Obtaining an EIN for your New York Business | 2023 Guide

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Obtain an EIN in New York

As a business owner in The Empire State, it is crucial to understand the importance of an Employer Identification Number (EIN) and how it impacts your New York 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 York 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 York 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 York, 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 York

Obtaining an EIN in New York 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 York 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 York LLC the final advantage necessary to operate fully without legal or judicial issues.

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

Uses of EIN in New York

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

Filing State and Federal Taxes

Businesses in New York 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 York State Department of Taxation and Finance. 

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

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

As an EIN holder in New York, 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 York.

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

In New York, the Biennial Report fee costs around $4.50 which can be paid every 2 years (end of 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 York

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

1. New York State Tax Agency Information

The New York 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 York Business Registration Requirements

In addition to obtaining an EIN, businesses in New York 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 York Employer Tax Obligations and Filings

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

4. Local Resources and Assistance for Businesses in New York

Many local organizations and government agencies in New York 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 York State Department of Taxation and Finance to determine their requirements.

FAQs

What is an EIN?
An EIN, or employer identification number, is a unique nine-digit number assigned by the IRS to identify your business entity.
Can I obtain an EIN for my New York business online?
Yes, you can obtain an EIN for your New York business online through the IRS website.
How much does it cost to apply for an EIN for my New York business?
Applying for an EIN for your New York business is free of charge.
Is an EIN required for all New York businesses?
An EIN is typically required for businesses that have employees, operate as partnerships or corporations, or are required to file certain tax forms.
Do sole proprietorships need an EIN in New York?
Sole proprietorships in New York do not necessarily need an EIN, but it is still recommended to obtain one for tax purposes.
How long does it take to obtain an EIN for my New York business?
You can usually obtain an EIN for your New York business immediately after applying online.
Can I use my personal social security number instead of an EIN for my New York business?
It is not recommended to use your personal social security number for your New York business, as it can put your personal assets at risk.
Does my New York business need to be registered before applying for an EIN?
Yes, your New York business must be legally registered before you can apply for an EIN.
What information do I need to provide when applying for an EIN for my New York business?
You will need to provide basic identifying information, such as your business name, address, and structure.
Can I change my New York business’s EIN after it has been assigned?
Yes, but it can be complex, and it’s often better to avoid the need for a change by establishing the EIN correctly at the outset.
How do I close an EIN for my New York business?
You can close an EIN for your New York business by notifying the IRS in writing and providing certain information.
Can I apply for an EIN before my New York business is officially formed?
No, your New York business must be officially formed before you can apply for an EIN.
How will I receive my New York business’s EIN?
Your New York business’s EIN will be provided immediately upon applying online.
Do I need to apply for a separate EIN for each project or location in New York?
No, you do not need to apply for a separate EIN for each project or location in New York.
Do I need an EIN for my New York nonprofit organization?
Yes, nonprofit organizations in New York are still required to have an EIN.
Can I use my personal bank account for my New York business’s EIN?
It is recommended to have a separate bank account for your New York business, but you can use your personal account if needed.
Why might my New York business need an EIN if it does not have any employees?
An EIN can help with tax reporting and bureaucratic processes, and might also be required if you’re opening a business bank account.
What do I do if I lose or forget my New York business’s EIN?
You can retrieve your New York business’s EIN by calling the IRS or by visiting their website.
Can legal entities without a physical presence in New York obtain an EIN for doing business in New York state?
Yes, businesses without a physical presence in New York can obtain an EIN for doing business in the state.
How do I apply for an EIN in a language other than English if my business is located in New York?
You can apply for an EIN in a language other than English by calling the IRS or by hiring a third-party agent.
Do foreign companies operating in New York need to apply for an EIN?
Yes, foreign companies operating in New York must apply for an EIN.
Can a New York LLC obtain a single EIN for multiple member-managed LLCs?
No, each LLC under a single parent LLC must obtain their own EIN in New York.
Can I reuse a former EIN for a New York business I previously owned?
No, EINs are not generally transferable between businesses, even if they are located in the same state.
How do I apply for an EIN for my New York trust?
You can apply for an EIN for your New York trust online.
What documents do I need to provide when applying for an EIN for my New York partnership?
When applying for an EIN for your New York partnership, you will need to provide various legal documents, including a partnership agreement.
Can I apply for an EIN for my New York business by mail or fax?
No, you cannot apply for an EIN for your New York business by mail or fax.
What if I don’t know the answer to a question when applying for an EIN for my New York business?
You can leave that section blank and answer it later, or you can contact the IRS for assistance.
What if I make an error when applying for an EIN for my New York business?
You can change or correct your EIN application by calling the IRS or by filling out a formal amendment.
Do I need to provide additional information when renewing my New York business’s EIN?
No, you do not need to provide additional information when renewing your New York business’s EIN.
Who needs an EIN in New York?
Generally, any business entity that has employees or meets other specific criteria needs an EIN in New York.
Can I apply for an EIN online in New York?
Yes, the IRS offers an online EIN application for New York businesses.
How long does it take to get an EIN in New York?
In most cases, you’ll receive your EIN immediately after completing the application, either online or by mail.
Is there a fee to apply for an EIN in New York?
No, there is no fee to apply for an EIN in New York.
Can I apply for an EIN in New York if I live outside the United States?
Yes, you can apply for an EIN in New York from anywhere in the world.
Can a sole proprietorship get an EIN in New York?
Yes, a sole proprietorship can get an EIN in New York if it has employees or meets other criteria.
Is an EIN the same as a New York State Tax ID?
No, an EIN is a federal identification number, while a New York State Tax ID is a state-level tax identification number.
Can I get an EIN for a nonprofit organization in New York?
Yes, nonprofits in New York can apply for an EIN if they have employees or meet other criteria.
Can a foreign company get an EIN in New York?
Yes, foreign companies that need to operate in the United States can apply for an EIN in New York.
When should I apply for an EIN in New York?
You should apply for an EIN in New York as soon as you begin planning your business or hiring employees.
Do I need an EIN to open a bank account in New York?
Yes, banks typically require a business to have an EIN before opening a business bank account in New York.
Can I use my Social Security Number instead of an EIN in New York?
Generally, no. If you have a different type of identification number or tax ID in New York, that might be what you will use instead of your Social Security Number.
How will I receive my EIN after I apply in New York?
If you apply online, you’ll receive your EIN immediately upon completing the application. If you apply by mail, you’ll receive your EIN in about 4 weeks.
What type of identification do I need to apply for an EIN in New York?
You will need your social security number and the physical address of your business in NY and type of business.
How many EINs can one business have in New York?
Generally, businesses are only allowed to have one EIN in New York. If a company restructures or reincorporates then eagain you’d want to research to determine it affects them.
Can I cancel an EIN in New York if I no longer need it?
Yes, you can formally request the IRS to close your existing EIN for your any business.
Can I use the same EIN for multiple businesses in New York?
You are able to use same EIN number as long as the businesses are in the same Financial or operational holding.
Who can apply for an EIN in New York?
Any business owner or authorized officer is able to apply on behalf of a business operating in New York State.
What if I misplaced my EIN letter for the NYS Insurance ID?
If you lost the insurance IAM in New York, contact your provider for assistance.
Do I need to renew my EIN in New York?
An EIN is essentially assigned for the life of the business entity or owner. Hence, you can keep it throughout. Never have to abandon it.
Can I change my business name or address on my EIN in New York?
Yes – these changes or updates are by forms to be completed by the governing degree that will notify of changes and verify future correspondence in New York.
What happens if I lost my EIN confirmation New York after approval?
If that EIN confirmation number is lost withno saved file, notated or inaccuracies prevail, authenticate with IRS directly or new numbers etc.
Why do I need to file any tax forms for my NY EIN?
Filing all tax returns at federal or state level is very important as unpaid withholding, payroll tax or any accepted past incorrect remuneration in NY, have serious consequences down the road.
Is an EIN proof of legal presence or helps in getting Benefits Coverage under Immigration laws in New York?
IRS explicitly states that EIN does not predict nor endorse any entity or legal standing, immigrant or non-/non-immigrant status for FICA purposes.
What if I move my business to another state after getting an EIN in New York?
Answer:This circumstances in federal which so there your EIN will remain the same therefore no need to apply thus retaining tracking progress accordingly by the NY registrered offices.

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Conclusion

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

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