Obtaining a Michigan Tax ID (EIN) Number? Find out how to apply online using our simple Michigan Tax ID Application Guide. Be prepared with identifying information of each all partners, even if you own a Corporation, Trust, Non-Profit, Partnership, Estate or multi-member LLC. This article will serve as professional guidance when applying for your official Tax ID (EIN) Number in Michigan.
Steps to Obtain your Tax ID (EIN) Number in Michigan:
- Prepare Required Information
- Apply for a Michigan Tax ID Online
- Apply for a Michigan Tax ID by Phone, Mail or Fax
- How Do You Get a Tax ID Number for your Business?
- What’s the Difference Between a State Tax ID and Federal EIN Number?
- How Do I Get a Michigan State Tax ID Number?
The first step is an easy one, and you can probably cross it off your list in a matter of minutes. The process for getting a tax ID involves answering several questions about you and your business partners, so you’ll need to gather that information to have it on hand.
For starters, you’ll need your full legal name, your address, and your social security number (SSN), as well as this same information for all partners and founding members of your business. If your business is a sole proprietorship or a single-member LLC, yours is the only information required.
You’ll also need to have the legal name of your business prepared.
There are a few avenues you can use to apply for your tax ID, but the general procedure is always the same. You’ll be responsible for filling out an application, answering several questions about you, your partners, and your business. You’ll need to wait for the application to process, then you’ll be provided with a tax ID.
If you’re interested in completing this process and closing the loop as soon as possible, the best route is to apply online. The online application process is simple, and accessible so long as you have an internet connection. If you have all the requisite information gathered, things will move even faster. You should be able to answer all the questions provided in well under an hour. Then, your application will take about an hour to process. When it does, you’ll get an email- instantly- with your tax ID, so you can begin operations in your business.
If you don’t mind waiting a longer time for your tax ID, you can also apply through a more traditional method. You can fill out a similar questionnaire on paper, then send that form in via mail or fax. Or, you can answer the same questions over the phone.
The major drawback to these methods is the wait time. Unlike your online application for a tax ID, which can finish in an hour, these methods come with a wait time of 4 to 6 weeks. There also aren’t any other advantages to consider, so applying online should be your primary choice.
Before your business can begin operations, you’ll almost certainly need to have a tax ID in place. There are some businesses that can get by without one (such as certain sole proprietorships), but because tax ID numbers are so heavily used in the business world, it makes sense to get one as soon as possible.
When your business is ready to get a tax ID, you’ll need to register your business with the federal government. This isn’t a complex or confusing process, but it can seem intimidating to new business owners. Again, the best way to apply for your business’s federal tax ID is to apply online; through this method, you’ll be able to answer questions conveniently online, and hopefully, get your tax ID in less than an hour. Since you probably won’t be able to start generating revenue until you have that tax ID, this is the best method for your business.
The terminology for different tax ID numbers can be confusing, but there are only two numbers you need to worry about. First, there’s the federal tax ID number, sometimes referred to simply as “tax ID,” and sometimes called an employer identification number (EIN). This is necessary for any business that plans on hiring employees, since it’s used to withhold taxes. It’s also used when applying for business licenses and permits, for opening business bank accounts, and for opening lines of business credit. You can think of it as a kind of social security number for your business, rather than you as an individual.
Your Michigan state tax ID number is also a unique identifier, but it’s used for a different set of obligations. You’ll need a Michigan state tax ID if you’re going to hire Michigan employees, if you plan on owing excise taxes in Michigan (for products like alcohol or gasoline, for example), or if you’re going to sell taxable goods and services in the state of Michigan.
It’s likely that you’ll need at least a federal tax ID, and most businesses in Michigan will end up needing both a federal tax ID (EIN) and a Michigan state tax ID.
If you think you’ll need a Michigan state tax ID number, you’ll want to begin the application process as soon as possible. The process is very similar to the one you’ll use to get your federal tax ID, but you won’t get both through the same application. It’s advisable to get your federal tax ID first, then use the same information you used for that process to apply for your Michigan state tax ID.
Like with your EIN, your best bet is to apply for your Michigan state tax ID online; not only is this simpler and more convenient, it’s also a faster method. This application may take a little longer to complete, and it will take a few days to a few weeks to process. When it’s done, you’ll get your Michigan state tax ID via email.