Are you interested in starting an Oklahoma business? Before you can begin, you’ll likely need to get a tax ID number almost immediately. There are many types of businesses you could feasibly start in Oklahoma, including partnerships, sole proprietorships, limited liability companies (LLCs), nonprofits, and corporations, but all of them need to file some paperwork before they can begin operations. In this guide, you’ll learn the basics on how tax IDs work, why you need one, and how to get one as quickly as possible.
Steps to Applying for an Oklahoma Tax ID (EIN) Number
- Required Information for Your Tax ID Application
- Apply for an Oklahoma Tax ID Online
- Apply for an Oklahoma Tax ID by Phone, Mail or Fax
- Does Your Oklahoma Business Need a Tax ID Number?
- What Is an Oklahoma Sales Tax ID Number?
- Oklahoma State Tax ID Number: What It Is and How to Get One
Getting a tax ID isn’t hard. There are several distinct methods you could use, but they all follow a similar, high-level formula. No matter what, you’ll follow a process that forces you to answer some important questions about your business and its founding members; once you provide this information, you can register with the government and get your tax ID.
Fortunately, you won’t need much information. You’ll need to provide the full legal names and legal addresses of your business’s founding members. You’ll also need to provide their social security numbers (SSNs). Have these ready when you begin the application.
Most methods for applying for your tax ID existed decades ago, and those methods still exist today. However, they’ve all been outclassed by the emergence of the internet, and with it, the online application.
The online tax ID application is superior to any traditional method, and for several reasons. To begin, it’s much more convenient and accessible even to amateur entrepreneurs. So long as you have a digital device with an internet connection, you can pull up the form. It’s also intuitive and easy to follow. If you have the requisite information on your business’s founding members, it should only take you 5 minutes to complete.
After you’re done with the application, you’ll need to wait to receive your tax ID number. If you use the online application, you’ll only need to wait an hour. After that, you should get your tax ID via email. Traditional methods, by contrast, can have you waiting up to 4 to 6 weeks to get your tax ID via traditional mail.
Though the online application is recommended for Oklahoma business owners, it’s also possible to apply for your tax ID number with one of the traditional methods. If you apply by phone, you’ll talk to a live representative, answering the same questions about your business. If you apply via mail or fax, you’ll first need to find and fill out a paper form. These methods will get you the same tax ID number, and all register your business with the government, but they’re inconvenient and time consuming. Most business owners end up waiting 4 to 6 weeks if they use these methods.
You may wonder if your business needs a tax ID number. This is a valid question, since not all businesses will be legally required to have one.
First, understand that there are different types of tax ID number for you to consider. The most common type of tax ID is often referred to generally as a "tax ID." This is the federal tax ID number, also called an employer identification number or EIN. It applies at the federal level, and is required of any business that involves multiple partners, and any business that hires employees. You’ll also need to have one for most financial applications; for example, banks will require you to have one to apply for business bank accounts, business loans, and lines of credit.
Even if you don’t legally need a federal tax ID number, you may wish to have one to make filling out paperwork easier. For example, you can use this in place of your personal social security number on most business-related applications and forms.
You may also need a state-level tax ID number, sometimes referred to as a sales tax number.
Oklahoma has a state-level tax ID number, which your Oklahoma business may need in addition to its federal tax ID number. Though similar in name, this number serves a distinct purpose. You may also hear it referred to as an Oklahoma sales tax number, due to its association with sales tax.
This is a unique number assigned to your business, not unlike your federal tax ID number. However, it’s used for tax-related and logistical purposes at the state level. To get one, you’ll need to register with the state government of Oklahoma.
Do all businesses need this number? Most Oklahoma businesses will need both a federal tax ID number and Oklahoma state tax ID number. You’ll need this number if you’re going to hire employees in the state of Oklahoma, if you’re selling taxable goods and services in the state, or if you’re going to owe excise taxes. These special taxes apply to some regulated goods.
To get a state tax ID number, you’ll first need to have a federal tax ID number. You can get this in less than an hour if you apply online. Accordingly, all businesses that need an Oklahoma state tax ID number will, by default, need a federal tax ID number.
Once you have this number, you’ll follow a similar series of steps to get your Oklahoma state tax ID number. You’ll provide similar pieces of information on your business and its founding members, and can choose one of several different application methods. Traditional methods, like applying by mail, are still available, but it’s much better to apply for your Oklahoma state tax ID number online.
The online application for your Oklahoma state tax ID number is faster and more convenient, though it may take more time for this application to process than your federal tax ID application. Expect a 4 to 6 week turnaround time.