How To Get An EIN (Tax ID) Number In Delaware
U.S. News and World Reports named Delaware as the sixth best state to start a business due to its low costs and high returns on investments. However, before you start reaping the rewards of doing business in this great state, you need to get a few essentials in order. In particular, you need to obtain a Delaware EIN number for federal taxes and a Delaware tax ID number for state taxes.
A tax ID number is a unique number that identifies your business on tax and banking forms, and it’s an essential for new business owners. You won’t be able to hire employees, open bank accounts, or handle other tax or financial issues until you get an EIN. To help you out, this guide covers the process of applying for an EIN in Delaware.
How To Apply For A Tax ID Number In Delaware
To apply for an EIN number Delaware business owners can use an online application, or they can apply on paper through mail or fax. Both applications require the same details, but they take vastly different amounts of time. If you apply online, you can get your number the same day, but if you apply through the mail, you should expect to wait six to eight weeks. Fax takes between a week and six weeks.
Wondering how to apply? Take a look at the process.
Prepare The Required Information
To prepare to get an EIN number Delaware business owners need the gather the following details about their business:
● Business name, address, and phone number.
● Name of a responsible party and their Social Security Number or other tax ID.
● The type of entity such as sole proprietorship or partnership.
● Reason for applying for an EIN.
● Anticipated number of employees over the next 12 months.
● First date wages paid.
● Date business acquired.
● Your principal line of merchandise or services.
● Is your business an LLC? If so, the number of members.
● If an LLC, was your business organized in the United States?
● If a corporation, where was it incorporated?
Note that you need to include the legal and doing-business-as name for your business. This typically comes into play for sole proprietors who use their personal name as the business’s legal name and a different name as their trade name. Also, note that the responsible party must be a person. If you have a partnership or corporation where one of the owners is another partnership or corporation, they cannot be the responsible entity. It must be a human.
Once you have these details, you can start the application. If you want to apply online, gather the details first so that you can complete the application in a single setting. With a paper application, you can gather the details and fill out the form as you go.
Apply Online
Applying for a Delaware EIN online is fast and easy. You can complete the application on your own time from anywhere that you have an internet connection. The only caveat is that you can only obtain one EIN per day online. So if you have multiple endeavors, you may need to spread out the process.
Submit Your Application Via Mail
To obtain a mailed EIN number Delaware residents need to file a paper copy of Form SS-4. If you want to speed up the process, you can fax in the paper copy, and then, you can request to have the number fixed or mailed back to you.
Frequently Asked Questions
To give you more insights on the EIN application process. Here are answers to some frequently asked questions.
An EIN or Delaware tax id number is a number that you use to identify your business on tax forms and bank documents. You need these numbers to file tax forms for federal and state payroll taxes, federal excise taxes, sales taxes, and other taxes. You also need an EIN if you file informational returns such as partnership returns.
No, the Delaware Secretary of State does not issue EINs. To get an EIN number Delaware residents must contact the IRS or work with a professional.
No, these numbers are not the same. A Delaware EIN number is a federally issued number that appears on federal tax forms. It’s also used for banking purposes. A Delaware tax id number is for state tax forms.