If you’re a Wisconsin entrepreneur, you should know the importance of getting a tax ID number before you begin operations. Most businesses need one, and all businesses can benefit from one, but what’s the best way to get it? Nonprofits, limited liability corporations (LLCs), corporations, partnerships, and sole proprietorships may all need a tax ID number, depending on how they operate. Fortunately, if you use the right application method, getting a tax ID these days is simple, particularly because the tax id obtainment process is very close to those of getting a tax ID in Texas or applying for your tax id in Ohio. Either way, this guide will teach you everything you need to know to get a tax ID number for your Wisconsin business quickly.
Steps to Obtain a Wisconsin Tax ID EIN Number
- Gather Information From Your Business Partners
- Wisconsin Tax ID: The Online Application
- Wisconsin Tax ID: Apply by Phone, Mail or Fax
- How Does a Wisconsin Business Get a Tax ID Number?
- Do All Wisconsin Businesses Need a Business License?
- Wisconsin State Tax ID Number: What It Is and How to Get One
Getting a tax ID number requires you to register your business with the government. There are a few different ways to go about this, but you’ll always repeat the same basic steps. You’ll be required to provide some key pieces of information on yourself and your business partners, as well as your business overall. If you gather this information ahead of time, you can speed through the application, ultimately getting your tax ID faster.
At a minimum, you’ll need the legal addresses and full legal names of all your business’s founding members, as well as their social security numbers (SSNs).
If you’re like most entrepreneurs in Wisconsin, you’re interested in obtaining a tax ID number as quickly and seamlessly as possible. As you might suspect, while there are several application methods you could use, some application methods are strictly better than others. Let’s take a look at the online application method. When applying for your tax ID online, you can call up the application form at any time, and any place, as long as you’re using a device with an internet connection. The form is easy to navigate and understand, which is a massive plus; with the right information gathered in advance, you can complete it in just 5 minutes.
After submitting the online application, you’ll need to wait to receive your tax ID. Fortunately, you’ll only need to wait an hour, sometimes less. After that, you’ll have your tax ID number in your email inbox, and you can start your business officially.
The online application is strongly recommended for all business owners. However, it’s not the only application method available to you. There are also traditional methods, most of which existed long before the internet, though they aren’t very fast or convenient.
If you find a paper application, you can complete it by hand, then mail or fax it in. If you’re willing to wait for a live representative, you can answer questions about your business over the phone. Either way, you’ll be forced to wait much longer to get your tax ID number, sometimes up to 4 to 6 weeks.
If you’re new to the concept of tax ID numbers, you might be confused about what they are and how they function. In most cases, the term "tax ID" is just shorthand for your federal tax ID number. This 9-digit number is also called an employer identification number (EIN), and it’s assigned to your business when you register with the federal government.
You’ll need one of these if you’re going to hire employees, or if your business will have multiple members by default, as is the case with most corporations, LLCs, and partnerships. This is a required number by most financial institutions as well, so you’ll need one to apply for loans, business bank accounts, or lines of credit. You may also need one to complete other kinds of paperwork, like business license applications.
If you’re interested in getting one, you can apply for it in many different ways. Traditional methods were common before the internet (like applying by phone, mail, or fax), but these days, most business owners apply online. Applying online is highly convenient and easy to understand, and if you fill out the application appropriately, you should be able to get your tax ID via email in an hour or less.
Your Wisconsin business may also need some kind of license to operate legally. While there isn’t a one-size-fits-all "license" to run a business in Wisconsin, there are several different types of licenses, permits, and certifications your business might need.
To make matters complicated, there isn’t a single organization or single authority that can determine whether you need a license or certification. Instead, your needs will vary depending on the industry in which your business operates, your location, and other factors. Make sure to contact your local Chamber of Commerce to learn what rules and restrictions exist for businesses like yours. Note that you may need licenses at both the state and local level.
Regardless of what type of licensure or certification you need, you’ll need to provide a federal tax ID number on your application. Make sure you have this before trying to apply.
You may also need to have a Wisconsin state tax ID number for your business, which is distinct from your federal tax ID number. This, too, is a unique identifier for your business, but it’s used for different purposes. You’ll need one if you’re hiring employees in Wisconsin, or if you need to account for excise taxes and sales taxes in the state.
To get a Wisconsin state tax ID number, you’ll need to provide a federal tax ID number, which means you need to get one if you haven’t already. It only takes an hour if you use the online application, so make sure you take advantage of it. Like the EIN application, you’ll have a few different options to apply for your state tax ID number, and again, applying online is your best option. It’s much more convenient, and if you use it, you’ll get your state tax ID in just 4 to 6 weeks.