How to Apply for an EIN in Alabama for an LLC

Sarah S Shepard - EIN IRS Application

Obtaining a Federal Employer Identification Number (“EIN” or “FEIN”) from the Internal Revenue Service is essential to running a business and setting up an Alabama limited liability company or nonprofit corporation in Huntsville, Alabama.

A FEIN is a nine-digit number that identifies your business to the IRS and other government agencies. EIN numbers act similar to social security numbers for individuals and are necessary for basic business functions like opening a business bank account, filing taxes, applying for business licenses, and other reporting requirements.

Simply put, a Huntsville business or non profit organization without an EIN will have trouble operating in Alabama or obtaining business licenses. Obtaining an EIN number is the first step to ensuring that your company will be successful. Read on to learn more.

How to Obtain an EIN Tax ID from the Internal Revenue Service.

The IRS provides several different ways to apply for and obtain a FEIN. The most common way to apply is online through the IRS website, although you can also get an EIN by phone or via mail if necessary. Here are some of the steps to consider.

Determining Eligibility. Federal law allows Alabama LLCs and tax-exempt nonprofits in Huntsville to apply for an EIN tax id directly from the Internal Revenue Service to conduct business.

There are some eligibility requirements for applying with IRS:

  • The LLC or non profit organization needs to have a principal place of business located within the United States;

  • The person applying for the EIN tax id must have a valid taxpayer identification number (such as a social security number or its own EIN); and

  • The responsible party, meaning to person or entity that controls the LLC or nonprofit corporation, may only apply for one EIN tax id per day.

After determining eligibility, applicants need to gather certain information about the LLC or nonprofit corporation. for your EIN tax Id

Here is a quick list of the information you will need to gather: Name of the company or organization; Location of the company or organization; Address of the business or group; Name and contact information for those individuals in charge of the LLC, corporation, or nonprofit corporation; and a description of the organization’s business purposes.

Impact of Applying for an EIN. 

Once a new Alabama LLC has applied for an Employer Identification Number, the IRS will now have an official record of the business in its internal databases and website. This will help the IRS identify new business filings and keep taxpayers better organized. It also allows a business to utilize federal agency resources, file business tax returns, and stay compliant on sales tax obligations, which is beneficial to both the government and businesses involved.

These tax id records are shared with the State of Alabama Department of Revenue for state income tax and sales tax compliance. The government may contact the Registered Agent at the mailing address on file with the Alabama Secretary of State about registration and licensing requirements. This is true even for nonprofit organizations with sales tax exemption because the corporation's registered office may need to provide additional documentation to receive tax exempt status at the Alabama state level.

This is why it is important for the Alabama Registered Agent to be ready to receive and respond to official notices from the State and Federal government and taxing authorities. All Alabama LLCs and nonprofits must have a registered agent. After all, the state and federal government can't deliver tax notices to entities that don’t have a physical address or staff.

How to Apply for an EIN for a Huntsville, Alabama Companies or Nonprofit Organizations.

When starting a new nonprofit or an Alabama LLC, the managers can apply for an Employer Identification Number either online or by mail.

The process takes under a half hour to complete start to finish. The applicant will need to know the following information:

  • The LLC’s legal name, trade name, address, and other contact information;

  • The LLC’s responsible party’s name, address, social security number, and other contact information;

  • The LLC’s legal entity information and date of formation in Alabama;

  • The expected number of Alabama employees for tax withholding; and

  • The name, trade name, address, and other contact information for any third-party designees, such as a Huntsville, Alabama business attorney responsible for discussing the application and process with IRS officials.

There is no official fee for filing an EIN tax id application through the mail. However, most businesses will prefer to use the online service because it takes less time and costs $0.

Getting an EIN tax ID for your Alabama LLC or nonprofit organization is the first step in establishing a presence with the IRS. While there are no fees associated with applying, getting started takes time and resources.

And if you’re not careful, it can lead to unnecessary fines from taxes and penalties that could put your business at risk. Let our team of experts handle all of this so you don’t have to worry about anything else but running your company!

We offer a wide variety of services designed specifically for new businesses including handling paperwork such as creating Articles of Incorporation, filing federal forms like SS-4 (EIN application), managing compliance issues such as sales tax exemption registration, and more.

Our goal is to help make your business work for you. We offer a free consultation and setup process to help you with any questions you may have.