Step 4: Obtain an Employer Identification Number (EIN)
Apply for an EIN from the IRS online. An EIN is necessary for tax purposes and to open a bank account for your LLC. The process is free and can be completed quickly.
LLC
3/20/20242 min read
An Employer Identification Number (EIN) is a unique nine-digit identifier issued by the IRS for tax purposes. Securing an EIN is a crucial step in establishing your real estate investing LLC, as it not only enables you to comply with tax obligations but also facilitates various business transactions, including opening a bank account. Here's how to apply for an EIN online:
1. Navigate to the IRS Website:
Visit the IRS website at www.irs.gov and locate the "Apply for an Employer Identification Number (EIN) Online" page. This online application process is free, convenient, and accessible 24/7.
2. Choose the Legal Structure:
Select the appropriate legal structure for your real estate LLC. In most cases, LLCs are treated as separate entities for tax purposes, even if they have a single member (referred to as a disregarded entity). Choose "Limited Liability Company (LLC)" from the options provided.
3. Complete the Online Application:
Follow the prompts to complete the online EIN application form. You'll be asked to provide information about your LLC, including its legal name, mailing address, principal business activity, and the name and address of a responsible party.
4. Verify Information:
Review the information you've entered carefully to ensure accuracy and completeness. Any errors or discrepancies could delay the processing of your EIN application.
5. Submit the Application:
Once you've verified the information, submit the online application. In most cases, you'll receive your EIN immediately upon completion of the application process.
6. Keep Record of Your EIN:
After obtaining your EIN, be sure to keep a record of it in a secure location. You'll need this number for various business purposes, including tax filings, opening a bank account, applying for business licenses, and completing other administrative tasks.
7. Notify Relevant Parties:
Inform your bank of your LLC's new EIN to facilitate the opening of a business bank account. Additionally, update any relevant business documents and contracts with the new EIN to ensure consistency and accuracy.
By applying for an EIN online, you can quickly and easily obtain the necessary tax identification number for your real estate investing LLC. This streamlined process enables you to focus on building and growing your business without unnecessary delays or complications.
*Bridge loan rates and terms are based on a combination of factors: LTV, FICO, and Experience and are subject to change.
†Residential and Commercial loan rates and terms are based on a combination of factors: LTV, FICO, and Experience and are subject to change. Non-Owner-Occupied investment properties only. See our Owner Occupied page for current States that we are licensed in.
Cash-out LTV based solely off of appraised value and in some instances cost basis.
Loans available Nationwide. Prepayment penalties as allowable by state.
Licensed by the Florida Office of Financial Regulation, Mortgage Loan Originator License LO86209, NMLS #1868116, California - CA-DFPI1868116, Colorado - 100535559, Georgia - 1868116, Texas, Virginia - MLO-63661VA.