South Dakota Employer
Identification Number (EIN)
CONTENTS
Obtaining an employer identification number (EIN) isn’t mandatory for small businesses in South Dakota that operate without employees. However, securing an EIN proactively is advisable, as your business needs may evolve. Additionally, an EIN is often required for activities such as filing tax returns and opening business bank accounts, so being prepared can be beneficial.
In this article, we’ll guide you through the essentials of acquiring a South Dakota EIN.
What's a South Dakota EIN?
- Federal tax ID number
- Federal employer identification number (FEIN)
- Federal tax identification number (FTIN)
- South Dakota federal tax ID number
It’s important to note that this is a federal tax ID number issued by the IRS, not a state-specific tax ID. For a South Dakota state tax ID number, you would need to apply through the South Dakota Department of Revenue.
How to Obtain a South Dakota EIN
The process of obtaining an EIN in South Dakota involves applying through the IRS. The method varies depending on whether you are a US citizen/resident or a non-citizen. Regardless of your status, obtaining an EIN is free of charge.
US Citizens and Residents
If you’re a U.S. citizen or resident with a Social Security Number (SSN) or individual taxpayer identification number (ITIN), you can apply for an EIN online. The IRS’s online EIN application is available Monday through Friday, 7:00 a.m. to 10:00 p.m. Eastern Time.
Alternatively, you can complete Form SS-4 and submit it via fax or mail, though this method takes longer.
Non-Citizens
Non-U.S. citizens without an SSN or ITIN must complete Form SS-4 and submit it to the IRS by fax or mail. Faxing is typically faster than mailing.
See this thorough guide if you need more details on filling out the SS-4 Form.
South Dakota EIN Approval
Applicants using the online method receive their EIN immediately upon completion. For faxed applications, approval can take up to two weeks, while mailed applications may take up to four weeks.
By following these steps, you can efficiently obtain an EIN for your South Dakota business, ensuring you’re prepared for future business operations.
South Dakota EIN FAQs
Getting an EIN is simple, but the matters surrounding it may not be. Here are some FAQs to help you out.
Can I use my South Dakota EIN for multiple businesses?
No, each business entity must have its own EIN. If you own multiple businesses, you may need to apply for separate EINs depending on their legal structures. However, if you're operating multiple businesses under the same LLC or corporation, you may not need additional EINs.
Do I need a South Dakota EIN if I’m a sole proprietor?
Not necessarily. Sole proprietors without employees or excise tax obligations can use their Social Security Number (SSN) instead of an EIN. However, an EIN may still be useful for opening business bank accounts or protecting your SSN from frequent use.
Can I change my South Dakota EIN if my business structure changes?
Yes. If you change your business structure (e.g., from a sole proprietorship to an LLC or corporation), the IRS typically requires you to apply for a new EIN. However, certain modifications, like changing your business name, usually don’t require a new EIN.
Do I need to renew my South Dakota EIN?
No, EINs are permanent and do not need to be renewed. However, if your business closes or undergoes a major structural change, you may need to apply for a new one.
Step-by-Step Guide to
Forming a South Dakota LLC
South Dakota LLC Starter Guide
A step-by-step guide to forming an LLC in South Dakota, covering all legal and operational requirements.
1. South Dakota Name Search
Learn how to check the availability of your desired LLC name and ensure compliance with South Dakota naming rules.
2. South Dakota Registered Agent
Understand the role of a registered agent and how to choose one for your South Dakota.
4. South Dakota Operating Agreement
Discover why an Operating Agreement is crucial for defining the structure and management of your LLC.
5. South Dakota EIN Number
Learn how to obtain an Employer Identification Number (EIN) from the IRS for tax and banking purposes.
6. South Dakota Business License
Get information on the required business licenses and permits for operating legally in South Dakota.
