A limited liability company, which is often referred to as an LLC, is a type of business entity in the United States. Companies that register as an LLC have some of the protections that a corporation does, but pass their taxation to the individual the same way a sole proprietorship or partnership does. An LLC must apply for an LLC tax ID number.
Each state sets its own rules for companies that wish to register as a limited liability corporation. Some of the things the state governs include:
- Naming requirements
- Cost of registering as an LLC
- Member requirements
A limited liability company may have several members, may be a single member, or may include other corporations, partnerships or LLCs. You must understand your state’s laws if you want to ensure you register your company properly.
Reasons to Obtain a Tax ID
There are several reasons that obtaining a federal employer identification number from IRS-EIN-Tax-ID. In addition to allowing you to open a bank account or credit card account in your company’s name, the ID allows you to hire employees, obtain the licenses you need to run your company, and protect your personal finances in the event that your business sees financial troubles.
How to Get Your Own Tax ID
Getting a tax identification number for your business is quite simple. You can even do it online when you do so through IRS EIN Tax ID Filing Service. Simply answer the questions about your business, provides the requested information about yourself and your company, and submit the application. In a matter of a few business days, you will receive your nine-digit federal employer identification number.