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 New Jersey Division of Taxation. 

Be guided by the Small Business Tax article to know more about mandatory taxes in New Jersey.

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

As an EIN holder in New Jersey, 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.

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 New Jersey.

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

In New Jersey, the Annual Report fee costs around $75 which can be paid every 1 year (end of the anniversary month). 

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.

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 New Jersey

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

1. New Jersey State Tax Agency Information

The New Jersey 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.

2. New Jersey Business Registration Requirements

In addition to obtaining an EIN, businesses in New Jersey 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.

3. New Jersey Employer Tax Obligations and Filings

Employers in New Jersey must comply with various state tax obligations, such as withholding state income tax from employee wages and reporting these withholdings to New Jersey Division of Taxation. Research your business’s specific employer tax requirements in New Jersey.

4. Local Resources and Assistance for Businesses in New Jersey

Many local organizations and government agencies in New Jersey 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 New Jersey Division of Taxation to determine their requirements.

FAQs

What is an EIN?
An EIN is an Employer Identification Number, used to identify a business entity for tax purposes.
Does every business need an EIN in New Jersey?
No, not every business needs an EIN in New Jersey. However, if it has employees, it’s necessary to obtain one from the IRS.
How do I obtain an EIN in New Jersey?
You can obtain an EIN in New Jersey by applying online through the IRS website, by fax, by mail, or by telephone.
Can I apply for an EIN in person in New Jersey?
No, you cannot apply for an EIN in person in New Jersey. The application can only be completed online, by fax, mail, or telephone.
What information will I need to provide when applying for an EIN in New Jersey?
You will need to provide your business name, the type of entity, your name and address, and your Social Security Number or Individual Taxpayer Identification Number.
Can I use my Social Security Number instead of getting an EIN for my New Jersey business?
No, you cannot use your Social Security Number instead of getting an EIN for your New Jersey business.
How long does it take to obtain an EIN in New Jersey?
You can obtain an EIN in New Jersey instantly when applying online. Otherwise, it takes a few business days when applying by fax, mail, or telephone.
Is there a fee to obtain an EIN in New Jersey?
No, there is no fee to obtain an EIN in New Jersey.
Can non-US residents obtain an EIN for a business in New Jersey?
Yes, non-US residents can obtain an EIN for a business in New Jersey if they have a valid Taxpayer Identification Number.
Can I get an EIN for my New Jersey business if I don’t have a physical address in the state?
Yes, you can get an EIN for your New Jersey business even if you don’t have a physical address in the state.
How do I change the name of my New Jersey business with the IRS?
You can change the name of your New Jersey business with the IRS by completing Form SS-4 and indicating the new name on the application.
Can I obtain an EIN for my New Jersey sole proprietorship?
Yes, you can obtain an EIN for your New Jersey sole proprietorship if you employ other individuals.
Is an EIN required for a New Jersey LLC?
An EIN isn’t required for a New Jersey LLC, but it’s strongly recommended if you have more than one member or employee.
Can I use my existing EIN for a new business in New Jersey?
Yes, you can use your existing EIN for a new business in New Jersey if the new business is of the same legal entity type and you are the sole owner.
How can I cancel my EIN in New Jersey?
You can cancel your EIN in New Jersey by notifying the IRS in writing through a letter.
Can I retrieve my lost EIN confirmation letter in New Jersey?
Yes, you can retrieve your lost EIN confirmation letter in New Jersey by contacting the IRS and confirming your identity.
Can I transfer my EIN to a new owner in New Jersey?
No, you cannot transfer your EIN to a new owner in New Jersey.
How do I know if my New Jersey business needs an EIN for a state tax identification number?
You can check the requirements for your New Jersey business’s state tax identification number online with the NJ Department of the Treasury.
Can I use a third-party service to obtain an EIN in New Jersey?
Yes, you can use a third-party service to obtain an EIN in New Jersey for a fee.
Are there penalties for not obtaining an EIN for a New Jersey business?
Yes, there are penalties for not obtaining an EIN for a New Jersey business if one is required.
How do I update my New Jersey business information once I have an EIN?
You can update your New Jersey business information once you have an EIN by contacting the IRS by phone, fax, or mail.
Can I check the status of my EIN application in New Jersey?
Yes, you can check the status of your EIN application in New Jersey by calling the IRS or checking online.
Does obtaining an EIN mean I now have to pay taxes in New Jersey?
No, obtaining an EIN doesn’t mean you now have to pay taxes in New Jersey. Your business’s tax liability depends on your business’s income and other factors.
How do I change the address associated with my EIN in New Jersey?
You can change the address associated with your EIN in New Jersey by consulting with the IRS and completing the necessary form.
Can I obtain a temporary EIN for my New Jersey business?
No, there is no such thing as a temporary EIN for a New Jersey business.
Can I obtain an EIN for my New Jersey business if I’m a foreign person or entity?
Yes, as long as the foreign person or entity has a valid Taxpayer Identification Number.
How often do I need to renew or update my EIN for my New Jersey business?
Your EIN is assigned for the life of your business, and it doesn’t need to be renewed or updated unless it’s no longer accurate.
Will obtaining an EIN for my New Jersey business affect my personal credit score?
No, obtaining an EIN for your New Jersey business does not affect your personal credit score.
What is an EIN and why is it important in New Jersey?
An Employer Identification Number (EIN) is a unique nine-digit tax identification number assigned to businesses by the IRS and it’s important because it’s necessary for New Jersey businesses to fulfill their tax obligations.
How do I apply for an EIN for my business in New Jersey?
The easiest way to apply for an EIN as a New Jersey business owner is by using the IRS online EIN application.
Can I apply for an EIN for my inactive business in New Jersey?
Yes, you can apply for an EIN for your inactive business in New Jersey since there is no requirement that you actually be actively operating a business.
Is it necessary for my New Jersey business to apply for an EIN?
If your New Jersey business has employees or pays taxes, then obtaining an EIN is necessary.
If I am starting a new business, when should I apply for an EIN in New Jersey?
You should obtain an EIN for your new New Jersey business as soon as possible if you have any business activity.
Can I use my social security number instead of an EIN for my New Jersey small business tax filings?
No, using your social security number instead of an EIN is not recommended for New Jersey small business tax filings.
Can I change the name on my New Jersey EIN once it’s issued?
Yes, you can change the name for your New Jersey EIN if the name change is necessary due to a change in your business or organizational structure.
What do I need to have to apply for an EIN in New Jersey?
In order to apply for an EIN in New Jersey, you will need to have your legal name, trade name, physical address, and other basic information ready.
How long does it take to receive an EIN in New Jersey?
It only takes a few minutes to apply and receive an EIN in New Jersey using the online application.
Will I receive a confirmation letter after receiving my New Jersey business EIN?
Once you apply and receive your EIN immediately, be ready with a copy of EIN (SS-4).
Can I mail or fax my EIN application to the IRS in New Jersey?
Currently, electronic filing is just through the online process and every individual your New Jersey small business adds.
Can the owner or partner of a New Jersey business apply for an EIN or must the application only be made in the business name?
An authorized person such as the owner, partner, or principal officer is eligible to apply for an EIN on behalf of a New Jersey business.
What is the process for changing the address for a New Jersey business EIN with the IRS?
Notify in writing the Internal Revenue Service of changes by Use Form 8822.
Can I use my New Jersey EIN for multiple businesses or do I need a different EIN for each business?
If you are conducting multiple businesses that are separate legal entities, then you will need a separate EIN for each business in New Jersey.
Is it legal for my New Jersey business to have multiple EINs?
It is legal for a New Jersey business to have multiple EINs as long as each EIN is associated with a separate legal entity or entity.
how different applying for EIN for a nonprofit and standard tax-paying organization as mentioned in new jersey tax laws?
The process – whether I’ve nonprofit org or anything- remain the same.
How can I know if I need to obtain an EIN for the state of New Jersey?
Obtaining an EIN is necessary for all business types operating within the state of New Jersey, except for sole proprietors who have no employees.
What should I do if I lose my New Jersey EIN paperwork or number?
To find out your number, you can contact the IRS for assistance or check from previously sent email.
How do I know whether my business needs to register for taxes with the NJ Division of Revenue and Enterprise Services?
Your business might need to file business taxes but you can confirm if visit nj.gov.
Do I need a New Jersey EIN if my business will not hire employees?
Sole proprietors who don’t plan to hire employees don’t need an EIN in New Jersey, but they can obtain one at any time if needed in future.
Do parents with a small business whose children are part of the workforce need to obtain an EIN in New Jersey?
Yes, parents running a small business whose children are part of a workforce need to obtain an EIN in New Jersey.
Can I make a tax ID number change in New Jersey using the online IRS system?
You can change EIN details perform certain tax logistics by enlisting or re-enlisting itself with E-system through IRS.
Will I need to obtain more than one EIN if I change my New Jersey business entity type?
Yes, changing your business entity type in New Jersey can rarely be a good reason to obtain a new EIN.
Is it necessary to provide a business legal name or trade name on an EIN application in New Jersey?
Yes, the EIN application requires one vital unique puzzle-piece which is either a business legal name or a trade name.
Are there any specific requirements for New Jersey small businesses or nonprofits applying for a special tax classification?
Yes, depending on the tax classification it might require non-profit familiar with two IRS categories not used by the regular taxpaying groups in New Jersey.
Can I apply for an EIN over the phone in New Jersey?
IRS’ identification call unit typically only aid when the entire firms info. lies with them though, similar to online process.
Can I change the responsible party for my New Jersey business EIN?
Yes, to change the responsible party for a New Jersey EIN, submit Form 8822-B to the IRS.
Is it difficult to obtain an EIN in New Jersey?
Obtaining an EIN in New Jersey is simple and quick with the online application process making it easy without the services of any third party.

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Conclusion

In conclusion, understanding the importance and uses of an EIN in New Jersey 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 New Jersey to maximize your chances of success.

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