Obtaining an Alaska Tax ID (EIN) Number? Find out how to apply online using our simple Alaska 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 (or FEIN) Number in Alaska.
Steps to Obtain your Tax ID (EIN) Number in Alaska:
- Prepare Required Information
- Apply for an Alaska Tax ID Online
- Apply for an Alaska Tax ID by Phone, Mail or Fax
- Is an Entity Number the Same as an EIN?
- Is the Alaska Business License the Same as a Tax ID?
- How Do I Get an Alaska State Tax ID Number?
In the interest of making the process as quick and smooth as possible, it’s a good idea to gather all the information you’ll need for the tax ID application before you start filling it out. That way, you won’t have to stop halfway through to hunt down these details.
You’ll need details on all your business’s founding members, including yourself and any business partners you have. Take note of their full legal names, their legal addresses, and their social security numbers (SSNs). And because this application is going to register your business with the government, it’s also important to decide on a formal business name (if you haven’t already).
You can apply for your tax ID number with one of several different methods, so you should be able to find a method that works for you. It’s still possible to apply for your tax ID by phone, mail, or fax, but these aren’t usually worth your time. Instead, it’s better to apply for your tax ID online.
Applying online is the universally better application method. This is partially due to the sheer convenience of applying online. The online application is available for anyone, on any device with an internet connection. On top of that, the application is easy to understand; as long as you’ve gathered the right details on your business in advance, it should only take you 5 minutes to fill out.
From there, you should receive your tax ID via email in an hour or less. This fast turnaround is the key advantage of applying online, since it allows you to start your business faster than with any other method.
Even though applying online is superior, there are other methods you can use to apply for your tax ID. Traditional methods force you to fill out a paper application, or give your information over the phone. In all these methods, you’ll be answering the same questions you’d face in the online application, just in a less convenient format. For example, if you fill out a paper application, you’ll have to mail it in via traditional mail or fax it. And the phone interview will similarly take more time out of your day.
The biggest weakness of these methods is the time it takes to receive your tax ID; it can take up to 4 to 6 weeks to obtain it via mail when you send in the application.
The terminology for ID numbers can get confusing, since there are different numbers you can get for your Alaska business. Let’s start by explaining what’s often referred to as a general “tax ID.” This is your federal tax ID number, but it’s also referred to as an employer identification number, or EIN for short. Occasionally, you’ll also hear it referred to as a federal EIN, or FEIN. This is a unique ID number for your business that’s assigned to you when you register your business with the federal government. You’ll need this number if you’re going to hire employees, if your business involves more than one founding partner, if you’re going to apply for a business bank account or business credit, or if you’re going to apply for a business license or permit.
In Alaska, your Alaska entity number is similar to an EIN, but it’s a distinct ID number. It’s assigned to all Alaska businesses, serving a similar role to the state tax ID number that most other states have. This number will register your business with the state government of Alaska, though unlike other state tax ID numbers, it isn’t used for sales tax registration, as there is no state-level sales tax in Alaska.
In Alaska, you’ll need to get a business license to operate legally. This general business license applies both to standalone corporate structures, like LLCs and corporations, and sole proprietorships. The business license is a unique registry, but it’s not the same as a tax ID number, and you won’t get one automatically when you apply for a tax ID or Alaska entity number.
However, to get an Alaska business license, you’ll need to have both your federal tax ID and your Alaska entity number. Note that you may also need one or more of several other licenses, permits, and certifications; these are often regulated at a local level, so reach out to your local Chamber of Commerce to see which forms of documentation your business will need.
Alaska calls its state tax ID number an Alaska entity number, though it serves a slightly different purpose than the state tax ID numbers of other states. To get one, you’ll first need to have a federal tax ID number (EIN) in place. You can apply for this number online, and receive it in less than an hour, allowing you to start your business faster.
Once you have your EIN, you can apply for your Alaska entity number. Like with your federal tax ID, you can apply for this number online, through the mail, by fax, or over the phone, but applying online is much faster and more convenient. Even if you apply online, you may be faced with a significant wait time, however; it can take up to 4 to 6 weeks to receive your Alaska entity number.