How to Obtain a Tax Identification Number

If you are planning to start a business, it’s quite likely you are going to need to apply for a federal Tax Identification Number, called an Employer Identification Number, or an EIN.

This 9-digit number is issued for free by the IRS and is used by businesses for federal tax purposes. It will also be used for reporting employee wage and salary information.

Additionally, in most cases you will need an EIN to open a business bank account, apply for a business credit card, and to apply for loans. Your EIN will also be used when filing for any necessary business licenses and permits.

To determine if you need and EIN and to apply for it online, go to ein.irs.gov and follow the instructions. You will need information such as your business name, mailing address, Social Security Number, and details about your business structure. The EIN will be available immediately upon completion of the online form.

Once you have an EIN, there might be occasions when you will need replace or change it if the name or address of your business changes, or if there is a change in ownership. You’ll be able to find more information about that by visiting irs.gov and searching for ‘Do you need a new EIN?’

In addition to your federal EIN, you might also need to get a state tax ID number, so be sure to check with your state’s department of revenue.