Do you need a tax ID number for your Indiana business? Do you know how to tell for sure?
There are many types of businesses you can create in Indiana, including sole proprietorships, partnerships, limited liability companies (LLCs), corporations, and nonprofit organizations, but all of them could end up needing a tax ID number (EIN).
This article will teach you the basics of why Indiana businesses need tax ID numbers, and how to get one if you need one in the fastest, most convenient way.
Steps to Getting a Tax ID (EIN) Number in Indiana
- Required Information for Tax ID Applications
- Indiana Tax ID: Apply Online for Faster Turnaround
- Indiana Tax ID: Apply by Phone, Mail or Fax
- The Quickest Way to Get Your Tax ID Number
- What Is Indiana’s TID Number?
- Indiana State Tax ID Number: What It Is and How to Get One
To receive a tax ID number, you’ll need to register with the federal government. You’ll do this by filling out a questionnaire with prompts about your business and its founding members; though there are several available application methods, this basic formula applies to all of them.
You can decrease the time it takes to complete this application by gathering all the necessary information in advance. You’ll need to provide the full legal names of all your founding business members (including you) as well as their legal addresses. You’ll also need their social security numbers (SSNs). If you have all these pieces of information, you can finish the application in just 5 minutes.
If you’re interested in getting a tax ID number (EIN) in the fastest possible way, there’s only one real option: the online application method.
No matter what, you’ll be completing the same basic application, responding to the same prompts and providing the same information. However, the online application is much more convenient, and can earn you a tax ID much faster than any traditional method.
For example, the online application can be completed at any time, using any device with an internet connection. This immediately makes it more convenient than, say, answering a questionnaire over the phone. If you have all the right information in front of you, you can complete the online application in 5 minutes or less.
Once completed, you’ll receive your tax ID number over email in an hour or less. This is a ridiculously fast turnaround time compared to the other available application methods.
Before the prominence of the online tax ID number application, there were several traditional methods available to obtain a tax ID number. These methods are still available today, but they’ve been handily outclassed by the online application. You could, for instance, apply over the phone by talking with a live representative. You could also mail or fax in a paper application. However, these methods tend to be less convenient, making you jump through hoops to answer the questionnaire. They also tend to take 4 to 6 weeks, as opposed to a single hour, for you to receive your tax ID by mail.
If you’re interested in starting your business and generating revenue as soon as humanly possible, you’ll need to get a tax ID number in hand as quickly as you can. A tax ID is a general term for your federal tax ID number. This number is also known as an employer identification number, or EIN.
You’ll need one of these if your business has multiple members, or if you’re going to hire employees. You’ll also need one for most forms of paperwork, especially in a financial context. For example, you’ll need one to apply for a business bank account, a loan, or a floating line of credit. You may also need one to apply for local permits, licenses, and certifications.
If you’re interested in getting your EIN as quickly as possible, there’s only one serious option: applying online. You can apply online anywhere, using any internet-connected device, and if you come prepared, you can finish the application in just 5 minutes. From there, you should be able to receive your tax ID number via email in less than an hour. If you use any other method, you may end up waiting up to 4 to 6 weeks.
Your federal tax ID number is assigned to businesses when they register with the federal government, and of course, they apply at the federal level. However, most states in the United States also distribute state-level tax ID numbers, for state-level functions (typically related to taxes and paperwork).
Indiana has a state-level tax ID number commonly abbreviated as TID. While similar in nature and name to your federal tax ID number, understand that these are different numbers, and you may need both to operate legally in Indiana.
You’ll need an Indiana state tax ID number for several reasons; for example, you’ll need one to hire Indiana employees, to sell taxable goods and services in the state, and to manage excise taxes, which will apply to any regulated goods you sell, like alcohol, tobacco, or gasoline.
If you’re confused about which tax ID numbers you need, you can usually count on needing both a federal tax ID number and an Indiana state tax ID number. If you need an Indiana state tax ID number, you’ll definitely need a federal tax ID number to complete the application. If you haven’t yet gotten your federal tax ID number, make sure you use the online application. That way, you can get yours in less than an hour via email.
You’ll need to fill out a questionnaire to get your Indiana state tax ID number, much like the one you completed for your federal tax ID. Again, you’ll have your choice of using a traditional method like phone, mail, or fax, or applying online. Applying for your Indiana TID number online is much faster and more convenient, though it will still take longer than your federal tax ID number. Most business owners get theirs in 4 to 6 weeks.