Applying for your tax ID number doesn’t have to be confusing. If you’re interested in learning more about the process, and how to handle it efficiently, keep reading this guide. Most types of organizations will end up needing a tax ID number, also known as an EIN, including partnerships, nonprofits, corporations, and limited liability companies (LLCs). Fortunately, if you know what you’re doing, it doesn’t take long to get the tax ID you need. This article will teach you everything you need to know for your Tennessee business.
Steps to Applying for a Tennessee Tax ID (EIN) Number
- Prerequisite Information for Your Tax ID Application
- The Tennessee Tax ID Online Application Method
- Traditional Methods to Apply for a Tennessee Tax ID: Phone, Mail or Fax
- Applying for Your Tax ID Number
- Are Both a Federal EIN and State EIN Necessary for Tennessee Businesses?
- Tennessee State Tax ID Number: What It Is and How to Get One
1. Prerequisite Information for Your Tax ID Application
You get a tax ID number for your business when you register with the government, but to register, you’ll need to fill out an application with some basic information about your company and the people founding it. For starters, you’ll need to provide the full legal names of any founding members of the business, which translates to you and all your partners. You’ll also need to provide their legal addresses, as well as their social security numbers (SSNs). If you have this information proactively prepared, it should be quick and easy to finish the application.
2. The Tennessee Tax ID Online Application Method
If your business needs an EIN, you’ll have several options for how to apply. Regardless of which approach you choose, you’ll be following most of the same steps; you’ll fill out a questionnaire about your business and your partners, submit it and register your business with the government, then receive a tax ID via mail or email.
However, some methods are much faster than others, and if you’re interested in getting your Tennessee business started as smoothly and as quickly as possible, you’ll want to take advantage of them. Traditional methods like phone, mail, and fax have been around for many years, but they’re all outclassed by the convenience and speed of the online application method.
When you apply online, you can use practically any internet-connected device. The form is easy to navigate and understand, and if you’ve gathered all the important information on your business, it should only take you 5 minutes to successfully complete. After you submit the application, you’ll receive a tax ID number in an hour or less.
3. Traditional Methods to Apply for a Tennessee Tax ID: Phone, Mail or Fax
All Tennessee business owners are encouraged to use the online application method when trying to obtain a tax ID number. However, there are some traditional application methods available for entrepreneurs who are interested in them. For example, you can apply over the phone by answering the questionnaire prompts with a live representative. You can also fill out a paper application, then mail or fax it in. These methods tend to be more complicated to pull off, but more importantly, they take longer. On average, business owners wait 4 to 6 weeks to get a tax ID by mail through these methods.
4. Applying for Your Tax ID Number
If you want to get a tax ID number, you’ll have to apply for one. This process will register your business with the federal government. While there are several methods you can use to apply, you’ll always be following the same basic outline. No matter what, you’ll need to provide some key pieces of information on your business’s founding members, including their full legal names, addresses, and social security numbers (SSNs). Once provided, you’ll submit this form, then you’ll need to wait to receive your tax ID number.
It’s way more efficient to apply for your tax ID number online than it is to use any other method. You can access the online application using any device with an internet connection, and fill out the form quicker than with traditional methods. In fact, most people can finish it in just 5 minutes. When you submit the online application, you’ll generally receive your tax ID number in less than an hour, which is much faster than the 4 to 6 week turnaround time of traditional methods.
5. Are Both a Federal EIN and State EIN Necessary for Tennessee Businesses?
When people use the phrase "tax ID," they’re typically referring to a federal tax ID number. This number can also sometimes be called an employer identification number, or EIN. You’ll need one of these if you’re hiring employees, or if your business will have multiple members from the start. Most banks require a tax ID number for the companies they do business with, which means you’ll need one if you’re going to apply for a line of credit or business bank account, or if you’re going to get a loan.
Your Tennessee state tax ID number may sound similar, but it’s a different number that applies at the state level. You’ll need one of these to register your business for sales taxes in Tennessee, so you’ll definitely need one if you’re selling taxable goods and services. You’ll also need one if you plan on hiring employees in the state of Tennessee.
The majority of Tennessee businesses will need both a federal-level EIN and a Tennessee state tax ID number.
6. Tennessee State Tax ID Number: What It Is and How to Get One
Any business hiring Tennessee employees, selling taxable goods and services, or selling products associated with excise taxes is going to need a Tennessee state tax ID number. If you want to get one, you’ll need to apply for one, and register your business with the state government of Tennessee. First, before you get started, you’ll need a federal tax ID number, which you can get in just an hour if you use the online application method.
With an EIN in hand, you can choose an application method for your Tennessee state tax ID number. Traditional methods exist, like applying with a paper application or over the phone, but it’s much better to apply online. The online application is simpler and faster; with it, you can get your state tax ID in 4 to 6 weeks.