Where to Get a Tax ID for Your Business
A tax ID, also called an EIN, is issued by the Internal Revenue Service for free through the IRS website, by mail, fax, or phone. Most business owners apply online because it is the fastest method and yields an EIN immediately upon validation. State tax IDs are separate and are obtained through your state's department of revenue or taxation, and the process varies by jurisdiction.
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Applying for a Federal EIN Online
The IRS EIN Assistant is the primary federal source. You can apply Monday through Friday, 7 a.m. to 10 p.m. Eastern Time. The application is straightforward and requires details about the business structure, the responsible party, and the reason for applying. Once the information is validated during the session, the EIN is issued instantly.
Alternative Federal Application Methods
If you cannot apply online, the IRS offers three other options:
- By Fax: Submit Form SS-4 and receive the EIN within four business days.
- By Mail: Send Form SS-4 and wait four weeks or more for processing.
- By Phone (International Applicants): Call 267-941-1099 to apply if you are outside the U.S.
State Tax ID Registration
After obtaining a federal EIN, you may need a state tax ID for sales tax, withholding, or franchise tax purposes. You apply through your state's department of revenue or taxation portal. Some states issue the ID automatically during business registration, while others require a separate application.
Third-Party Services and Caution
Commercial services can obtain the EIN on your behalf for a fee, but the IRS provides the number at no cost. If you use a third party, ensure they are legitimate to avoid unnecessary charges. The IRS itself does not charge for EIN issuance.
Who Needs a Tax ID
Businesses that have employees, operate as partnerships or corporations, file certain tax returns, or withhold taxes on non-resident alien income generally need an EIN. Sole proprietors without employees and single-member LLCs may use their Social Security number, but an EIN can still be beneficial for privacy and banking.