Introduction
If you’re starting a small business, one of the first steps is securing a Tax ID number—also called an Employer Identification Number (EIN). Wondering how do you get a tax ID number for a small business? Here’s a step-by-step guide to help you through the process.
What Is a Tax ID Number?
A Tax ID Number is a nine-digit number issued by the IRS to identify your business for tax and reporting purposes. It’s required for:
- Hiring employees
- Filing taxes
- Opening a business bank account
- Applying for business licenses
Who Needs a Tax ID Number?
You’ll need a Tax ID (EIN) if:
- You operate as an LLC, partnership, or corporation
- You plan to hire employees
- You have a Keogh plan
- You’re required to pay federal taxes
Even sole proprietors often apply to separate business and personal finances.
How Do You Get a Tax ID Number for a Small Business?
Here’s how to apply:
1. Apply Online via the IRS Website
The easiest way to get your EIN is online through the IRS EIN Assistant.
- Available Mon–Fri, 7 a.m.–10 p.m. EST
- You must complete the application in one session
- EIN issued immediately upon completion
2. Apply by Fax or Mail
- Fax: Fill out IRS Form SS-4 and fax it to the appropriate number based on your location.
- Mail: Send Form SS-4 to the IRS mailing address. Processing takes up to 4 weeks.
3. Apply by Phone (International Applicants Only)
If you’re applying from outside the U.S., call 267-941-1099 (not toll-free) to apply by phone.
What Information Do You Need?
When applying, you’ll need:
- Legal business name
- Business structure (LLC, partnership, etc.)
- Responsible party’s name and SSN or ITIN
- Business address and reason for applying
Is There a Fee?
No. Getting an EIN directly from the IRS is free. Be cautious of third-party services that charge for what’s a free process.
Final Thoughts
So, how do you get a tax ID number for a small business? Simple—apply online through the IRS for fast and free service. Whether you’re launching a new LLC or formalizing your freelance business, getting a Tax ID is essential.
