Texas Tax ID (EIN) Number Application | How to Apply Online
Trying to obtain your Tax ID (EIN) Number in Texas? This short Texas Tax ID Application Guide will walk you through the basic steps you need to follow to apply for your Tax ID (EIN) Number in the state of Texas. Whether you own a Partnership, multi-member LLC, Corporation, Non-Profit, Trust or Estate, this guide will help you learn what you need to know to obtain your official IRS Tax ID Number within minutes.
Steps to Obtain your Tax ID (EIN) Number in Texas:
- Prepare Required Information
- Apply for a Texas Tax ID Online
- Apply for a Texas Tax ID by Phone, Mail or Fax
- How Do You Get a Tax ID Number in Texas?
- Do I Need a Texas Tax ID Number?
- How Do I Get a Texas State Tax ID Number?
Before you can get your federal tax ID number or Texas state tax ID number, you’ll need to have the following information available:
- Names, addresses, and SSNs. You’ll need to provide your full legal name, your address, and your social security number if you’re an owner of the business. You’ll also need the names, addresses, and SSNs of all your partners and/or founding members.
- Your business name. Because you’ll be formally registering your business, you’ll also need to have your business name decided on (and in place).
- Other paperwork. It’s not strictly necessary to have all your other paperwork in place to get a federal tax ID, but it can be helpful. Consider getting your business plan, as well as a partnership agreement and/or articles of incorporation in place before moving forward.
When you’re ready to apply for a Texas tax ID (either a federal tax ID or a Texas state tax ID), you can proceed in one of two ways: an online application or an offline application.
If you decide to apply online, the process is simple. You’ll need to provide the few pieces of information we listed above, and respond to a few simple questions about you and your business. Then, your application will be processed in the background, and when complete, you’ll receive an email with your tax ID (usually within an hour).
For eager entrepreneurs who want to get their businesses up and running as soon as possible, this is the ideal option. You don’t have to go anywhere or mail anything. You’ll get your tax ID in an hour or less, and there aren’t any significant downsides to speak of.
Applying for a Texas Tax ID online isn’t your only choice. If you’re so inclined, you can also apply for a tax ID via phone, mail, or fax. In some ways, the process is similar; you’ll still be answering the same types of questions, except this time you’ll be doing it on paper or over the phone instead of online. After you send in your paperwork, the two processes diverge. While an online application can be processed and completed in an hour or less, an offline application frequently takes up to 4 to 6 weeks to process and is less than ideal if you’re trying to start a business as quickly as possible.
The process for getting a tax ID number in Texas depends on which tax ID you’re trying to get. There are actually two tax ID numbers appropriate for Texas businessesâ€“one that applies on the federal level, and one that applies on the state level.
Your federal tax ID number, sometimes called an employer identification number (EIN), is a unique, nine-digit number assigned to your company when you register it with the federal government. It’s used for a variety of purposes, including withholding federal taxes from your payroll, applying for new lines of credit and business bank accounts, and applying for licenses and permits.
Your state tax ID number is also a unique identifying number, but it’s issued at the state level in Texas. Your Texas state tax ID is used to register your business at the state level, for withholding state-level taxes from your payroll, for registering for sales and excise taxes, and applying for permits and licenses.
The easiest way to get a tax ID number (EIN) is by applying online. This will save you time and struggle of dealing with the IRS directly.
The question then becomes, is a Texas tax ID number really necessary for your business?
You’ll need a Texas state tax ID if you’re going to hire an employee in Texas, if you know you’re going to owe sales taxes on goods and services sold in the state, or if you’re going to owe excise taxes. Most businesses in Texas will also need a federal tax ID number. You’ll definitely need a federal tax ID number if you’re running a business with multiple people, such as a partnership, an LLC with multiple members, or a corporation. You’ll also need a federal tax ID if you’re hiring employees, or if you’re going to apply for a business bank account or line of credit. Most businesses end up needing a federal tax ID.
Remember, there are a few different ways you can get a federal tax ID number or Texas state tax ID number, but the easiest way is to apply online. The process for both ID numbers is similar, but you’ll need to file two separate applications to get those numbers.
Texas is one of the most populated states in the country, and its population is still growing. It’s projected to reach more than 40 million people within the next 25 years, and is home to some of the biggest metropolitan areas in the United States (including Dallas, Austin, and Houston) making it one of the best destinations for new entrepreneurs.
Currently, there are more than 2.6 million small businesses in Texas, thanks to the state’s welcoming environment for entrepreneurs. The corporate tax rate for most businesses in the state is a mere 1 percent, making it one of the lowest (and therefore most attractive) rates in the nation.
But before you can start your business and begin generating revenue, you’ll need to take care of a few formalitiesâ€“including registering your business with the federal government and getting your federal tax ID number.