How To Get An EIN (Tax ID) Number In New York
New York’s $1.7 trillion-dollar economy is bigger than all but 10 countries in the world. Its economy is just slightly larger than Canada’s. That means there’s a vast amount of potential for new businesses in this state. It offers a highly educated workforce, cultural resources, and lots of capital, but unfortunately, there’s also a lot of red tape for businesses in this state.
To start to meet the tax and regulatory requirements of your business, you will need a federal Employer Identification Number (EIN) from the IRS and a New York tax ID number from the state. To help you out, this guide explains how to apply for an EIN online and through the mail. Then, it answers questions about the difference between an EIN and a state tax ID.
How To Apply For A Tax ID Number In New York
Applying for a New York EIN number may be easier than you think. The basic steps include prepping the info for the application, completing the application, submitting the application, and waiting for a number. With an online application, the wait is often just a few minutes, and with a mailed application, you should give the process several weeks. Here’s a breakdown of the steps involved in getting an EIN.
Prepare The Required Information
When applying for an EIN number New York business owners need the following details:
● Business basics such as name, type of entity, principal line of business, and date/location of LLC formation or incorporation.
● Information about workers such as anticipated number of employees, number of agricultural or household employees if applicable, and date of first wages paid.
● The name of a responsible party who can make financial decisions for the business — typically, this needs to be someone who owns part of the business.
You also must note why you’re applying for an EIN. Common reasons include hiring your first employee, opening a new business, buying an existing business, changing the structure of your business, or banking purposes.
Note that businesses aren’t the only entities that need this number. New Yorkers may also need EINs for estates, trusts, non-profits, and other types of entities. For these entities, the EIN application will ask you about the details noted above, and you should simply select the answers that describe your situation the most accurately.
Apply Online
If they apply online for an EIN number New York residents will get the fastest response. The online application generally only takes about half an hour or less. You just need a stable internet connection and the details noted above. Generally, once you complete the application, you should get your number almost immediately.
Submit Your Application Via Mail
If you prefer to take care of business through the mail, you should select this option to complete your EIN. It’s more time-consuming than applying online, but if it’s more comfortable for you, that’s okay. Simply print out Form SS-4. Then, complete it using the information listed above. Finally, mail in the form and wait for a response. You should have your EIN within four to six weeks.
Frequently Asked Questions
The rules about tax ID numbers can be a bit complicated. The differences between state and federal numbers are also confusing. Here are answers to FAQs to point you in the right direction.
A tax ID number identifies your business on tax and banking forms. An EIN is a specific type of tax ID issued by the federal government. Almost all businesses in this state need a New York EIN number.
No, the Secretary of State doesn’t issue EINs. This office helps with other business formation activities such as forming an LLC or incorporating your business. To get an EIN number New York residents must reach out to the federal government, not a state entity.
An EIN and a New York tax ID number are both unique numbers that identify your business on tax and banking forms. The EIN is for federal tax forms and bank documents, while the state ID is for state tax forms. Often, you may have multiple state IDs.