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

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Obtain an EIN in South Dakota

In starting an LLC in South 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 South 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 South 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 South 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 South 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

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How to Obtain an EIN in South Dakota

Obtaining an EIN in South 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 South Dakota, 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 South 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 South 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 South Dakota, your Registered Agent should file for the Articles of Organization in South Dakota.

Uses of EIN in South Dakota

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

Filing State and Federal Taxes

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

As an EIN holder in South 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 South Dakota.

To keep your business in good standing in South Dakota, you must file an Annual Report with the South 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 South Dakota

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

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

FAQs

How do I obtain an EIN in South Dakota?
You can apply for an EIN in South Dakota through the IRS website or by mailing in Form SS-4.
Can I obtain an EIN for my business through a third party service in South Dakota?
Yes, there are companies that offer EIN application services for a fee in South Dakota.
What is the cost to obtain an EIN in South Dakota?
There is no cost to apply for an EIN in South Dakota.
Do I need an EIN to start a business in South Dakota?
It is not required to have an EIN to start a business in South Dakota, but it is highly recommended.
How long does it take to obtain an EIN in South Dakota?
You can obtain an EIN online instantly or within a few business days if applying through mail in South Dakota.
Do I need an EIN if I am a sole proprietor in South Dakota?
Sole proprietorships in South Dakota are not required to have an EIN, but may choose to get one for various reasons.
Can I obtain an EIN for my non-profit organization in South Dakota?
Yes, non-profit organizations in South Dakota are eligible for EINs.
How do I update my EIN information for my business in South Dakota?
You can update your EIN information online or by mailing in Form SS-4.
What if I lose my EIN in South Dakota?
Contact the IRS or search for misplaced EIN confirmation documents in South Dakota.
Can I use my personal social security number for my business in South Dakota?
It is not recommended to use your personal social security number for business purposes in South Dakota.
How often do I need to renew my EIN in South Dakota?
EINs do not expire, so renewal is not necessary in South Dakota.
Can I cancel my EIN in South Dakota?
Yes, you can cancel your EIN by sending a written statement to the IRS by mail in South Dakota.
Is there a specific time of year to apply for an EIN in South Dakota?
You can apply for an EIN anytime throughout the year in South Dakota.
Do I need an attorney to help me get an EIN in South Dakota?
No, you do not need an attorney to obtain an EIN in South Dakota.
Can I apply for an EIN for my partnership in South Dakota?
Yes, you can apply for an EIN for your partnership in South Dakota.
Do I need an EIN if I am a single-member LLC in South Dakota?
Single-member LLCs are not required to have an EIN in South Dakota, but may choose to get one for various reasons.
Can I change my EIN number in South Dakota?
No, you cannot change your EIN number in South Dakota.
Do I need an EIN for my trust in South Dakota?
Yes, if your trust is required to file a tax return in South Dakota then you need an EIN.
How can I verify an EIN in South Dakota?
You can verify an EIN in South Dakota by entering it into the IRS EIN Assistant tool.
How do I get a copy of my EIN confirmation letter in South Dakota?
You can request a copy of your EIN confirmation letter from the IRS by mail or fax in South Dakota.
Can I use my EIN for multiple businesses in South Dakota?
Yes, you can use your South Dakota-issued EIN for multiple businesses.
What if I need to change my business address for my EIN in South Dakota?
You can update your business address on your EIN by mail or online through the IRS website.
Do I need an EIN for my estate in South Dakota?
Only an estate that has filed a tax return with the IRS needs an EIN in South Dakota.
Can I apply for an EIN for my church in South Dakota?
Yes, churches in South Dakota are eligible for EINs.
Do I need to have a registered agent to apply for an EIN for my LLC in South Dakota?
South Dakota requires that LLCs have a registered agent, but that is not a requirement to obtain an EIN.
Can I apply for an EIN via phone or fax in South Dakota?
No, paper/mail or online are the only available methods to obtain an IRS EIN.
What kind of entity types can apply for an EIN in South Dakota?
All entity types recognized by the IRS, including corporations, LLCs, and trusts, can apply for an EIN in South Dakota.
What happens if I make a mistake on my EIN application in South Dakota?
You can make corrections to EIN applications by contacting the IRS or through EIN online mail in South Dakota under certain circumstances.
Is my EIN confidential in South Dakota?
EINs are confidential pieces of information under regulation, so people cannot find your EIN online in South Dakota.
What is an EIN and why do I need it in South Dakota?
An EIN is a unique identification number issued by the IRS to businesses for tax purposes. If you operate a business in South Dakota, an EIN is required to identify your business for state tax purposes.
How can I apply for an EIN in South Dakota?
You can apply for an EIN online, by mail, fax, or telephone.
What is the quickest way to get an EIN in South Dakota?
The quickest way to obtain an EIN in South Dakota is to apply online on the IRS website.
Can I use my social security number instead of an EIN in South Dakota?
Generally, if you operate a business in South Dakota, you need an EIN, not a social security number.
How long does it take to get an EIN through mail in South Dakota?
If you apply for an EIN through mail in South Dakota, it can take up to four weeks for the IRS to process your application.
Are there any fees to get an EIN in South Dakota?
There are no fees to get an EIN in South Dakota.
Can a non-US resident get an EIN in South Dakota?
Yes, as long as the non-resident has a valid tax identification number issued by the government.
Is an EIN needed for a sole proprietorship in South Dakota?
Yes, if you operate a sole proprietorship in South Dakota, you will need an EIN if you have employees or if you file specific business taxes.
Can I apply for an EIN for my LLC with a DBA in South Dakota?
Yes, you can apply for an EIN for your LLC with a DBA in South Dakota.
How can I use my EIN number in South Dakota?
You will use your EIN number to identify your business for tax purposes in South Dakota.
Can I change the EIN for my business in South Dakota?
Yes, you can change the EIN for your business in South Dakota with certain conditions.
Is it possible to use the EIN after closing of business in South Dakota?
No, you cannot use the EIN for any other business purposes once you have closed your business in South Dakota.
What happens if I forget the EIN of my business in South Dakota?
If you forget your business’s EIN, you can call the IRS Taxpayer Assistance Line to retrieve it.
Do I need an attorney to get an EIN in South Dakota?
No, you do not need an attorney to get an EIN in South Dakota.
How can I check if my EIN is still active in South Dakota?
You can call the IRS to check the status of your EIN in South Dakota.
I have an EIN already, but I have lost my confirmation letter, what should I do in South Dakota?
You can call the IRS to request a copy of your confirmation letter if you have lost it.
Am I obliged to have an EIN in South Dakota to run an exempt non-profit organization?
Yes, an exempt non-profit organization in South Dakota must have an EIN to report its financial transactions to the IRS.
Does it cost money to get an EIN for a church in South Dakota?
No, it does not cost any money to get an EIN for a church in South Dakota.
Can I apply for an EIN over the phone in South Dakota?
Yes, you can apply for an EIN over the phone by using the IRS toll-free telephone service.
Is an EIN the same thing as a business license in South Dakota?
No, an EIN is not the same thing as a business license in South Dakota.
Can I apply for an EIN during weekends in South Dakota?
No, the IRS business hours for taking EIN applications over the phone are Monday to Friday from 7:00 a.m. to 7:00 p.m. EST.
Does a single-member LLC need an EIN in South Dakota?
If the LLC has employees or is required to file certain federal tax returns, it will require an EIN in South Dakota.
Do I need an EIN as a freelancer in South Dakota?
Usually freelancers do not require an EIN unless they have employees or need to file specific federal tax returns.
Is a South Dakota driver’s license required to obtain an EIN in South Dakota?
A South Dakota driver’s license is not required to obtain an EIN in South Dakota.
Can I apply for an EIN without a company name in South Dakota?
No, you cannot apply for an EIN without a business name in South Dakota.
Is an EIN required for a sole proprietorship with no employees in South Dakota?
A sole proprietorship with no employees may not need an EIN in South Dakota as it could use the proprietor’s social security number for certain tax purposes.
Is it okay to correct an error in my tax return using my EIN in South Dakota?
Yes, if you have made an error in your tax return, you can use your EIN to amend it in South Dakota.
Do I have to renew my EIN in South Dakota?
No, EIN’s do not expire.

Also Read

How to Save Money While Getting Ein for South Dakota LLC

In South Dakota, getting an EIN (Employer Identification Number) for your LLC is a crucial step in the process of getting your business up and running. An EIN is essentially a social security number for your business, allowing you to open a business bank account, hire employees, and file taxes. While obtaining an EIN for your South Dakota LLC is necessary, it doesn’t have to break the bank. With careful planning and some strategic decisions, you can save money while still ensuring your business is properly registered and compliant.

One way to save money when getting an EIN for your South Dakota LLC is to apply for it yourself online for free. The process is relatively simple and straightforward, and can be done directly through the IRS website. By taking the DIY approach, you avoid having to pay any fees to a third-party service that assists with the EIN application process. Additionally, you can save time by receiving your EIN immediately upon completion of the online application, rather than waiting for a third party to process your request.

Another cost-effective option for obtaining an EIN for your South Dakota LLC is to do so through the mail. While this method may take longer than applying online, it is still a viable option for those looking to save money. By filling out Form SS-4 and mailing it to the IRS, you can get your EIN without having to pay for any additional services or assistance. Just be sure to follow the instructions carefully and allow for extra time for processing.

If you prefer to have assistance when applying for an EIN for your South Dakota LLC, there are low-cost online services available that can help you through the process. These services typically charge a nominal fee to help streamline the application process and ensure that everything is filled out correctly. While you may have to pay a small amount for this convenience, it can still be a cost-effective option for those who want some extra assistance without breaking the bank.

In conclusion, getting an EIN for your South Dakota LLC is a necessary step in establishing your business and ensuring that you are compliant with state and federal regulations. By exploring the various options available and making informed decisions, you can save money while still getting the EIN you need to move forward with your business endeavors. Whether you choose to apply online, through the mail, or with the help of a low-cost service, there are ways to cut costs and still get the job done. With some careful planning and a bit of research, you can get your EIN without breaking the bank.

Conclusion

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

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