Looking to apply for a tax ID (EIN) for your Indiana business?
Like most business owners, you probably need a tax ID for your business. There are many types of
business entities you could create, including corporations, nonprofits, limited liability companies (LLCs), and more, and most of these will require a tax ID by default. Knowing the best way to apply for a tax ID can save you time, reduce your stress, and most importantly, help you start your business faster. This guide will teach you all the basics you need to know.
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Steps to Applying for a Tax ID (EIN) Online
- Tax ID Application: Required Information
- Online Application: Get Your Indiana Tax ID Online
- Other Application Methods: Get Your Indiana Tax ID by Phone, Mail or Fax
- How Should You Apply for a Tax ID
- What Is Indiana’s TID Number?
- How to Obtain an Indiana State Tax ID Number
1. Tax ID Application: Required Information
To get a tax ID number, you’ll need to complete an application. While there are several application methods available to your business, all of them follow the same loose format; you’ll answer a few questions related to your business and its founding partners, submit the application, then wait to get your number by mail or email (depending on the method you choose).
If you want to complete the application faster, you can gather the necessary information in advance. You’ll need to know all your founding members’ full legal names, legal addresses, and social security numbers (SSNs).
2. Online Application: Get Your Indiana Tax ID Online
While there are several possible approaches to applying for your tax ID, there’s one method that’s objectively better than the others: applying online.
The online application is noticeably more convenient than following one of the traditional application methods, like applying over the phone, by mail, or by fax. You won’t have to look for a paper application, nor will you need to comply with a strict schedule. Instead, you can access the online application using any internet-connected device, and at any time.
If you have the necessary information, you can also complete the application quickly, sometimes in as little as 5 minutes, thanks to the form’s easy-to-navigate format. When you’re done, you’ll need to wait for your tax ID to come in via email, but it shouldn’t take long. Most people, when using the online application, wait an hour or less.
3. Other Application Methods: Get Your Indiana Tax ID by Phone, Mail or Fax
It’s recommended that every entrepreneur get their tax ID number by applying online. However, there are some other application methods you could feasibly use. These more traditional methods arose long before the internet existed, yet are still around despite their current disadvantages. In every case, you’ll be answering the same questions, but you might answer them on a paper application, or over the phone in an interview format. The big disadvantage of these methods is the length of time they take to return a tax ID to you; rather than waiting merely an hour to receive your tax ID via email, you’ll be forced to wait 4 to 6 weeks to receive your tax ID by mail.
4. How Should You Apply for a Tax ID
In Indiana, most businesses will need to have a federal tax ID number, which is often referred to simply as a general “tax ID.” You may also hear this number referred to as an employer identification number, or EIN. This is a 9-digit number assigned exclusively to your business for the purposes of identification and accounting for taxes.
There are several conditions that could force you to apply for a tax ID, including if you’re hiring employees or if your business is going to include multiple partners. You’ll also need one of these numbers to open a business bank account, apply for a loan, or open a line of business credit.
So how do you apply for this tax ID number? In all situations, you’ll need to answer some basic questions about your business and its founding members, including providing their names, addresses, and SSNs. You can apply through a traditional method like over the phone, by mail, or by fax, but it’s in your best interest to apply online. Applying online is ridiculously easy, and you should be able to finish the application in 5 minutes or less. After that, you’ll receive your tax ID via email in under an hour.
5. What Is Indiana’s TID Number?
Your business may also need a TID number in Indiana, which is a different kind of tax ID number. It operates at the state level, serving as Indiana’s version of a tax ID number. It, too, is used for identification and tax accounting purposes, but it’s distinct from the federal tax ID. Most states in the United States have their own kind of state-level tax ID, since they need to account for taxes and keep tabs on how those businesses operate.
You’ll need one of these if you’re going to hire employees in the state of Indiana, if you’re going to sell taxable goods and services in Indiana, or if you plan on owing excise taxes, which apply to regulated goods. The majority of businesses in Indiana will need both a federal tax ID number and an Indiana TID number to operate legally.
6. How to Obtain an Indiana State Tax ID Number
How can your business obtain one of these state-level tax ID numbers? There are a few variable methods, but they aren’t much different from the methods you used to get your federal tax ID. First, you’ll need to have a federal tax ID number in place, so apply for one online if you haven’t already, so you can get yours in less than an hour.
With your federal tax ID number in hand, you can begin the application process. It’s possible to apply with a traditional method, like over the phone or with a paper application, but it’s much better to apply for your Indiana TID online. The online application is easy to access and fill out, and shouldn’t take you more than a few minutes to complete. When you’re done, you’ll receive your state tax ID number in a matter of 4 to 6 weeks.