What is an EIN Number? 

An EIN (Employer Identification Number) is a unique nine-digit number issued by the Internal Revenue Service (IRS) to businesses such as a Minnesota LLC and other entities operating in the state of Minnesota or any other state.

An EIN is also known as:

• Federal Tax ID Number
• Employer Identification Number
• EIN Number
• Federal Employer Identification Number (FEIN)

What is an EIN Used For?

An EIN Number (Federal Tax ID Number) is used to identify businesses for tax purposes, similar to how a Social Security Number identifies individuals.

Here are a few situations that may require you to get an EIN for your Minnesota LLC:

1. Hiring Employees: If you plan to hire employees for your Minnesota LLC, you will need an EIN. This number is necessary for reporting taxes and other employment-related obligations.
2. Opening a Business Bank Account: Most banks require an EIN to open a business bank account. Having a separate bank account for your Minnesota LLC helps maintain clear financial records and separates your personal finances from your business finances.
3. Filing Taxes: An EIN is necessary for filing federal tax returns for your LLC. Even if your LLC is a single-member LLC, it will still require an EIN for tax purposes.
4. Applying for Business Permits and Licenses: Many local and state government agencies in Minnesota may require an EIN when applying for specific permits or licenses for your LLC.

When Should I Get an EIN?

After you have formed an LLC (Limited Liability Company), it is generally recommended to obtain an Employer Identification Number (EIN) as soon as possible.

How Much Does an EIN Cost?

Obtaining an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) is generally free of charge. The IRS does not charge a fee for issuing an EIN. You can apply for an EIN online through the IRS website or by mail, fax, or phone, and there is no cost associated with the application process.

EIN Services by Northwest 

Do Minnesota LLCs Need to Have an EIN?

In Minnesota, businesses, including sole proprietorships, partnerships, corporations, and limited liability companies (LLCs), are generally required to obtain an EIN if they have employees or meet certain other criteria, such as withholding taxes on income paid to a non-resident alien. The EIN Number helps the IRS track business activities and ensure compliance with tax laws.

To obtain an EIN Number in Minnesota, businesses can apply directly with the IRS by completing Form SS-4 (Application for Employer Identification Number). The application can be submitted online, by mail, or by fax.

Alternatively, businesses can authorize a third-party, such as an accountant, tax professional, or LLC service like Northwest Registered Agent to apply for an EIN on their behalf.

It is important for businesses in Minnesota to obtain an EIN Number to fulfill their tax obligations and ensure proper identification for their business entity.

Does a Single Member LLC in Minnesota Need to Get an EIN Number?

A single-member Minnesota LLC (Limited Liability Company) is generally not required to obtain an EIN (Employer Identification Number) if it has no employees and operates as a “disregarded entity” for tax purposes.

A single-member LLC will need an EIN if you plan to:

Open a Business Bank Account: Many financial institutions require an EIN to open a business bank account. An EIN acts as a unique identifier for the business when conducting financial transactions, including obtaining a business credit card or getting a business loan.

Having a business bank account helps prevent confusion between personal and business finances and ensures that financial records are appropriately attributed to the entity. Having a separate business bank account also simplifies accounting and facilitates the tracking of business income and expenses.

Single-member Minnesota LLC: Here are a few key points to consider

1. Default Tax Classification: By default, a single-member LLC in Minnesota is treated as a “disregarded entity” for federal tax purposes. This means that the IRS does not recognize the Minnesota  LLC as a separate entity, and the owner reports the business income and expenses on their personal tax return using their Social Security Number (SSN).
2. Use of SSN: The owner of a single-member LLC can use their SSN for tax and reporting purposes, similar to a sole proprietorship. The business income and expenses are reported on Schedule C (Profit or Loss from Business) of their personal tax return (Form 1040).
3. Exceptions and Changes: There are certain situations where a single-member LLC in Minnesota may need an EIN, such as if the LLC has employees, is required to file certain federal excise tax returns, or chooses to be taxed as a corporation. Additionally, if the single-member Minnesota LLC later adds additional members, it will be required to obtain an EIN.

From the IRS: https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies

Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner’s tax return (a “disregarded entity”).

An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms… Most new single-member LLCs classified as disregarded entities will need to obtain an EIN. An LLC applies for an EIN by filing Form SS-4, Application for Employer Identification Number

A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes. However, if a single-member LLC, whose taxable income and loss will be reported by the single member owner needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN.

How Do I Apply for an EIN Number for a Minnesota LLC?

Here is a step-by-step guide on how to apply for an EIN number:

1. Determine Eligibility: Before applying for an EIN number (federal tax ID number), make sure you are eligible. EINs are typically required for businesses, including sole proprietorships, partnerships, corporations, and LLCs. Certain entities, such as trusts, estates, and non-profit organizations, may also need an EIN.

2. Access the Online Application: The quickest and easiest way to apply for an EIN number is through the online application on the Internal Revenue Service (IRS) website. Go to the IRS website and search for “EIN application” or directly visit the “Apply for an Employer Identification Number (EIN)” page.

3. Choose the Appropriate Application Type: The online application will present different options for application types. Select the one that best suits your situation. Common options include “Sole Proprietor,” “Partnership,” “Corporation,” “LLC,” and “Non-Profit Organization.”

4. Provide Required Information: Fill out the online application form with accurate information. You will be asked to provide details about the business entity, such as the legal name, address, and type of organization.

Additionally, you’ll need to provide the name and Social Security number or Individual Taxpayer Identification Number (ITIN) of the responsible party, who is typically the owner or principal officer.

• IRS EIN Online Application: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
• Form SS-4 (Application for Employer Identification Number): https://www.irs.gov/pub/irs-pdf/fss4.pdf

5. Review and Submit the Application: Double-check all the information you have entered to ensure its accuracy. Once you are satisfied, submit the application electronically. The system will validate the information, and upon successful submission, you will receive your EIN immediately.

6. Print or Save the Confirmation: After receiving your EIN, it is advisable to print or save the confirmation notice for your records. This notice serves as proof of your EIN and can be used for various purposes, such as opening bank accounts or filing tax returns.

7. Understand Additional Requirements: Depending on the nature of your business and state regulations, there may be additional requirements to fulfill, such as obtaining state-level tax identification numbers. Research the specific requirements for your business to ensure compliance.

Federal Tax ID Number Confirmation Letter

Confirmation Letter: Once your EIN is assigned, the IRS will provide you with a confirmation letter. The confirmation letter serves as official documentation of your EIN and includes your entity’s name, address, and the assigned EIN. The letter typically arrives by mail and can take several weeks after receiving your EIN.

Remember to keep a copy of your EIN and confirmation letter in a safe place, as you may need it for various tax-related purposes, such as opening a business bank account or filing tax returns.

Note: If you prefer not to apply online, you can complete Form SS-4, the Application for Employer Identification Number, and submit it by mail or fax to the appropriate IRS office. The processing time for mail or fax applications is longer compared to the online application.

EIN Number vs. Social Security Number: Key Differences

An EIN Number (aka Federal Tax ID Number) and Social Security Number (SSN) are both identification numbers used in the United States, but they serve different purposes and are assigned to different entities. Here are the key differences between EIN Numbers and Social Security Numbers:

1. Purpose:
– EIN Number: An EIN is primarily used to identify businesses, nonprofit organizations, estates, trusts, and other entities for tax purposes. It is issued by the Internal Revenue Service (IRS) and is required for various business-related activities such as filing taxes, hiring employees, and opening business bank accounts.

– Social Security Number: A Social Security Number is a unique nine-digit number issued by the Social Security Administration (SSA) to individuals. It is primarily used for tracking an individual’s earnings and contributions to the Social Security system, determining eligibility for government benefits, and for identification purposes.

2. Entity Type:
– EIN Number: EINs are assigned to business entities, including sole proprietorships, partnerships, corporations, limited liability companies (LLCs), and nonprofit organizations. It is not assigned to individuals unless they are operating a business entity or have specific tax requirements.

– Social Security Number: Social Security Numbers are assigned to individual persons. They are used to track an individual’s employment history, eligibility for Social Security benefits, and for personal identification in various contexts.

3. Issuing Authority:
– EIN Number: EINs are issued by the IRS. Businesses and entities can apply for an EIN through the IRS either online, by mail, or by fax.

– Social Security Number: Social Security Numbers are issued by the Social Security Administration (SSA). They are typically assigned to individuals when they apply for a Social Security card through the SSA.

4. Usage:
– EIN Number: EINs are primarily used for business and tax-related purposes. They are used when filing business tax returns, paying employment taxes, opening business bank accounts, applying for business licenses, and conducting various business-related transactions.

– Social Security Number: Social Security Numbers are used for personal identification and tracking of an individual’s earnings and contributions to the Social Security system. They are required for employment purposes, filing personal tax returns, applying for government benefits, obtaining loans, and other personal financial transactions.

5. Confidentiality:
– EIN Number: EINs are generally considered public information. Once assigned, EINs can be searched and verified by the public through various sources, such as the IRS Business Entity Search tool.

– Social Security Number: Social Security Numbers are considered sensitive and confidential personal information. They should be protected and shared only when necessary for authorized purposes to prevent identity theft and fraud.

It’s important to understand the differences between EIN Numbers and Social Security Numbers to ensure their proper usage and protect personal and business information.

How to Change or Update an EIN Number for Your Minnesota Business

Changing or updating an EIN (Employer Identification Number) for your Minnesota business typically involves updating the business’s legal and tax information with the Internal Revenue Service (IRS). Here’s a brief overview of how to change or update an EIN number:

1. Understand the Need for Change:
Determine the reason for the change. Common reasons include changes in business structure (e.g., from a sole proprietorship to an LLC or corporation), changes in ownership, or errors in the initial EIN application.

2. Notify the IRS:
Contact the IRS Business and Specialty Tax Line at 1-800-829-4933 to inform them of the desired changes. Explain the reason for the change and provide any necessary documentation to support the request.

3. Obtain Necessary Forms:
Depending on the type of change, you may need to complete and submit specific IRS forms. For example:
– Change in business structure: File the appropriate form to reflect the new structure, such as Form 8832 (for LLCs) or Form 2553 (for S-corporations).
– Change in ownership: File Form 8822-B (Change of Address or Responsible Party – Business) to update the responsible party information.

4. Update Business Records:
Ensure that your business records, including licenses, permits, and financial accounts, are updated with the new EIN and any other relevant changes.

5. Notify Other Agencies and Entities:
Inform other relevant entities and agencies of the EIN change, such as state tax authorities, banking institutions, and business partners.

It’s crucial to consult the IRS and possibly seek professional advice to ensure compliance with the appropriate procedures and requirements for changing or updating an EIN.

Links for Changing or Updating Information:
1.
2. IRS Change of Address or Responsible Party – Business (Form 8822-B): https://www.irs.gov/forms-pubs/about-form-8822-b

References and Links from the IRS

Limited Liability Companies (LLCs)
Employer ID Numbers
Apply for an EIN Online
Single-Member Limited Liability Companies (LLCs)

Remember to consult a tax professional or visit the official IRS website for the most up-to-date and accurate information regarding the application process for an EIN number.

Navigating the legal and procedural landscape of launching a business can be complex,

but our FAQs are here to make it easier. From understanding registered agents to naming requirements, this guide offers concise, informative answers to your most pressing questions about starting an LLC in the Land of 10,000 Lakes.

Minnesota LLC FAQ

What are the Steps to Form an LLC in Minnesota?

To form an LLC in Minnesota, the first step is to choose an appropriate business name that meets state requirements. After that, you should appoint a Registered Agent, file Articles of Organization with the Minnesota Secretary of State, and create an Operating Agreement. You’ll also need an EIN for tax purposes. For step-by-step instructions, visit the Minnesota Secretary of State’s Business Services website.

What Are the Costs Involved in Forming an LLC in Minnesota?

The costs associated with forming an LLC in Minnesota include a filing fee for the Articles of Organization, which is $160 for online filings and $135 for in-person filings. Other potential costs include name reservation fees, Registered Agent fees, and legal fees if you choose to hire professionals. You can find more information on the Minnesota Secretary of State’s Fee Schedule page.

How Long Does It Take to Form an LLC in Minnesota?

The timeline for forming an LLC in Minnesota can vary depending on several factors such as processing speed and whether you opt for expedited service. Online filings are usually processed within 1-2 business days, while mail filings can take up to a week. Expedited services are available for an additional fee. Check the Minnesota Secretary of State’s website for current processing times.

What is an Operating Agreement and Do I Need One in Minnesota?

An Operating Agreement is a legal document that outlines the ownership structure, operational procedures, and financial arrangements of your LLC. While Minnesota law does not require LLCs to have an Operating Agreement, it is highly recommended as it offers legal protections and establishes clear guidelines for the business. You can learn more from Minnesota’s Small Business Assistance Office.

Do I Need to File an Annual Report for My Minnesota LLC?

Yes, Minnesota LLCs are required to file an Annual Renewal with the Minnesota Secretary of State. This is a simple process that confirms or updates your business information. Failure to file can result in administrative dissolution of the LLC. For more details, visit the Minnesota Secretary of State’s Annual Renewals page.

Minnesota Business Name Search

How Do I Conduct a Business Name Search in Minnesota?

To conduct a business name search for an LLC in Minnesota, you can use the Minnesota Secretary of State’s Business and Lien System. This online search tool allows you to verify the availability of your desired name and ensure that it is unique and does not infringe on other registered names. You can conduct the search by visiting Minnesota’s Business Search page.

Are There Any Requirements or Restrictions for Naming My Minnesota LLC?

Yes, there are specific requirements and restrictions for naming your LLC in Minnesota. Your LLC name must include the words “Limited Liability Company” or the abbreviation “LLC.” The name should also be distinct from any other registered Minnesota businesses. Prohibited terms include words that could confuse your LLC with a government agency, like “Federal” or “State.” For more details, check the Minnesota Secretary of State’s Business Name Requirements.

What if the Name I Want is Already Taken in Minnesota?

If the business name you want is already registered or reserved in Minnesota, you will need to choose a different name that is unique and meets the Minnesota naming requirements. You can also consider adding identifiers or altering the name to make it unique. Another option is to contact the existing business to inquire about their willingness to sell or transfer the name rights. For more on name conflicts, consult the Minnesota Secretary of State’s guidelines.

Minnesota Registered Agents

What is a Minnesota Registered Agent and Why Do I Need One?

A Minnesota Registered Agent serves as the official contact point between your LLC and the state government. The agent is responsible for receiving legal documents, such as lawsuits and state correspondence, on behalf of the LLC. Having a registered agent is a statutory requirement for operating an LLC in Minnesota. For more details, visit the Minnesota Secretary of State’s Registered Agent Requirements.

Can I Act as My Own Registered Agent in Minnesota?

Yes, you can act as your own registered agent in Minnesota, as long as you are a Minnesota resident and have a physical address in the state where you can receive legal documents during standard business hours. However, some business owners prefer to hire a professional registered agent service to ensure compliance and confidentiality. More information can be found at the Minnesota Secretary of State’s Registered Agent FAQs.

How Do I Change My Registered Agent in Minnesota?

To change your registered agent in Minnesota, you need to file a Change of Registered Office/Agent form with the Minnesota Secretary of State. There may be a filing fee associated with this change. You can file the change online, by mail, or in person. For step-by-step guidance, consult the Minnesota Secretary of State’s guide on Changing a Registered Agent.

Minnesota Secretary of State Business Search

A Minnesota Secretary of State business search can be done to find specific information on Minnesota business entities or to check if a name you are interested in using is available. When searching the Minnesota business database, you can search by name or file number.

When you search for entities, the information you will receive includes the filing history of the company, a Certificate of Good Standing and any other details that are publicly available.

Minnesota Business Entity Search

A business entity search can be done by anyone. This is something you might do if:

• Business owner, or aspiring business owner
• Customer
• An affiliate

All publicly available information is possible to find if you use the right search criteria. You can use the business search function to find Certificates of Good Standing and pay $15.00 for the Certificate.

Name Searching

1. Visit the Minnesota Secretary Of State’s website.
2. Select the “Business Name” tab on the search page.
3. Click “Search” and enter the name you wish to search. You will see a page with results matching your search criteria.
4. Click the Details link next to the result that interests you to learn more about the entity.

All details regarding the business that you are checking will be made available. This includes all information publicly available about the filing history of the business as well as details about the Certificate of Good Standing.

Search by File Number

If you’d prefer, you can search by file number. This is a more efficient search method.

1. Choose the File Number tab in the Search Business Filings section at the top of your search box.
2. Enter the file number, and click “Search.”
3. You’ll get one match result as long as the file number is entered correctly.

The detailed information for each business entity will be displayed to you. You will also have access to the filing history of the company and its Certificates of Good Standing.

Searching for a Business Name

Searching for a business name requires only a portion of the name. You can search only a portion of the entity name if there is no match for your business name. You can also use the options below the search bar to perform a more thorough search.

• Search Scope: You’ll only see results for companies whose names begin with the exact words that you have entered if you choose the “Begins With” tab. You’ll only get results for companies whose names match your entered words if you choose “Contains”.
• Filing Status: Search results will only show active company names if you select “Active”. Selecting “Inactive” will only show names that are currently inactive.
• Include Prior Names: This section shows only results for the most recent names. If you choose “Include”, the database will show results for all company names, regardless of whether they are active or prior.

Cost to File a New Nonprofit or Business in Minnesota

These are the costs to file a new nonprofit or business:

• Assumed Title – $50
• Business Corporation, Limited-Liability Company, Limited Liability Partnership(Domestic), Limited-Liability Partnership – $155
• Business Corporation, Cooperative (Foreign), $220
• Cooperative (Domestic), Cooperative Association $80
• Limited Liability Company (Foreign), – $205
• Limited Partnership, (Domestic), Limited Partner (Foreign), $120
• Name Reservation – $55
• Nonprofit Corporation (Domestic), $90
• Nonprofit Corporation (Foreign) – $70

More information will result in more accurate results. When searching for a business name to find out if it is available, be sure to follow the state’s guidelines when creating a business entity. Minnesota, like other states, has its own rules regarding company names.

You can’t check for availability of certain company names online, so it is best to call the office or visit them in person.

Minnesota Secretary of State

Mailing Address

Minnesota Secretary of State — Business Services
First National Bank Building
332 Minnesota St., Suite N201
Saint Paul, MN 55101

Hours: Monday-Friday, 8:00 a.m. to 4:00 p.m.

Phone: (651) 296-2803

Email: business.services@state.mn.us

Additional Steps

1. Trademark Search

When searching for a business name, it’s important to note that availability doesn’t necessarily mean the name is free to use if it’s already a registered trademark.

To avoid potential complications down the line, it’s wise to conduct a thorough trademark search using the Trademark Electronic Search System before finalizing a business name.

2. Choose a Registered Agent

After you have chosen an LLC name that is distinctive and unique, you can now choose your LLC’s Registered Agent.

3. Check if the Domain Name is Available

To check if a domain name is available, you can follow these steps:

1. Go to a domain registrar website, such as GoDaddy.com or Namecheap.com.
2. In the search bar on the homepage, type in the domain name you want to check.
3. Click on the search button to see if the domain name is available or not.
4. If the domain name is available, you will be prompted to purchase it. If it’s not available, the registrar will suggest some alternative options or you can try a different domain name.

4. Check if Social Media Name is Available

Check if a social media name is available for a new business name

5. Register Minnesota Business Entity

When you complete the required documents for filing a new business entity, you then register your business and business name with the state. The state of Minnesota will either approve your business name or reject it.

If you hire a good LLC service like Northwest Registered Agent, ZenBusiness or Bizee, these LLC services have business name tools available for you to do a quick search.

6. Register an Employer ID Number (EIN) With the IRS

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify businesses and other entities for tax purposes.

7. Create a Brand Logo

Creating a business logo involves several steps. There are affordable online services that can design a logo for you and assist with the process.

Define your brand: Before you start creating a logo, you need to define your brand’s personality, values, and mission. This will help you create a logo that accurately represents your brand.

8. Write a Business Plan

Writing a business plan involves a comprehensive process that covers various aspects of your business, including the industry, market research, marketing and sales strategies, financial projections, and more.

9. Open a Business Bank Account in Minnesota

A bank account is generally required for a new Limited Liability Company (LLC) or corporation to separate personal finances from business finances and to establish a clear record of business transactions.

To learn more about starting a business and proper filing procedures, as well as obtaining the right forms, you can visit the Secretary of States website.