Starting a business in Wyoming is an exciting step towards entrepreneurship. Still, before you can officially open your doors, there’s one crucial task you need to acquire the Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is a nine-digit number assigned to your business. It’s essential for filing taxes and conducting other taxable activities, such as hiring employees.
In this blog post, we’ll take the mystery out of obtaining an EIN for your Wyoming Company with a step-by-step guide that’s easy to follow and won’t cost you a dime. Keep reading to learn more!
What are EINs used for?
Having an EIN for your Wyoming Limited Liability Company (LLC) allows you to do the following:
- Fill out Wyoming income tax forms.
- Get your LLC a business credit card.
- Obtain business credit lines or business loans.
- Create your LLC’s business bank account.
- Payroll for employees (if applicable).
- Request business licenses or permits.
- File returns for local, state, and federal taxes.
With this in mind, here are the steps to getting an EIN.
Steps to Obtaining a Free EIN for a Wyoming Business
1. Go to www.irs.gov.
The option “Apply for an Employer ID Number” can be found beneath the Tools menu. Click it.
2. Apply Online.
A Social Security Number makes you eligible, and so does an Individual Taxpayer Identification Number make you eligible. “Apply Online Now” should be selected.
3. Begin the Application
You’ll be taken to a new page that details additional restrictions. Completing your application in a single session is advised. In addition, foreign filers are needed to have an ITIN.
4. Choose the business entity for which you are applying
Some options include the following:
This is relatively simple to establish because they are intended for individual business owners. However, you will owe taxes as an individual on any money earned in the business. You will also be exposed to more liability for business debts and any arising legal issues.
Partnerships are similar to sole proprietorships but differ in the number of those involved; a partnership requires two or more partners to collaborate.
Companies with limited liability (LLCs)
LLCs can hold assets and incur debts independently. As such, they provide some liability protection to their owners. Furthermore, for most legal purposes, they can be held accountable for their actions. Even though you will most likely need to obtain a Tax ID for your LLC, they are always taxed as pass-through entities.
They will not have to pay taxes on the income they generate but pay taxes on money made, including salary, profits, and dividends, as an individual. You must file an annual report in Wyoming and pay a small fee.
These are more complicated because they can issue public shares, subjecting them to many regulations. They are treated as separate legal entities, similar to LLCs, and offer significant legal protection to their owners. Corporations will be required to pay federal income taxes on all eligible income.
Furthermore, their owners pay individuals taxes, resulting in double taxation. However, Wyoming has no state-level corporate income tax, representing a tax break for corporate owners.
On the website, click “Continue” after you’ve chosen your preferred entity type.
5. Verify the Entity Type
The following screen will essentially ask you to confirm your chosen entity type. Click “Next.”
6. Complete the Company Information Form
Depending on the entity you’re applying for and where the business is physically located, you’ll be asked how many officers or members there are. You will select Wyoming.
7. Explain why you’re requesting an EIN
You must select one of several reasons for applying for the EIN. (Purchased an existing business, started a new one, etc.
8. Liable party
Choose whether the applicant is an individual or an existing business. A social security number is required. An EIN must already be in place for the company.
9. Highlight the party’s information
Indicate whether the individual is a shareholder, member, or third party.
10. Details about the entity
List basic information about the business entity, such as its name, the county and state in which it is located, and the date it was established. The IRS keeps all this information private.
11. Include any additional entity information
Describe the nature of the company, its name, formation date, location, and industry. When you’re finished, press the “Continue” button.
12. Letter of Confirmation of EIN (EIN Approval)
Once the IRS issues an EIN Confirmation Letter, you will receive official approval for your Wyoming LLC (CP 575). How you apply for an EIN will determine how you receive your EIN Confirmation Letter. You can download the EIN Confirmation Letter at the end of your online application. The IRS sends your EIN Confirmation Letter if you mail or fax the SS-4.
13. Final approval
The final step is to confirm the information you’ve already entered for the entity. Review the information you’ve entered and make any necessary changes. You should receive your Wyoming company’s EIN almost immediately if you confirm.
Following the steps outlined in this blog post, you can quickly obtain an EIN for your Wyoming Company. However, if you have questions about the process or need additional EIN guidance, we recommend visiting this trusted resource for comprehensive assistance.
With the right tools and resources, you can confidently navigate the process of obtaining an EIN for your Wyoming Company and get one step closer to opening your doors for business.