Delaware LLC Requirements to Get a Federal Tax ID

Once a Delaware LLC has its Certificate of Formation stamped and approved by the state of Delaware, the next step is to obtain a Federal Tax ID Number, also known as an EIN, from the IRS. Please note that this not a Delaware Tax ID (from the state), but rather a federal number. You do not need to apply for a separate Tax ID from the state of Delaware itself.

How Do You Get a Tax ID Number for a Delaware LLC?

An SS-4 form should be completed and submitted to the IRS in order to generate the Federal Tax ID number. When applying for the EIN, you will be required to answer a number of questions in order to complete the SS-4 application. 

Here is a list of information you'll be asked to provide:

• Name of the LLC: The exact name submitted to the Delaware Division of Corporations office; be sure to include the full name with "LLC" at the end.
   
• To whom should notifications be sent: The IRS would like to know with whom they should communicate; this person can be located anywhere in the world. Some examples could be the LLC’s member, manager, tax professional or attorney.
   
• Mailing address of the LLC: Where tax-related correspondence should be sent; this does not have to be an address in the United States. However, if you do not have a U.S. address or a U.S. Social Security Number, you will need to obtain an Individual Tax ID Number (ITIN) first.
   
• County and state where principal place of business is located: The IRS needs to know exactly where this will be. The principal place of business can be located anywhere in the world and does not have to be in the United States.
   
• Name and Social Security number of the responsible party: Typically this is one of the members of the LLC. Keep in mind that a member of a Delaware LLC does not have to be located in the U.S. or even a citizen of the U.S. The member can be located anywhere in the world. If the member does not have a Social Security number, that is acceptable; however, if the member does have a Social Security number, it must be provided.
   
• How the LLC is going to be taxed: This is a crucial step and can have drastic tax consequences for the LLC. Typically, the LLC will automatically be classified as a partnership if it has more than one member.
  
  If there is only one member, the classification is a sole proprietorship (for a single-member LLC) for federal tax purposes; this means the LLC will have the asset protection the LLC affords but the taxation is the same as a partnership (for a multi-member LLC) or a sole proprietorship (for a single-member LLC).
  
  An LLC will typically be required to file the same federal tax forms as a partnership or sole proprietorship when it comes time to prepare and file the federal tax returns with the IRS.
  
  An LLC may elect to be treated and taxed as an S corporation or a C corporation by the IRS. It may be a good idea to consult a tax professional regarding the consequences and benefits of making the S or C corp election with the IRS.
  
  Clients can change the classification with the IRS at any time in the future with the help of a tax professional.
   
• Date the business was started or acquired: This is typically the date of formation of the Delaware LLC.
   
• Closing month of the accounting year: To keep things simple, most of our clients choose December, unless specifically instructed by their tax professional to choose otherwise.
   
• Highest number of employees expected: This information can always be updated and is hard for new companies to gauge since there are many factors that come into play. Clients typically do their best to estimate this figure.
   
• Select a category the LLC best falls into: There are 12 categories. Do your best to choose one. If you're unsure, there is an option for "Other."
   
• Brief description of the business: Do your best to tell the IRS a little bit more about what the LLC will be doing. If Construction was selected as a category, what type of construction? If Other was selected as a category, provide a brief description of the activities.

Don't let the process of obtaining a Tax ID number for your Delaware LLC intimidate you. We offer a service to quickly and easily obtain a Tax ID number for a new Delaware LLC. Let us handle the process for you, so you won't have to manage the stress and aggravation of dealing with the IRS.