If you’ve started a new business in Ohio, the IRS requires that you get your hands on a Ohio business tax ID, an EIN. It’s basically your business’ Social Security Number, which you’ll need if you’re business will be banking, making changes to an existing LLC, has any plans to hire employees or need a line of credit. Now, of course, you’ll want to do everything you can to get one, but, sometimes, you might get slapped with a reference number 101 error. Here are some of the common offenders.
Entity Name Conflict
If your business’ name isn’t exactly unique and the IRS bumps into one that’s similar or the same, you might be denied an EIN. Limited Liability Companies and corporations can’t file articles of organization or incorporation, and they can’t get an EIN until they set up a unique entity name for themselves for that state.
The application for an EIN will ask you for the address and the state in several different places. The problem pops up if the business is incorporated in a different place than where it’s physically located, which has a chance of causing a 101 error due to the fact that there are multiple states listed on your application. The IRS will have to check each state to ensure that your entity name of choice in each state is unique before handing you your EIN.
If you’ve already got your EIN online, then you can’t use your number to get other EINs electronically. If you’re wondering if your Ohio business tax ID was acquired online, you just need to check the first two digits in the sequence. Your EIN was acquired online if it starts with any of the following pairs:
You’ve already got one.
If you’re already a responsible party and/or one of your other EIN applications have already gotten the thumbs up, you may get denied if you try to get another, even for another entity. The IRS set up the online application so that a person can only be responsible for one EIN.
Well, duh. If your application has any mistakes or missing info, then it’ll get rejected. If you need to submit an LLC application online or get your hands on an EIN ASAP, there are sites that can help you do just that.