How to Obtain an EIN in Ohio | A Comprehensive Guide

Obtain an EIN in Ohio

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

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

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

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

Uses of EIN in Ohio

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

Filing State and Federal Taxes

Businesses in Ohio 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 Ohio Department of Taxation.

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

As an EIN holder in Ohio, 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 Ohio.

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

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

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

FAQs

What is an EIN?
An Employer Identification Number (EIN) is a unique identifier assigned by the IRS for businesses to use on their tax returns and in other transactions.
Do I need an EIN to start a business in Ohio?
You need an EIN if you plan to hire employees or file federal taxes for your Ohio-based business.
How do I obtain an EIN for an Ohio-based business?
You can apply online, by fax, by mail, or by phone with the IRS.
What is the preferred method to apply for an EIN in Ohio?
The preferred method for obtaining an EIN in Ohio is online through the IRS website.
What information do I need to provide to obtain an EIN in Ohio?
You will need to provide basic information about your business, such as its legal name and structure, as well as your name and contact information.
Can I apply for an EIN for my Ohio business if I am not a US citizen?
Yes, non-US citizens can obtain an EIN as long as they have a valid US tax ID.
Does obtaining an EIN obligate me to pay Ohio taxes?
Obtaining an EIN does not automatically obligate you to pay Ohio taxes, but it does make it possible for the Ohio Department of Taxation to identify and process your taxes.
Can I use my Ohio EIN for multiple businesses?
No, each business needs its own unique Ohio EIN.
Is there a cost to apply for an EIN in Ohio?
There is no cost to applying for an EIN.
How long does it take to obtain an EIN in Ohio?
The process typically takes about 15 minutes through the online application, but processing times vary for other methods.
When should I apply for an EIN for my Ohio business?
You should apply for an EIN as soon as you plan to hire employees or file federal taxes for your Ohio-based business.
Can I change the information on my Ohio EIN once it’s assigned?
Yes, you can change your business name, mailing address, and other details associated with the EIN.
Can I cancel an Ohio EIN if I no longer need it?
Yes, there is a process for canceling an EIN if it is no longer needed.
How long does an Ohio EIN remain valid?
An Ohio EIN remains valid as long as you continue to use it for your business.
What happens if I lose my Ohio EIN?
You can call the IRS Business & Specialty Tax Line to recover a lost or forgotten EIN.
Can I apply for an Ohio EIN if my business is located outside of Ohio but still operates in Ohio?
Yes, all businesses that operate in Ohio need an Ohio EIN.
Do I need to provide a Social Security Number to obtain an Ohio EIN?
You can use your Social Security Number or an Individual Taxpayer Identification Number in the EIN application process.
Will my Ohio EIN be the same as my Ohio tax ID number?
No, these are two separate identifiers.
Is there a deadline for applying for an Ohio EIN?
No, there is no deadline for obtaining an Ohio EIN but it should be obtained as soon as possible.
Does obtaining an Ohio EIN change my business structure or legal status?
Obtaining an Ohio EIN does not change your business structure or legal status.
Can I apply for an Ohio EIN for a non-profit organization?
Yes, non-profits can obtain an Ohio EIN.
Can I review the status of my Ohio EIN application?
Yes, you can check the status of your online EIN application through the IRS website.
How do I estimate my Ohio business’ income for tax purposes?
You should review your business income for past periods and estimate future income based on factors like revenue growth.
Are there penalties for using my Ohio EIN inappropriately?
Yes, penalties can be assessed for fraudulent or inappropriate use of an Ohio EIN.
How do I know if my business needs an Ohio EIN?
You should consult with an accountant or tax professional to determine your Ohio business’ EIN requirements.
Does my aging-care company need an Ohio EIN?
If you plan to hire employees or file federal taxes for your aging-care company operating in Ohio, you need an Ohio EIN.
Can I change my Ohio EIN number?
No, you cannot change your Ohio EIN. If it is necessary, you can cancel the first one and obtain a new EIN.
Is there a fee for modifying the details of my Ohio EIN?
No, there is no fee for modifying EIN details.
Can I use the same Ohio EIN for a sole proprietorship and the LLC I plan to create later on?
No, you need a new EIN once your LLC is created.
What is an EIN in Ohio?
An EIN is a unique identification number assigned by the IRS to identify a business entity on federal tax filings.
Who needs to obtain an EIN in Ohio?
Most businesses and other entities, such as nonprofit organizations and trusts, are required to obtain an EIN.
What is the purpose of obtaining an EIN in Ohio?
Obtaining an EIN is necessary for various reasons, such as opening a bank account, hiring employees, or filing taxes.
How can I apply for an EIN in Ohio?
You can apply for an EIN in Ohio by completing the Form SS-4 either online, by mail, fax or phone.
Is there a fee to apply for an EIN in Ohio?
No, the application for an EIN is free of charge.
Can I use my personal Social Security number instead of obtaining an EIN in Ohio?
It is generally not recommended to use your personal Social Security Number for business activities. Obtaining an EIN is free, easy, and can help you protect your personal information.
Can I apply for an EIN in Ohio if I am not a US citizen?
Yes, non-US citizens can apply for an EIN in Ohio as long as they have a valid tax identification number such as the Individual Taxpayer Identification Number (ITIN), which can be obtained from the IRS.
Can I apply for an EIN in Ohio if I am a sole proprietor?
Yes, sole proprietors can and should obtain an EIN. Although not always required, having an EIN can help your business build credibility and protect your personal information.
Can more than one business have the same EIN number in Ohio?
No, each business is only issued one unique EIN.
Is an EIN transferable from one business to another in Ohio?
No, an EIN is assigned to only one business entity and cannot be transferred to another.
Do I need an Ohio state tax ID number if I have an EIN?
Some businesses in Ohio may be required to obtain both an EIN and a state tax ID number. Check with the Ohio Department of Taxation to learn your specific requirements.
Should I get an EIN as a freelancer in Ohio?
If you are a freelancer and operate as a sole proprietor without any employees, you may not be required to obtain an EIN. However, it is recommended to obtain one to protect your personal information and build credibility.
What do I need to apply for an EIN in Ohio?
You’ll need your business name and address, the type of business entity, the reason why you’re applying for the EIN, and the responsible party’s name, address, and Social Security number or individual taxpayer identification number (ITIN).
Can an EIN expire in Ohio?
No, an EIN assigned to a business entity in Ohio does not expire.
Can I change my business entity’s legal name after obtaining an EIN in Ohio?
Yes. You may change your business’s legal name, just make sure to update the information with the IRS as soon as possible.
What is a responsible party in Ohio that is listed on an EIN application?
The responsible party is the person who controls or manages the business entity for tax purposes. The responsible party must apply for the EIN, but it doesn’t have to be the owner.
Can I obtain multiple EINs for separate business entities in Ohio?
Yes, you can apply for multiple EINs if you run multiple business entities in Ohio.
Are there any restrictions on how I can use my EIN in Ohio?
Yes, your EIN should only be used for legal and legitimate business activities. Do not use your EIN for personal reasons or to commit fraud.
How do I update my EIN information in Ohio?
You can update your EIN information by sending Form 8822-B to the IRS.
Why was my EIN application for Ohio rejected?
There are several reasons why an EIN application might be rejected, including if the form was not completed correctly, the responsible party was not authorized to apply, or the business entity may already have an EIN.
How often do I need to renew or update my EIN in Ohio?
You do not have to renew or update your EIN in Ohio. However, it is crucial to keep your business and tax information up-to-date for legal and operational reasons.
Can I apply for an EIN for an LLC in Ohio?
Yes, you can apply for an EIN for an LLC in Ohio.
Is an EIN required when starting a nonprofit organization in Ohio?
Yes, a nonprofit organization in Ohio is required to obtain an EIN before it can open a bank account, apply for tax exemptions, or conduct various other activities.
What should I do if I lose my EIN in Ohio?
If you lose your EIN in Ohio, you can call the IRS and ask them to provide it. Alternatively, you can contact your tax preparer or accountant.
Can I apply for an EIN on behalf of another business entity in Ohio?
No, only the responsible party who controls the business entity can apply for an EIN.
Can I transfer an EIN from one state to another in Ohio?
No, an EIN does not transfer between states. If you move your business to Ohio from another state, you will need to apply for a new EIN.
How can I check to see if my EIN in Ohio is valid?
You can confirm the validity of your EIN in Ohio by contacting the IRS at 1-800-829-4933.
What are the consequences of providing incorrect information on an EIN application in Ohio?
Providing inaccurate or false information on your EIN application in Ohio, may lead to penalties such as delays in receiving your EIN or worse, misdemeanors for committing fraud.
What should I do if I have questions about obtaining an EIN in Ohio?
If you have any other questions or concerns regarding obtaining an EIN in Ohio, see the IRS website or consult a tax professional or trusted accountant.

Also Read

How to Save Money While Getting Ein for Ohio LLC

One cost-saving measure is to handle the paperwork yourself rather than hiring a lawyer or a third-party service. While it may seem daunting at first, Ohio makes it relatively easy to form an LLC on your own. By following the step-by-step instructions provided by the Ohio Secretary of State’s office, you can save hundreds of dollars in legal fees. Plus, taking the time to understand the process can give you a better grasp of the legal requirements for running your business.

Another way to save money on forming an Ohio LLC is to carefully consider the add-ons and upgrades that some filing services offer. While it may be tempting to pay for expedited processing or additional services, these are often unnecessary expenses that can add up quickly. By sticking to the basic filing package, you can save a significant amount without compromising the quality of your LLC formation.

When it comes to choosing a registered agent for your Ohio LLC, opt for a more affordable option rather than automatically selecting the first one you come across. Registered agent services can vary widely in price, so it’s worth taking the time to compare different providers and find one that fits your budget. Keep in mind that the primary role of a registered agent is to receive legal documents on behalf of your business, so there’s no need to pay top dollar for this service.

In addition to saving money on the initial formation of your Ohio LLC, there are ongoing expenses to consider as well. For example, annual renewal fees are required to keep your LLC in good standing with the state. Make sure to mark your calendar and set aside funds for this expense each year to avoid any surprises. Additionally, consider sharing office space or resources with other small businesses to lower overhead costs associated with running your LLC.

Lastly, take advantage of free or low-cost resources available to Ohio entrepreneurs. The Secretary of State’s office offers many online resources and guides to help you navigate the process of forming and maintaining your LLC. Local Small Business Development Centers and chambers of commerce also provide valuable information and support to help you save money and succeed in your business venture.

By being proactive and strategic in your approach to forming and managing your Ohio LLC, you can save a significant amount of money without sacrificing the legal protections and benefits that come with this business structure. With a little research and careful consideration of your options, you can set up your LLC on a budget and focus on growing your business without breaking the bank.

Conclusion

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

Leave a Comment