The process to acquire a Tennessee Tax ID (EIN) Number is easier than ever. The creation of the Tennessee Tax ID Application Guide is like having a personal assistant to get you to the point where you have your employer identification number in hand. The Tax ID number is something you will need as long as run an organization and meet pretty general criteria. Receiving the number from the Internal Revenue Service can be done within one-hour with applying online and following the guide.
Steps to Obtain your Tax ID (EIN) Number in Tennessee:
- Prepare Required Information
- Apply for a Tennessee Tax ID Online
- Apply for a Tennessee Tax ID by Phone, Mail or Fax
- How Do You Get a Tax ID Number?
- Do I need a State EIN if I Have a Federal EIN?
- How Do I Get a Tennessee State Tax ID Number?
The application process requires you to have several pieces of information about your business ready. It’s in your best interest to gather this information in advance of beginning your application, so the process can go smoother.
You probably have your own personal information on standby- which includes your full legal name, your legal address, and your social security number (SSN). You’ll also need these pieces of information for any other members involved in your business- such as the other partners in your partnership, LLC, or corporation. And because this is a process that formally registers and officially recognizes your business, you’ll need to have your legal business name as well.
There are multiple possible methods that will allow you to get your tax ID. However, not all these methods are equal. Some are more labor intensive than others, and some are much faster and easier. If you want the most convenient and the most approachable method, you’ll want to apply for your tax ID online. The online application process is convenient, since you’ll only need an internet connection and a computer to complete it. It’s also ridiculously fast; if you already have your key information gathered, you should be able to complete your online application in no time.
Your application should process in less than an hour, at which point you’ll be emailed your tax ID. Because you can, in most cases, get your tax ID in less than a day, this is the preferred method for anyone who wants to start their business as soon as possible.
There are, however, other methods of application to consider. If you prefer a more traditional process, you can apply over the phone, by mail, or by fax. No matter which of these methods you choose, you’ll be answering the same types of questions in a similar application process; the difference is, you’ll either be answering those questions over the phone or you’ll be answering them on a sheet of paper. Then, you’ll be forced to endure a much longer waiting period for your application to process; these traditional methods can take up to 4 to 6 weeks, instead of a single hour.
Most businesses will need to get a tax ID number, also referred to as an employer identification number (EIN). This serves several purposes, functioning as a unique identifier for your business (similar to the role your social security number serves), allowing you to apply for business bank accounts, enabling you to withhold taxes from your employees, and allowing you to apply for business licenses and permits. In other words, it’s both a legal and a practical requirement if your business plans on hiring employees, establishing credit, or forming partnerships.
That means you can’t start your business without a tax ID, and you can’t get a tax ID unless you apply for one. Fortunately, the federal government makes it relatively easy to apply for your tax ID. As long as you have the key points of information listed above, you can fill out an application for your business online, and officially register your business, getting your tax ID in an hour (or less).
There are different types of tax ID numbers available, which can be confusing, especially to new business owners. Though the names of your federal tax ID/EIN and your state tax ID/EIN sound similar, they’re actually two distinct numbers that serve two distinct purposes. Some businesses may be able to get by with just a federal EIN, or FEIN, while others will need both a federal ID number and a Tennessee state tax ID number.
Your Tennessee state tax ID number is necessary if you’re going to hire employees in Tennessee. You’ll also use this number to register your business for state-level taxes, including taxes on any taxable goods and services in the state of Tennessee, as well as excise taxes.
If you’re going to hire employees in the state of Tennessee, you’ll need both a federal EIN and a Tennessee state tax ID. The only scenarios in which your business doesn’t require either one is if your business is a sole proprietorship (or single-member LLC) that isn’t going to hire employees, sell taxable goods and services in Tennessee, or open a business bank account. These situations are rare, as most Tennessee businesses will need both numbers.
After you get a federal tax ID number, if you also need a Tennessee state tax ID number, you’ll be pleased to know you can follow a very similar process to get it. Just like getting a federal EIN registers your business with the federal government, your Tennessee state tax ID application will register your business with the Tennessee state government.
You can apply for your Tennessee state tax ID online, just like you did with your federal tax ID. It’s the most convenient and fastest way to get it, though the process can take a little longer. You shouldn’t have any trouble answering the questions related to your business and your partners, so filling out the application should only take a few minutes. After that, it may take a few days to a few weeks for your application to finish processing, and to get your Tennessee state tax ID via email.