How to Obtain an EIN in North Dakota | A Comprehensive Guide

by
Obtain an EIN in North Dakota

In starting an LLC in North Dakota, 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 North Dakota 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.

How to Obtain an EIN in North Dakota

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

  • Have employees
  • Operate as a Partnership or Corporation in North Dakota
  • 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 North Dakota

Obtaining an EIN in North Dakota 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 North Dakota, 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

Learn More

$299 + State fee

  • Single LLC formation package

  • Flat price for all services

  • Legal consultation

Learn More

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 North Dakota 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 North Dakota LLC the final advantage necessary to operate fully without legal or judicial issues.

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

Uses of EIN in North Dakota

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

Filing State and Federal Taxes

Businesses in North Dakota 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 North Dakota Office of State Tax Commissioner.

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

As an EIN holder in North Dakota, 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 North Dakota.

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

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

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

FAQs

What is an EIN in North Dakota?
EIN stands for Employer Identification Number. It’s a unique nine-digit number assigned by the IRS to businesses operating in North Dakota.
Do I really need an EIN for my North Dakota business?
Every business needs an EIN, whether it’s operated in North Dakota or any other state.
Do I have to apply for an EIN if I live in North Dakota and own a sole proprietorship?
Only if you have employees. Sole proprietors who don’t have any employees can just use their Social Security Number instead of obtaining an EIN in North Dakota.
Can I get an EIN in North Dakota if my business is registered in another state?
Yes, you can. The location of registration doesn’t matter, you can apply for an EIN through the IRS.
Is there a fee for obtaining an EIN in North Dakota?
No, applying for an EIN is free.
How long does it take to get an EIN in North Dakota after applying?
Usually the EIN is assigned immediately after applying online.
How can I apply for an EIN in North Dakota?
You can apply online, by mail, fax, or phone with the IRS.
Can I obtain an EIN on behalf of someone else for their North Dakota business?
As long as you can prove your authority as a legal representative or agent of the business, you can apply for an EIN on someone else’s behalf.
If I’m moving my North Dakota business to another state, do I have to apply for a new EIN?
No, your EIN remains the same regardless of where your business operates within the United States.
Can I change the business name associated with my North Dakota EIN?
Yes, but you need to notify the IRS and reapply with the new business name accordingly.
How long is my North Dakota EIN valid for?
An EIN is a permanent identification number for your business unless the status or entity changes.
Can I cancel my North Dakota EIN after obtaining it?
Yes, but you have to notify the IRS by contacting them directly.
What happens if I lose my EIN in North Dakota?
You can retrieve your EIN through various means with the IRS, such as contacting the Business & Specialty Tax Line at 1-800-829-4933.
Can I obtain multiple EINs for a single business in North Dakota?
No, businesses should only have one EIN no matter the number of locations or business entities.
Can I use my North Dakota EIN for more than one business?
EINs can only be used for one business entity.
How can I find out if my North Dakota EIN is still valid?
You can check your EIN validity by contacting the IRS directly and verifying your business information.
Is SSN valid in North Dakota if I own a single-member LLC?
Instead of using your Social Security Number, you need to obtain an EIN for your LLC as required by the IRS.
When should I apply for an EIN for my North Dakota business?
You should apply for an EIN as soon as possible after starting your business.
Can I change the information associated with my North Dakota EIN?
Certain types of changes – such as name or address changes – can be updated through the IRS directly.
What if I fail to get an EIN for my North Dakota business?
Businesses that fail to obtain an EIN may experience tax-related difficulties.
Is there a particular form to fill out when applying for an EIN in North Dakota?
Yes, businesses use form SS-4 to apply for an EIN.
Can I file taxes without an EIN for my North Dakota business?
You need an EIN to file taxes for your North Dakota business, so make sure you apply for one before tax season.
What do I need to apply for an EIN in North Dakota?
You need identifying information for your business, including your name and the business’s legal name.
Does North Dakota business get a separate state EIN?
No, North Dakota doesn’t issue a separate state EIN.
How secure is my North Dakota EIN?
Your EIN must not be shared or disclosed except as necessary in reporting taxes or establishing business credit accounts.
Can I start hiring employees once I receive my EIN in North Dakota?
Yes, you can start making hires immediately with your EIN from North Dakota.
What if my North Dakota EIN application is denied?
The IRS will provide an explanation regarding the denial and provide instructions on how to clear up any discrepancies.
Do I need an EIN for my North Dakota nonprofit?
Even nonprofits will need to acquire an EIN if they have employees.
How soon can I use my North Dakota EIN after obtaining it?
You should be able to use your EIN immediately as soon as it’s issued by the IRS.
Who needs to obtain an EIN in North Dakota?
Any business entity operating in North Dakota, including sole proprietors, partnerships, corporations, and LLCs, may need to obtain an EIN.
How do I apply for an EIN in North Dakota?
You can apply for an EIN online through the IRS website, by phone, by fax, or by mail.
How long does it take to get an EIN in North Dakota?
If you apply online, you can receive your EIN immediately. Otherwise, it may take up to four weeks to receive your EIN.
Can I apply for an EIN solely based on my North Dakota business mailing address, even if I’m located out of state?
Yes, you can apply for an EIN using your North Dakota mailing address regardless of where your physical location is.
What information is required when applying for an EIN in North Dakota?
You need to provide your legal business name, business address, and social security number or tax identification number.
Can I apply for a new EIN if I already have one for my North Dakota business?
No, you only need to apply for a new EIN if the legal structure of your business changes.
Can I get a North Dakota EIN if my business is not registered in North Dakota?
Yes, you can still obtain an EIN from the IRS, even if your business is not registered in North Dakota.
What should I do if I lose my North Dakota EIN?
You can contact the IRS to retrieve your EIN or locate it on any documentation you received from the IRS.
Can I cancel my North Dakota EIN?
No, you cannot cancel your EIN. However, if you no longer need it, you can inform the IRS and stop corresponding under that EIN.
Do I need to have a business license to apply for an EIN in North Dakota?
No, having a business license is not a requirement to apply for an EIN in North Dakota.
Does North Dakota have its own EIN number system?
No, North Dakota does not have its own EIN number system. All EINs are issued by the IRS.
What is the difference between an EIN and a North Dakota tax ID number?
An EIN is a federal tax identification number issued by the IRS, while a North Dakota tax ID number is issued by the North Dakota Tax Department for state tax purposes.
Are there any restrictions on who can apply for an EIN in North Dakota?
No, anyone with legal authority to act on behalf of the business can apply for an EIN in North Dakota.
If I incorporated in North Dakota a few years ago, but haven’t used the EIN since, do I need to get a new one?
No, you can continue to use the existing EIN for that corporation.
If I am a sole proprietor in North Dakota, can I use my social security number instead of an EIN?
Yes, you can use your social security number instead of an EIN for tax purposes.
Can I use my North Dakota EIN for multiple businesses?
No, you must have a separate EIN for each business you operate.
Can a non-US citizen obtain an EIN in North Dakota?
Yes, non-US citizens can obtain an EIN in North Dakota as long as they have an individual taxpayer identification number.
Can I change the name or address on my North Dakota EIN after it’s been issued?
Yes, you can change the name or address on your EIN by contacting the IRS.
What do I do if I change my business entity in North Dakota (such as from a sole proprietorship to an LLC)?
If you change your business entity, you will need to obtain a new EIN.
Can I get an EIN for my North Dakota business before it is officially registered?
No, you must have your business registered with the state before applying for an EIN.
Do I need an EIN if I have an existing North Dakota tax ID number?
Yes, an EIN is necessary for federal tax purposes, even if you have a North Dakota tax ID number.
Do I need an EIN to open a North Dakota bank account?
Yes, a North Dakota bank may require an EIN to open a business account.
What do I do if I receive an EIN in error from the IRS?
You should contact the IRS to inform them of the error and receive instructions on what to do next.
How do I notify the IRS if my North Dakota business has closed?
You should file a final tax return with the IRS and indicate that your business has closed.
Can I apply for an EIN over the phone in North Dakota?
Yes, you can apply for an EIN over the phone by calling 1-800-829-4933.
Do I need an EIN if I have employees in North Dakota?
Yes, you need an EIN if you have employees, even if your business is not incorporated.
Can I use a North Dakota EIN for a business that is based in another state?
Yes, you can use a North Dakota EIN for a business that is based in another state.
Do I need to renew my North Dakota EIN?
No, you do not need to renew your North Dakota EIN. It remains valid as long as your business exists and meets tax obligations.

Also Read

How to Save Money While Getting Ein for North Dakota LLC

One of the first steps to consider is handling the registration and filing process yourself instead of hiring a professional service. While the idea of DIY registration may seem overwhelming at first, it can be a cost-effective option for those looking to save money. There are plenty of online resources and guides available that can walk you through the steps necessary to register your LLC in North Dakota without the need for an expensive lawyer or professional service.

Another important way to save money when forming your North Dakota LLC is to carefully consider the business structure and name you choose. A unique business name may require additional fees or paperwork, so opting for a simple name that does not need any special approvals or filings can help save you time and money. Additionally, choosing the right business structure for your LLC, such as a single-member LLC or multi-member LLC, can impact the fees and requirements associated with forming your business.

When it comes to filing fees and other business expenses, it’s essential to research and compare different options before making any decisions. Shopping around for the best prices on required paperwork, filing fees, and other necessary items can help you save money in the long run. Additionally, taking advantage of any available discounts or promotions for forming an LLC in North Dakota can also help reduce your overall costs.

In addition to saving money on filing fees and paperwork, it’s also important to consider the ongoing costs associated with running a business in North Dakota. This includes things like business licenses, permits, and other regulatory requirements that may come with additional fees. Researching the specific requirements and costs associated with running a business in North Dakota can help you budget effectively and avoid any unexpected expenses down the road.

Finally, networking with other entrepreneurs and business owners in North Dakota can be a valuable resource for saving money and finding cost-effective solutions for your LLC. Building relationships with other like-minded individuals can lead to valuable partnerships, discounts, and resources that can help you save money and grow your business in the long term.

In conclusion, saving money while getting an LLC in North Dakota is certainly possible with some careful planning and research. By exploring cost-effective options for registration, choosing the right business structure, shopping around for the best prices, and networking with other entrepreneurs, you can successfully start your business without breaking the bank. By following these tips and strategies, you can set yourself up for success and ensure the future profitability of your North Dakota LLC.

Conclusion

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

Leave a Comment