How to Obtain an EIN in Pennsylvania | A Comprehensive Guide

Obtain an EIN in Pennsylvania

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

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

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How to Obtain an EIN in Pennsylvania

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

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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 Pennsylvania 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 Pennsylvania 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 Pennsylvania, your Registered Agent should file for the Certificate of Organization in Pennsylvania.

Uses of EIN in Pennsylvania

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

Filing State and Federal Taxes

Businesses in Pennsylvania 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 Pennsylvania Department of Revenue.

Payroll and Employee Tax Reporting

If your business has employees, you will need an EIN to report wages and other compensation paid to your workers. Additionally, an EIN is required for withholding and remitting federal income and payroll taxes on your employees’ behalf.

If you hire an employee for your business, you must request that your employees complete the following forms:

  • Employment Eligibility Form
  • Federal Tax Withholding Form
  • W-4 Form
  • Workers Compensation Claim Form
  • Disability Self-Identification Form
  • U.S. Citizenship and Immigration Services Form

Applying for Business Licenses and Permits

An EIN is often required when applying for business licenses and permits in Pennsylvania. 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 Pennsylvania, business license fee costs around the range of $50 – $300. You can check out Pennsylvania 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 Pennsylvania

As an EIN holder in Pennsylvania, 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 Pennsylvania.

To keep your business in good standing in Pennsylvania, you must file an Decennial Report with the Pennsylvania 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 Pennsylvania

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

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

FAQs

What is an EIN?
An Employer Identification Number is a unique identification number for businesses assigned by the IRS.
How do I obtain an EIN in Pennsylvania?
You can obtain an EIN in Pennsylvania by visiting the IRS website, applying by mail, fax, or phone, or through a third-party provider.
What is the IRS website for obtaining an EIN in Pennsylvania?
The IRS website for obtaining an EIN is www.irs.gov .
Can I apply for an EIN by mail in Pennsylvania?
Yes, you can apply for an EIN by mail in Pennsylvania.
Can I apply for an EIN by telephone in Pennsylvania?
Yes, you can apply for an EIN by telephone in Pennsylvania.
Is there a cost to obtain an EIN in Pennsylvania?
No, there is no cost to obtain an EIN in Pennsylvania.
How long does it take to get an EIN in Pennsylvania?
Usually, it takes around two weeks to get an EIN in Pennsylvania if you apply online.
Can I apply for an EIN in person in Pennsylvania?
No, you cannot apply for an EIN in person in Pennsylvania.
Who needs an EIN in Pennsylvania?
A business that has employees, a partnership, LLC, corporation, or other types of organizations may need an EIN in Pennsylvania.
Can I use someone else’s EIN for my business in Pennsylvania?
No, you cannot use someone else’s EIN for your business in Pennsylvania.
Do I need an EIN for my sole proprietorship in Pennsylvania?
It is not mandatory for sole proprietors to have an EIN in Pennsylvania, but they can obtain one if they wish.
How do I know if my Pennsylvania business needs an EIN?
The IRS provides a list of criteria that determine if a business needs an EIN in Pennsylvania.
What documents do I need to apply for an EIN in Pennsylvania?
Usually, you do not need any documents to apply for an EIN in Pennsylvania.
Can I obtain an EIN for a non-profit organization in Pennsylvania?
Yes, you can obtain an EIN for a non-profit organization in Pennsylvania.
Can I obtain an EIN for a trust in Pennsylvania?
Yes, you can obtain an EIN for a trust in Pennsylvania.
Can I obtain an EIN for a foreign business in Pennsylvania?
Yes, you can obtain an EIN for a foreign business in Pennsylvania.
Can I change my business name after getting an EIN in Pennsylvania?
Yes, you can change your business name by notifying the IRS in Pennsylvania.
What happens if I lose my EIN certificate in Pennsylvania?
You can request another EIN certificate by contacting the IRS by mail or phone in Pennsylvania.
How do I know if my EIN is still active in Pennsylvania?
You can check if your EIN is still active by contacting the IRS in Pennsylvania.
Can I cancel my EIN in Pennsylvania?
Yes, you can cancel your EIN by writing to the IRS in Pennsylvania.
Can I use an expired EIN in Pennsylvania?
No, you cannot use an expired EIN in Pennsylvania.
What is the maximum number of EINs I can have in Pennsylvania?
There is no maximum number of EINs you can have in Pennsylvania.
How do I update my business information with the IRS in Pennsylvania?
You can update your business information with the IRS in Pennsylvania by filing Form 8822-B.
Do I need to renew my EIN in Pennsylvania?
No, you do not need to renew your EIN in Pennsylvania.
Can I change my business type with the same EIN in Pennsylvania?
Yes, you can change your business type with the same EIN in Pennsylvania.
Is an EIN the same as a tax ID number in Pennsylvania?
Yes, EIN is the same as a tax ID number in Pennsylvania.
Can I apply for an EIN on behalf of another Pennsylvania entity?
Yes, you can apply for an EIN on behalf of another Pennsylvania entity.
Can a non-US resident obtain an EIN in Pennsylvania?
Yes, a non-US resident can obtain an EIN in Pennsylvania.
Are there any penalties for not having an EIN in Pennsylvania?
Yes, there are penalties for not having an EIN in Pennsylvania.
If I have a sole proprietorship, do I need to obtain an EIN?
It depends on whether you have employees or not. If you don’t have employees, you can use your Social Security Number instead of an EIN.
How do I apply for an EIN in Pennsylvania?
You can apply for an EIN for free online on the IRS website or by fax, mail, or phone.
Can I apply for an EIN for my Pennsylvania business online?
Yes, as long as you have a valid Social Security Number and your business is located in Pennsylvania.
How much does it cost to get an EIN in Pennsylvania?
It’s free to apply for an EIN.
Can I apply for an EIN for a Pennsylvania nonprofit?
Yes, nonprofits are eligible to apply for an EIN.
What information do I need to apply for an EIN in Pennsylvania?
You’ll need to provide your business name, address, and Social Security Number or Employer Identification Number (if you already have one).
Can I apply for an EIN over the phone?
Yes, you can apply for an EIN over the phone by calling the IRS Business & Specialty Tax Line.
Can I get an EIN for my Pennsylvania LLC?
Yes, LLCs are required to have an EIN for tax purposes.
What is the purpose of an EIN?
An EIN is used to identify your business for tax filing purposes.
How important is it to have an EIN for my Pennsylvania business?
It’s important to have an EIN if you have employees or if you’re operating as a partnership or corporation.
Do I need an EIN to open a business bank account in Pennsylvania?
Yes, most banks require a valid EIN to open a business bank account.
Can I use the same EIN for multiple businesses in Pennsylvania?
No, each business must have its own unique EIN.
Do I need to renew or update my EIN periodically?
No, your EIN is a permanent number that doesn’t expire.
What should I do if I lose my EIN?
Contact the IRS Business & Specialty Tax Line to retrieve your EIN.
Can I cancel my EIN if I close my Pennsylvania business?
Yes, you should contact the IRS Business & Specialty Tax Line to cancel your EIN if you’re no longer in business.
Can I change my business name or address with my EIN in Pennsylvania?
Yes, you can update your business information with the IRS by filing Form 8822-B.
What is the IRS Business & Specialty Tax Line and how can I contact them in Pennsylvania?
The IRS Business & Specialty Tax Line is a helpline for businesses to ask questions about tax-related issues. You can contact them by phone at 1-800-829-4933.
How can I get a copy of my EIN confirmation letter?
You can request a copy of your confirmation letter by contacting the IRS Business & Specialty Tax Line.
Can I apply for an EIN for my Pennsylvania business if I’m not a US citizen?
Yes, non-US citizens can apply for an EIN as long as they have a valid tax identification number.
What is a Pennsylvania sales tax license number and do I need one to get an EIN?
A Pennsylvania sales tax license number is required for most businesses that sell goods or services in the state. You don’t need a sales tax license number to obtain an EIN, but you may need it for other tax-related purposes.
Can I apply for an EIN for my Pennsylvania business if I don’t have a physical location yet?
Yes, you can apply for an EIN as soon as you’ve chosen a business name and registered with the Pennsylvania Department of State.
What type of legal entity do I need to have to get an EIN?
Any legal business entity that provides goods or services and has employees will need an EIN.
Can I get an EIN for my Pennsylvania business before I register with the state?
No, you must register your business with the state before you can obtain an EIN.
Do I need an EIN if I’m a freelancer or independent contractor in Pennsylvania?
It depends on how you structure your business. If you’re a sole proprietor without employees, you don’t need an EIN.
Can I change the ownership structure of my Pennsylvania business without getting a new EIN?
It depends on the type of change. Generally, changes like changing your business name or legal structure will require a new EIN.
Can I apply for an EIN in Pennsylvania if my business is located in another state?
Yes, you can apply for an EIN for your Pennsylvania business regardless of where it’s physically located.
What is a Pennsylvania Department of Revenue Tax ID and do I need one separate from my EIN?
A Pennsylvania Department of Revenue Tax ID is used for tax payment purposes. You’ll need to obtain a separate tax ID from the Department of Revenue after you receive your EIN.
Can I get an EIN for a Pennsylvania foreign entity?
Yes, foreign entities that do business in Pennsylvania can apply for an EIN.

Also Read

How to Save Money While Getting Ein for Pennsylvania LLC

When forming an LLC in Pennsylvania, there are several expenses to consider. Fees for filing paperwork with the state, obtaining an Employer Identification Number (EIN) from the IRS, and other related costs can quickly add up. However, there are ways to save money while still getting an EIN for your Pennsylvania LLC.

One of the easiest ways to save money when getting an EIN for your Pennsylvania LLC is to apply for it yourself for free on the IRS website. Many online services offer to obtain an EIN for a fee, but you can easily complete the process on your own at no cost. This can save you upwards of $100 or more, depending on the service you use.

Another way to save money when getting an EIN for your Pennsylvania LLC is to wait until you actually need one. While it may seem like a good idea to get an EIN as soon as you form your LLC, if you don’t anticipate hiring employees or opening a bank account right away, you can hold off on obtaining an EIN until it is necessary. This can save you time and money in the long run.

Additionally, it is essential to shop around when it comes to hiring professionals to help with forming your LLC and obtaining an EIN. While it may be tempting to hire the first lawyer or accountant you come across, getting quotes from multiple providers can help you find the best deal. You may also consider using online resources or templates to help you save money on legal fees.

When it comes to ongoing costs associated with maintaining your Pennsylvania LLC, such as annual fees and taxes, it is vital to stay organized and keep track of important deadlines. Missing a filing deadline or payment can result in penalties and extra expenses, so creating a calendar or reminder system can help you avoid these costly mistakes.

Overall, saving money while getting an EIN for your Pennsylvania LLC is possible with a little research and effort. By applying for an EIN yourself, waiting until it is necessary, and shopping around for professional services, you can keep costs low and focus on growing your business. Remember to stay organized and on top of important deadlines to avoid unnecessary fees and penalties. With these tips in mind, you can set your Pennsylvania LLC up for success without breaking the bank.

Conclusion

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

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