Applying for a Tax ID (EIN) Number in Texas? Learn more about how to apply online using this short Texas Tax ID Application Guide. You will need to provide some personal information about each of your partners, even if you’re a Non-Profit, Corporation, Estate of Deceased, Trust, Partnership or multi-member LLC. Get more guidance on applying for your official Tax ID (EIN) Number in Texas.
Steps to Obtain your Tax ID (EIN) Number in Texas:
- Prepare Required Information
- Apply for a Texas Tax ID Online
- Apply for a Texas Tax ID by Phone, Mail or Fax
- How Do You Get a Tax ID Number in Texas?
- Do I Need a Texas Tax ID Number?
- How Do I Get a Texas State Tax ID Number?
The process for getting a tax ID can be broken down into two steps: filling out an application and waiting for that application to process. But to fill out the application quickly and efficiently, you’ll need to have the right information in place and available to facilitate your efforts.
For starters, you should have your business name decided on, since this process will register your business with the government. You’ll also need the full legal names of all your business members, including your co-founders and/or partners. While you’re at it, make sure you have their full legal addresses, as well as their social security numbers to complete the application in full.
As for the application itself, there are a few options available to you. You can apply for a tax ID through one of several traditional methods, such as applying by phone, mail, or fax, but it’s much easier and more convenient if you apply for a tax ID online.
The online application is highly accessible- you can complete it on any device, so long as you have an internet connection. It also loads quickly and can be filled out in record time, so long as you have all the information you need to complete the application. The biggest advantage, however, is the amount of time it takes for the application to process. If you’re filling it out online, it can finish processing in less than an hour. At that point, you’ll receive your tax ID in an email, so you can start using it right away.
As implied in the section above, you can also apply for your tax ID over the phone; in this method, you’ll answer many of the same questions, but you’ll answer them with a live agent on the other end. You could also fill out an application by hand, which takes much more time than the online application, and send that application in via mail or fax. This process takes much longer- up to 4 to 6 weeks- and you’ll receive your tax ID via traditional mail at the end of it. There are no real advantages to this method, making online applications preferred for almost any business owner.
If you need a federal tax ID for your Texas business, the application process is simple. Your federal tax ID number is also called your employer identification number (EIN), and is recognizable by its nine-digit format. You’ll be using this number for a variety of applications.
Getting your federal tax ID is a way of registering your business with the federal government. To do this, you’ll need to fill out an application, answering questions about your business and your founding members, including your names, addresses, and social security numbers. There are several methods you can use to apply, described briefly in the preceding sections, but by far the fastest and easiest method is to apply online. You should be able to fill out the application in a matter of minutes, then wait about an hour for your application to process. Once it’s done processing, you should receive your tax ID via email.
A federal tax ID may not be the only ID number your Texas business needs. In addition to the EIN, which exists for federal purposes, you may also need a Texas state tax ID, which exists for state-level purposes. This is usually called your Texas tax ID number, or possibly, just your state tax ID number.
Your federal tax ID number is necessary if you plan on hiring employees, since it’s used for tax purposes. You’ll also need one if your business involves multiple members or partners. EINs are also commonly used in applications for financial services, such as lines of credit, loans, and business bank accounts, and may be required when applying for certain licenses and permits.
You may also need a Texas state tax ID number, in addition to your EIN. You’ll need this unique identifier if you plan on hiring employees in Texas, or if you’re going to sell taxable goods and services in Texas. If your business is going to owe excise taxes, which apply to goods like alcohol, tobacco, or gasoline, you’ll also need this state-level ID number for your Texas business.
Most businesses operating in Texas will require both a federal tax ID and a Texas state tax ID number. Fortunately, despite the fact that these two numbers are distinct, the process for applying to them is highly similar and easy to follow.
If your Texas business needs a state-level tax ID, you can apply online- just like you would with a federal tax ID. You can apply through traditional methods as well, but these tend to take much longer, and are more of a hassle than they’re worth, since they offer no practical advantages. Filling out the application shouldn’t take long, but State Tax ID delivery for Texas state tax IDs can take a bit longer than with federal tax IDs. Depending on a handful of factors, it could take up to several weeks- but it’s still faster to apply online than it is through other, traditional methods. Note that you may also need your federal tax ID in place before applying for a Texas state tax ID. Federal Tax IDs can be delivered within one hour of completing the Federal EIN (Tax ID) Application.