Are you in need of a tax ID number? Most types of businesses, including partnerships, LLCs, corporations, and nonprofits, will need to get a tax ID number before they can operate legally. This is similarly true in most states, including Virginia, Texas, as well as obtaining a tax ID in Ohio. Getting an IRS tax ID number is often one of the first steps taken by serious entrepreneurs, since it enables them to do things like hire employees and open business bank accounts. If you’re confused about the nature of tax ID numbers, this guide will teach you everything you need to know, including how to get one for your Virginia business.
Steps to Getting a Virginia Tax ID (EIN) Number
- Business Founding Member Information
- Online Applications for a Virginia Tax ID
- Traditional Applications for a Virginia Tax ID by Phone, Mail or Fax
- How to Get an EIN for Your Virginia Business
- How to Apply for a Virginia State Tax ID Number
- Virginia State Tax ID Number: What It Is and How to Get One
Tax ID numbers are given to businesses when they register with the government. But to register successfully, you’ll need to provide personal details on all your business’s founding members. This includes you and any partners with whom you share ownership in the business. Because you’ll need to provide their personal details on the application, it can be efficient to get those details before you begin. Start by getting their full legal names and legal addresses. You’ll also need to provide their social security numbers (SSNs). Gathering this information in advance can help you complete the application faster.
When you’re ready to get a tax ID number for your Virginia business, you’ll need to choose how you want to apply. No matter which method you choose, you’ll have to follow the same high-level approach; you’ll answer a number of questionnaire prompts requesting information about you and your business’s other founding members. After providing that information, you’ll submit the application and wait to get your tax ID. Most methods are similar, but one is superior in almost every way, presenting much simpler formatting and a much faster turnaround time: the online application. It’s highly recommended that all entrepreneurs use the online application when getting a tax ID number.
You can access this application on practically any digital device, and at any time, instantly making it more convenient than traditional methods. The form is easy to fill out, and if you have the right information in front of you, you can finish it in 5 minutes. When done, you can receive your tax ID number via email in less than an hour, which is remarkably quick compared to other methods.
While online applications are much more favorable, there are some traditional application methods that are still available to entrepreneurs. If you manage to find a paper application, you can answer the questionnaire on it. Then, you can mail or fax it. You could also answer questions over the phone, in a kind of interview. The biggest problem with these methods is that they’ll take 4 to 6 weeks to get you a tax ID number, which you’ll receive by mail. Compare that to the hour turnaround of the online application, and you’ll see why the online application is so much better.
Your Virginia business probably needs a tax ID number. The general term "tax ID" most often refers to your federal tax ID number. This is also called an employer identification number, or EIN. It’s a 9-digit, unique number meant to identify your business when you register it with the federal government. It’s used for many purposes, and is required in several different situations.
For example, you’ll need this number to hire employees, or if your business has multiple partners. You’ll also need one to apply for most financial products, like business bank accounts, lines of credit, and business loans. Tax ID numbers are also necessary if you need any business licenses or permits, since you’ll provide them on these applications.
There are a few different methods to get one, but it’s best to apply online. If you’re ready with the right information on your business’s founding members, you can finish the online application in a matter of minutes. From there, you’ll receive your tax ID in less than an hour.
Your federal tax ID number applies at the federal level, but you may also need to have a state tax ID number, which applies at the state level. Many Virginia businesses will need both a federal tax ID number and a Virginia state tax ID number. Though similar in name, these two tax ID numbers serve different purposes for your business.
For example, you’ll need a Virginia state tax ID number for most state-level tax purposes. You’ll need one if you’re hiring employees in Virginia, so you can account for state-level employment taxes. You’ll also need one if you’re selling taxable goods and services in the state, or if you’re preparing for excise taxes, which apply to regulated products like alcohol, tobacco, and gasoline. Fortunately, applying for a Virginia state tax ID number is very similar to applying for a federal tax ID number, and you should be able to get through the process relatively quickly.
Remember, you’ll need a Virginia state tax ID number if you’re hiring employees in Virginia, selling taxable goods in the state, or if you’ll owe excise taxes. To get one, you’ll need to answer a questionnaire about your business and its founding partners similar to the one you used for your federal tax ID number. In fact, you’ll need to have a federal tax ID number before you complete this state-level application, so apply online if you haven’t gotten yours yet.
Once you have it, you can apply for your state tax ID number online. Traditional methods exist for the Virginia state tax ID, but applying online is much more convenient and faster. You shouldn’t have trouble finishing the application in a timely manner, and from there, you’ll get your state tax ID in just 4 to 6 weeks.