Your Missouri business probably needs a tax ID number. Do you know the best way to get one? There are many types of business entities, whether you’re trying to obtain a tax id for limited liability companies (LLCs), sole proprietorships, corporations, nonprofits, and basic partnerships, but any type may be required to have a federal tax ID EIN number. The faster you get one, the faster you can get your business legally operational. This article will teach you everything you need to know about tax ID numbers, including the steps you need to take to get one in the fastest possible way.
Steps to Getting a Missouri Tax ID (EIN) Number
- Get Information From Your Founding Members
- Missouri Tax ID: Apply Online for a Quicker Turnaround
- Missouri Tax ID: Apply via Phone, Mail or Fax
- What Is a Missouri State Tax ID Number?
- How Do Missouri LLCs Get a Tax ID Number?
- Missouri State Tax ID Number: What It Is and How to Get One
Your first responsibility is to get some personal information from the founding members of your business, including yourself and any partners you have. No matter what, you’ll be filling out an EIN application answering questions about these people. If you’ve gathered this information before you begin, you can finish the application in record time.
You won’t need much. You may even have this information on hand. You’ll need to record the full legal names and legal addresses of all parties. You’ll also need to provide their social security numbers (SSNs).
In terms of turnaround time and convenience, there’s no better method than the online application. You’ll need to complete an application to get a tax ID number, following the same formula regardless of which method you choose. In this formula, you’ll provide some personal details, submit the form, then wait to receive your tax ID number.
The online application is the best option for nearly all entrepreneurs. It’s much more accessible than, say, calling someone on the phone or tracking down a paper application. With this method, you can apply anywhere, at any time, so long as you have a digital device and an internet connection. If you’ve gathered the information mentioned in the preceding section, you can finish the application in just a few minutes.
After submitting the application, you’ll enjoy the best practical benefits of applying online: the turnaround time. As long as you’ve finished the entirety of the application, you’ll receive your tax ID in less than an hour, over email.
Though the online application method is recommended to all business owners in Missouri, there are also some traditional application methods that are still available. For example, you could call a representative and answer questions about yourself and your business partners like an interview. You could also mail in an application, or fax it in if you still have a fax machine. These methods tend to have more requirements, and take much longer to use, but the turnaround time is where they really suffer. If you use these methods, you’ll wait 4 to 6 weeks to get your official tax ID number by mail.
The terminology surrounding tax ID numbers can get very confusing, especially when the Missouri state tax ID number enters the mix. First, there’s the federal tax ID number, which is often referred to simply as a "tax ID." You may also hear this called an employer identification number, or EIN. It’s a 9-digit number assigned to your business when you register with the federal government, and you’ll need one for several reasons. For example, you’ll need one to hire employees, or if your business has multiple members. You’ll also need one to apply for a business license or permit, and to get any financial product for your business (like a loan, line of credit, or business bank account).
In addition to this, most states (including Missouri) also offer a state-level tax ID number, which is used for state-level functions, like employment-related taxes and sales taxes.
Many entrepreneurs in Missouri want to start a limited liability company (LLC) for their business idea. LLCs have a few distinct advantages over other business types, including shielding you from liability issues and giving you more control over your taxes. However, if your LLC has multiple members or if you’re going to hire employees, you’ll definitely need to get a tax ID number.
There are several ways for an LLC to get a tax ID number, but some are faster than others. If you’re looking for the quickest, most efficient way, you’ll want to pursue the online application. If you apply online, you’ll just have to answer a few questions about you and your founding members, which should only take you a few minutes if you have this information on hand. Once you submit the application, assuming everything goes well, you should get your tax ID in less than an hour. This enables your LLC to start up and start generating revenue much faster than usual. Note that your LLC may need a Missouri state-level tax ID number in addition to a federal tax ID number.
Most states have some kind of state-level tax ID number to serve as a complement to your federal tax ID number. In Missouri, you’ll need this state-level tax ID number if you’re going to hire employees in the state of Missouri, if you’re selling taxable goods and services in the state, or if you’ll owe excise taxes, which apply to regulated goods.
If you need to get a Missouri state tax ID number, you’ll need a federal tax ID number first. Applying online can help you obtain this number in less than an hour. Once you have it, you can use it on your state-level tax ID number application. While traditional methods exist to apply for your Missouri state tax ID, it’s much more convenient to apply online. You’ll need to wait 4 to 6 weeks to receive your state-level tax ID number, but this is still faster than the alternative.