If you’re planning to start a sole proprietorship, partnership, limited liability company (LLC), corporation, or other type of business entity in Ohio, you’ll know there are some legal and regulatory hurdles you’ll have to overcome before you can begin operations. One of the first steps you’ll need to take is getting your federal tax ID number (EIN). Fortunately, once you’re familiar with the process, getting a tax ID number is easy. This article will teach you everything you need to know.
Steps to Obtain a Tax ID (EIN) Number in Ohio
- Prepare Required Information
- Online Ohio Tax ID Application
- Traditional Ohio Tax ID Application Methods
- Is There an Ideal Way to Get a Tax ID Number in Ohio?
- Do You Really Need an Ohio State Tax ID Number?
- Ohio State Tax ID Number: What It Is and How to Get One
To get a tax ID number, you’ll need to register your business with the government, and to do that, you’ll need to fill out an application with various bits of information on your business. It’s often helpful to prepare this information in advance, so you can complete the application and get your tax ID quicker.
To start, you’ll need to get the full legal names and legal addresses of your business’s founding members. In other words, this means you and any partners in your business. Then, you’ll need to get their
social security numbers. With this information in hand, the next stage of the process will go very smoothly.
If you’re interested in getting your business’s tax ID number as quickly and efficiently as possible, it’s a good idea to apply online. There are many methods you could use to apply for a tax ID, but while they all follow the same basic steps, some are inherently more efficient (and more convenient) than others.
No matter which method you pursue, you’ll have to answer some questions about your business and its founding members on an application. These required pieces of information are listed in the preceding section.
If you choose to apply for your tax ID online, you’ll enjoy much higher accessibility and convenience. You won’t have to track down any paperwork; instead, you can fill out the simple, intuitive application using any device with an internet connection, and at any time. If you have the correct information available, you can finish the application in as little as 5 minutes. When done, you should receive your tax ID number in an hour or less, making this by far the fastest application method.
The online application is recommended for all entrepreneurs, regardless of your preferences or circumstances, because it’s universally and objectively better. However, there are some traditional application methods that are available to business owners seeking them. For example, you could answer the application’s questions over the phone, with a live representative. You could also fill out a paper application, then mail it in. There aren’t any significant advantages to these methods. Instead, they all come with at least one glaring weakness: if you use these methods, you’ll need to wait 4 to 6 weeks to receive your tax ID by mail, rather than getting it in an hour with the online application.
If you need to get a tax ID number in the state of Ohio, you might wonder which way is the fastest or the most efficient. Getting a federal tax ID number requires you to register with the federal government, and there are several ways you can accomplish this. In any scenario, you’ll need to fill out a questionnaire with prompts regarding your business and its founding members. However, some mediums are speedier and more accessible than others.
Traditional methods like applying by phone, mail, or fax have been around the longest, but they’re also the weakest methods available. They’re highly inconvenient compared to the online application, and if you use them, you’ll wait 4 to 6 weeks to get your tax ID by mail. The online application, by contrast, is much easier to understand and access. If you’re prepared to respond to the prompts, you can finish the application in 5 minutes, then receive your tax ID by mail in an hour or less.
How can you tell if you need an Ohio state tax ID number?
First, understand that there’s a difference between your federal tax ID number and your Ohio state tax ID number, and your Ohio business will likely require both. Your federal tax ID number is sometimes called an employer identification number, and it’s assigned by the federal government as a unique identifier for your company. You’ll need this if you’re hiring employees, if your business has multiple members, or if you’re going to apply for a financial product, like a business bank account or a loan. You’ll also need one to apply for most business licenses and certificates.
Your Ohio state tax ID is given and regulated by the state government of Ohio. You’ll need one if you’re going to sell taxable goods and services in the state, or if you’ll owe
excise taxes on regulated goods like alcohol. You’ll also need one if you’re going to hire employees in the state of Ohio.
Ohio state tax ID numbers are required of any business that hires employees in Ohio, or sells taxable goods and services in the state. Thankfully, the process to get one is relatively straightforward.
First, you’ll need a federal tax ID number. If you don’t already have one, you’ll need to get one using the online application, since it will only take an hour to process.
With a federal tax ID number (EIN) in hand, you can apply for an Ohio state tax ID number online or with a traditional application method. Similar to your EIN, it’s in your best interest to use the online application. It’s faster, simpler, and more convenient for most business owners. When you’re done with the application, you’ll receive your Ohio state tax ID number in 4 to 6 weeks.