The SS4 Form secures a crucial tax ID for operations like taxes, banking, hiring, and transactions, aiding IRS identification.
Filing it can be tricky if you don't understand the steps completely. After forming dozens of LLCs across the States together with my team of experienced attorneys, I can confidently say that there are no small steps.
Mastering filing Form SS-4 will be easy and smooth with this guide. We have not only explained it but also attached a close-up shot of an SS4 for better understanding.
Quick Summary
- To fill out Form SS-4 for an LLC you will need to provide the correct information about your business, including its legal name, mailing address, and type of entity.
- To get through it, it's mandatory to indicate the reason for applying.
- To complete the process, you need to send the completed form to the IRS via mail, fax, or online. Once you do this correctly, you should receive your Employer Identification Number (EIN) shortly afterward.
Fill out the SS4 Form for LLC
Form SS-4 requires 10 pieces of information:
When completing Form SS-4, you must furnish specific information, including ten different fields to check.
Line 1. The legal name of the entity (or individual) for whom the Employer Identification Number is being requested
Ensure that the name you've chosen for your business is correct and looks similar on this line as it does on your LLC Articles of Organization.
Line 2. Trade name of the business
Fill out the LLC business name or "doing business as" (DBA) name of the LLC if it operates under a different name.
Line 3. Executor, administrator, trustee, “care of” name
Put the full name of a person authorized to handle the company's legal issues (first, middle, and last) in this slot. If you use a third responsible party to manage the business affairs, that person's name should go here.
Lines 4a–b. Mailing address
Enter the business address to which mail will be delivered. This should generally be the same address as used for the company's tax returns.
Lines 5a–b. Street address
If the company has a physical address (not its mailing address) that differs from those in lines 4a–b, fill it in. If the business's physical and mailing addresses are identical, leave lines 5a–b blank.)
Line 6. County and state where the principal business is located
Fill in the business country and state.
Lines 7a–b. Name of the responsible party
Enter the business's responsible party's complete name (including the first name, middle initial, and last name) and SSN, ITIN, or EIN.
The IRS states that the responsible party is the individual who controls the entity.
The individual designated as the responsible party is the one who must sign Form SS-4 [1].
Lines 8a–c. Limited Liability Company (LLC) information
If your firm is an LLC, you must fill in these blanks with additional information about the company, such as the number of members.
Line 9a. Type of business entity
Fill out this form and check only the box that describes the sort of entity your company is.
If you're operating an LLC, be careful to check the correct box (for example, Sole Proprietorship, Partnership, S Corporation, or Personal Service Corporation).
Filling in this Form SS-4 does not constitute a tax classification election for your LLC.
Line 10. Reason for applying
What is the primary reason for you to apply for an EIN? Have you just started a new business, are you looking to hire people for the first time, did you buy an established firm or other reasons, etc.? Provide some explanation next to each checkbox.
When to File Form SS4?
Form SS4 can be filed throughout the year (not only at the end of the tax year) by taxpayers who need a TIN but are not yet employed or whose employment has ended. For example, employees hired late in 2022 will file Form SS-4 in 2023.
Companies hiring employees under these circumstances are required to file Form W-2c (Corrected Wage and Tax Statement) and to obtain a TIN for the individual from the IRS before paying wages/salary to that person [2].
Form W-2c should be filed with the Social Security Administration (SSA) as soon as possible, but no later than January 31st of the year following the calendar year in which wages were paid [3].
To comply with the SS4 requirement, the W-2c filing deadline should be met.
What is Form SS4?
Form SS4 is an application for the issuance of a taxpayer identification number (TIN) under the Individual Tax Identification Number (ITIN) Program.
The ITIN, which is also known as "ad hoc tax ID" or simply "Tax ID,” allows individuals to file income taxes without having a USA social security number or any other USA taxpayer ID.
Taxpayers with ITIN do not have to file a federal income tax return if the income they earn is below their thresholds for filing, but they can still file an Information Return (Form 1040NR) to claim a refund on withheld taxes [4].
Form SS4 is usually filed by foreign workers who are employed in the USA and earned wages over their thresholds for filing federal income taxes.
Also, non-resident aliens who received scholarships and grants that were not reported on the W-2 form or 1042-S scholarship can file SS4 to get a TIN to claim tax refunds [5].
Form SS4 is also filed by those people who are hired by US employers on a contract basis.
These people are paid for an assignment that is completed, not for hours worked on the job, and they may receive all or part of their pay while working abroad.
Read our article for more information on how to get a Tax ID number for an LLC.
What is an EIN?
An EIN is a nine-digit tax ID number that is given to businesses by the Internal Revenue Service (IRS) for LLC tax filing and reporting purposes.
You may need to provide your business with a federal tax identification number for various reasons, including legal requirements, establishing a line of credit at a bank, and opening an account at a financial institution.
All businesses are required to have one EIN in order to file taxes or open accounts at most banks and other financial institutions.
If you do not have an EIN, you can obtain one by filing IRS Form SS-4. The application has just 14 questions that are easy to follow along with, but it may take some time since the form is extensive in scope [6].
FAQs
Can I Use My Personal EIN for My Single Member LLC?
You can use your personal EIN for your single-member LLC.
However, using an SSN as a responsible party is not permitted, though you can obtain an EIN with an ITIN. If the owner is not identified as a U.S. citizen or resident, using an EIN assigned to a foreign corporation might be the only option.
Do Both Members of an LLC Need an EIN?
Both limited liability company members must have an EIN to comply with IRS regulations.
However, if a member has a sole proprietorship, they can use the SSN assigned to them for business and personal purposes as long as it is not used fraudulently.
What Is the Difference Between a Federal Tax Identification Number and a Social Security Number?
The main difference between a Federal Tax Identification Number and a Social Security Number is their purpose.
An EIN, obtained through Form SS-4, identifies a business for tax purposes, while a Social Security Number is used for personal tax identification.
What Is the Difference Between a Personal EIN and a Business EIN?
The main difference between a personal EIN and a business EIN is that a person can have only one Social Security Number (SSN) but multiple individual Employer Identification Numbers (EINs) for each business they own.
However, using an SSN as an EIN for a sole proprietorship can have implications if discovered later.
What Are the Benefits of Having an EIN?
Having an EIN provides benefits like serving as your company's tax identification number, enabling you to open a business bank account, obtain business credit cards, and file tax returns.
It also serves as proof of your company's good standing with the IRS.
How Do I Determine the Type of LLC for Tax Classification on the Form SS-4?
To determine the tax classification for your LLC on Form SS-4, specify if it's a single-member or multi-member LLC. This classification affects your LLC's taxation and ability to hire employees.
How to Fill out IRS Form SS4
An EIN is an IRS-issued identification number that all US employers are required to use when filing federal tax returns.
Applying for this type of identification can be completed by applying for the IRS Form SS 4 online and filling out the form provided through the site.
If you need further help on what tax forms your LLC needs to file, you can consult with a law firm or an experienced online legal service for more information on legal and tax advice.
References:
- https://www.irs.gov/forms-pubs/about-form-ss-4
- https://www.irs.gov/forms-pubs/about-form-w-2-c
- https://www.ssa.gov/
- https://www.irs.gov/forms-pubs/about-form-1040-nr
- https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin
- https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers
