Do you know if your Louisiana business needs a tax ID (EIN) number? How can you be sure. There are many types of businesses you can start in Louisiana, from corporations and limited liability companies (LLCs), to sole proprietorships and nonprofits. Any of these businesses, including those obtaining a tax id in California or Washington, could feasibly need a tax ID number, depending on how they operate, and some of them always require a tax ID number. This article will teach you the basics of tax ID numbers, including which circumstances require you to have one, and the best application methods to receive your tax ID quickly and efficiently.
Steps to Getting a Tax ID (EIN) Number in Louisiana
- Prepare Required Information
- Apply for a Louisiana Tax ID Online
- Apply for a Louisiana Tax ID by Phone, Mail or Fax
- Is a Louisiana State Tax ID Different Than a Federal Tax ID?
- Do All Entrepreneurs Need to Get a Federal EIN Number?
- Louisiana State Tax ID Number: What It Is and How to Get One
Tax ID numbers are assigned to businesses when they register with the government. Accordingly, you’ll need to submit an application with some personal information before you can receive a tax ID. There are several different application methods available to you, but most of them follow the same basic process; you’ll answer a few questions about your business’s founding members, submit the application, then wait to receive your tax ID. This process goes faster if you have all the required information when you’re ready to begin the application. You’ll need to talk to your partners and gather their full legal names, legal addresses, and social security numbers (SSNs).
While there are several available methods to apply for your tax ID number, some methods are objectively superior to the others. Namely, the online application method outclasses all other application methods in nearly all conceivable ways.
For starters, the online application is available 24/7, and from any device that features an internet connection. This already makes it more convenient and more accessible than most methods that were available before the internet. The form is straightforward and easy even for amateurs to understand, as well, so if you’ve gathered all the information you need, you should be able to complete it in 5 minutes or less. After submitting your finished application, you’ll receive your tax ID number in an hour or less. Compared to the 4 to 6 weeks you’ll have to wait by using a traditional method, this is incredibly fast.
Before the internet revolutionized tax ID number applications, you’d have to use a traditional method to apply for your tax ID number. These methods are still available, though they are still outclassed by the online application.
For example, you could find a paper application and mail or fax it in. You could also talk to a representative over the phone, providing personal details of your business’s founding members in a kind of interview. These methods are slower and less convenient, but most importantly, they leave you waiting for an extended period of time. Instead of getting your tax ID in an hour, it will take 4 to 6 weeks.
You might wonder whether your federal tax ID number is the same as a Louisiana state tax ID number. This is the subject of much confusion, but once you learn the difference between these tax ID numbers, it will make much more sense.
Your federal tax ID number is usually what people are referencing if they mention a general "tax ID." This is a unique, 9-digit number assigned by the federal government. This is also called an employer identification number, or EIN, and it’s used for a variety of purposes, including federal taxes, financial purposes, and filling out various types of paperwork.
By contrast, your Louisiana state tax ID number applies at the state level. It’s a wholly different tax ID number, though it serves some similar purposes. Most Louisiana businesses will need to have both a federal tax ID number (EIN) and a Louisiana state tax ID number.
Federal tax ID numbers,
also called EINs, are common, since most businesses in the United States will need one to operate legally. You’ll need to have this 9-digit, unique number if your business has multiple members, like if it’s a corporation, a partnership, or a multi-member LLC. You’ll also need one if you’re going to hire employees (hence, why it’s called an "employer identification number"). Most banks and investors want to see this number as well, so you can count on needing one if you’re going to open a business bank account, apply for a loan, or try to start a line of credit for your business.
If you need a business license, permit, or other kind of certification, you’ll also need to provide a federal tax ID number. Even if you aren’t formally required to have one, it can still be beneficial to get an EIN; you can use it on almost any application or form in place of a personal social security number (SSN). In short, nearly all business owners will need one or want to have one.
Remember, a Louisiana state tax ID number is different than a federal tax ID number, serving separate purposes at the state level, rather than the federal level. You’ll need one under several conditions, like if you’ll owe excise taxes on certain regulated products, if you’re selling taxable goods and services in the state, or if you’re going to hire employees in the state of Louisiana.
How do you get one? First, you’ll need to have a federal tax ID number for your business. If you haven’t gotten one yet, you’ll be glad to know you can get it in less than an hour if you use the online application. Once you have this 9-digit number, you can provide it on your Louisiana state tax ID number application. You can access this application on paper or over the phone, but it’s much better to apply for your Louisiana state tax ID number online. You should receive your state tax ID in 4 to 6 weeks.