Jeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business. From answering your legal questions to providing the right software for your unique situation, he brings his knowle.
Jeff White ContributorJeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business. From answering your legal questions to providing the right software for your unique situation, he brings his knowle.
Written By Jeff White ContributorJeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business. From answering your legal questions to providing the right software for your unique situation, he brings his knowle.
Jeff White ContributorJeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business. From answering your legal questions to providing the right software for your unique situation, he brings his knowle.
Contributor Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Written By Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Staff Reviewer Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Updated: May 2, 2024, 2:36pm
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Every individual person gets a tax ID number when they are born, known as your Social Security number (SSN). Businesses also need a tax identification number, but in order to get one, you’ll have to register for one. These numbers are required to file business-specific taxes or to hire employees. Here, you’ll learn whether you need a tax ID number and how to get a tax ID number in 2024.
A tax ID number isn’t necessarily a requirement for all businesses (sole proprietors are not required to have one), but it is impossible to accomplish certain things unless you have one. While not every business needs to get a tax ID number, most will want to. Here are the main reasons why you should consider obtaining a tax ID number for your business:
Additionally, some financial institutions may not allow you to open a business bank account without one, and there may be some types of business licenses where one is required, but this is not always the case.
Regardless of the reason you may need one, it can be a good idea for every business to have a tax ID number in case the need arises at any given time.
An employer identification number (EIN) is provided by the IRS to your business so that your business can file taxes, and taxes you pay related to employees can be tied directly to your business. This is the same thing as a tax identification number and these terms are used interchangeably. When someone says they need your tax ID for your business, they are referring to your EIN number.
Some people refer to a tax ID number when talking about an individual tax identification number (ITIN). This is a tax processing number for certain nonresident aliens, their spouses and dependents who do not qualify for a Social Security number. This is only for individuals and not for business entities.
Overall, a tax identification number (TIN) refers to ID numbers that are provided by the IRS for the purpose of properly tracking taxes. Both businesses and individuals need a TIN in order to properly file taxes. The EIN is the only identification number that the IRS gives out specifically to businesses.
In order to get a business tax ID number, you’ll have to fill out an online application at IRS.gov and provide the necessary information. Here are the three steps you can take to immediately get your business tax identification number:
Before completing your online application with the IRS, you’ll need to register your business with the state you plan to operate in. The entity type and registration information will be needed when filling out the tax ID number application.
The online application will ask you for your formation date, legal business name, address and the state where you’re registered. Your business name must be approved by the state of operation prior to filling out your tax identification number application. A sole proprietor who must pay excise taxes could still obtain a tax ID number once a DBA (doing business as, a registration of a name other than the owner’s legal name) is registered with the state.
You will need quite a bit of information about the business owner as well as the business itself before moving forward with the application. For example, you should have the following information on hand when filling out the application:
Keep in mind that in order to be eligible for a business tax identification number, you’ll need to be a U.S.-based business and the applicant (you) must have a valid individual tax identification number.
Once you have this information, you’re ready to fill out the online application through the IRS website. Once your information is validated during the application process, you can submit your application and immediately get your business tax identification number in a PDF from the IRS. You can download, print or save the letter that contains your new tax number.
