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How to Get a Tax ID Number
             

How to Get a Tax ID Number


Here's how to get a tax ID number.



There are four tax ID numbers:


1. Business Tax ID Number, which can be an EIN, a Sales Tax ID Number or A Business Tax Registration Number

2. An Ein Number, which is an Employer Tax ID Number and could be a federal EIN or a State EIN

3. Federal Tax ID, IRS Tax ID Number - Federal Tax ID Number, which could be an EIN and/or a Business Tax ID Number

4. Business Tax ID or Tax Registration





A. Business Tax ID Number


A business tax ID number is required for all businesses.  For example, Paul and Mary fall in love, get married and buy a house. Then they decide to start a business selling cangaroo backpacks from home. I.e., they start it  with a website with a home office online from home. Thus, it is purely a home based business with an internet presence selling merchandise.  In such a case, he will need to obtain the necessary licensing. One of these is a business tax ID that all businesses must have.  If Paul and Mary decide to go into business as husband and wife or just as a sole proprietor, they must either obtain a federal tax ID number or use their social security number as a business tax ID number.   If they will register the business as a partnership, LLC, or corporation, they must use the federal tax ID number as a business tax ID number.  Thus, that would be their business tax ID number.



B. EIN Number


1. Federal EIN

An EIN Number, which is an Employer Tax ID Number and could be a federal EIN or a State EIN.  EIN stands fro Employer Identification Number and it is only for employers. So, continuing on the above example, if Paul and Mary decide to hire employees, or one or both of them is registered and paid as an employee of their own company, the company would be an Employer. An employer must obtain both a federal EIN number and state employer EIN number.  Here's where it might get a little confusing.  A Federal EIN can be use both as an EIN and as a business tax ID number, whereas, a state EIN can only be use as an employer identification number.




 Federal Tax ID Number


 A Federal Tax ID, or IRS Tax ID Number / Federal Tax ID Number could be an EIN and/or a Business Tax ID Number.   Most federal agencies, will ask small businesses for a "Federal Tax ID Number" or "Employer Identification Number (EIN)," or your social security number if you apply as a sole owner proprietor.  A federal tax ID number is used as an employer number and as a business tax ID number as well as the following:






















Do you have employees?You need it.
Do you operate your business as a corporation, LLC, or a partnership?You need it.
Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?You need it.
Do you withhold taxes on income, other than wages, paid to a non-resident alien?You need it.
Do you have a Keogh plan?You need it.

Are you involved with any of the following types of organizations?



  • Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns

  • Estates

  • Real estate mortgage investment conduits

  • Non-profit organizations

  • Farmers' cooperatives

  • Plan administrators
You need it.
 


2. State EIN

A state employer Identification Number SEIN is required only if you will hire employees.  Essentially, there are two main state tax ID numbers: A State EIN and a State Sales Tax ID number.  The latter is issued to wholesalers, retailers as a retail tax ID number and or wholesale / resale tax ID number.


 













How to Get a Tax ID Number

C. Business Tax ID Number (Sales Tax ID Number)


 sales tax ID number  is also called a wholesale License or ID number that you need if you sell or lease taxable equipment and or merchandise.   You can buy or sell wholesale or retail with this number.  AKA resale ID, seller's permit, reseller license etc.

A Seller's Permit is ALSO CALLED a resale ID, wholesale ID, retail ID, re-seller's license, state sales tax ID, tax ID, resale number, resale certificate, or vendor's license).  You will need it to buy or sell wholesale and sell in small amounts (retail).













D.  A Business Tax Registration ID Number


Every business must be identified by a business tax ID, which is either a federal tax ID number or a sole owner's social security.  



Sole owners may use a
 Federal Tax ID as a business tax ID if they want.



A federal tax ID is also a federal employer tax ID and can be used to pay federal employment tax. If an employer, a business must also get a state employer tax ID Number.



Other than the above, there is another type of tax registration that has a tax number.  It is called a 
business license or permit or a home occupation permit and all business must get this one as well.



Thus, businesses are required to get a Business tax id, like  a 
Federal Tax ID and a  tax registration business license.





Obtaining a business tax id registration license is a separate business tax registration type as opposed to a federal tax ID that can be used as a business tax ID at the federal level.



  There are 4 Business Tax ID Numbers.  A federal tax ID number (Federal EIN), a State Employer (State EIN) Tax ID Number, a State Sales Tax ID Number ( seller's permit / wholesale license), and a Business Tax Registration ID (Business License).









How It Works Simply submit a form with your business information and we will get the tax IDs and or licenses Learn how to apply for your tax number yourself> safely and quickly. Get your tax number today. Click To Get It Now





Here Are The Tax  ID Number(s) & Other Registrations Required When Starting a Business


 
 



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