You may need to apply for an employer identification number (EIN) with the IRS if you have started a new business, need the number for banking purposes, made changes to an existing LLC, plan to hire employees or need to start a line of credit for your business. As you work through the process of obtaining a number for your business and fill out your tax ID application, what problems should you watch for? If you get a EIN reference number 101 error, it may be for one of the following reasons.
1) Entity Name Conflict
If your entity name is not unique and the IRS finds one that is similar, you may be denied an EIN. Limited Liability Companies and corporations can’t file articles of organization or incorporation until there is a unique entity name for that specific state.
2) Multiple States
The application itself asks for the address and state in several different places. If the business is incorporated in a different place than the physical address, it may cause a 101 error because there are multiple states listed on the application. The IRS will then check each state to ensure that the entity name is unique in each one before the number is issued.
Read Also: Where Can I Find An Estate Tax ID Application?
3) Electronic Numbers
If you have obtained your EIN electronically, you cannot use that number to obtain other EIN numbers electronically. To determine if your EIN was obtained online, check for the following numbers at the beginning:
4) You Are Already a Responsible Party
If you are the responsible party on another EIN application that was approved, you may be denied when you apply for a second one with another entity. When numbers are obtained online, you can only be the responsible party on one EIN.
5) Incomplete Paperwork
If your application is missing any vital information, it will likely be declined. Fortunately, if you need to form LLC online or apply for an EIN quickly, Gov Doc Filing can ensure that all your forms are filled out correctly. Visit the website today to learn more about professional tax help.
Thank you James…This page was very helpful and allowed us to resolve the issue by being prepared.
I applied for an EIN for our LLC, but got an error code. I am unable to get through on the phone to the IRS. We need the EIN # urgently to open bank accounts and other business related accounts. Do you have any advice?