Do you know if your business needs to have a tax ID number? In Oregon, it’s possible to start one of many different business entities, like a corporation, a limited liability company (LLC), a partnership, a nonprofit organization, or even a sole proprietorship. But no matter what type of business you start, you’ll probably need to take care of some paperwork before you can operate legally, including obtaining your tax ID (EIN) number. This article will teach you how to apply for your tax ID with a method that can return it to you in less than an hour.
Steps to Apply for an Oregon Tax ID (EIN) Number
- Gather the Right Information
- Apply Online for an Oregon Tax ID: The Faster Method
- Apply by Phone, Mail or Fax for Your Oregon Tax ID
- Is a Business ID Number (BIN) the Same as a Tax ID Number?
- Do I Need a Tax ID or Business ID Number (BIN) For My Oregon Business?
- Oregon State Tax ID Number: What It Is and How to Get One
1. Gather the Required Information
A tax ID number is assigned to your business when you register with the government. While there are a few different approaches you can take to achieve this, all of them depend on your ability to provide a few key pieces of information via a tax ID number questionnaire.
Accordingly, it can be advantageous to gather this information in advance. That way, you can complete the application faster and more efficiently. For starters, you’ll need to get the full legal names and complete legal addresses of all your business’s founding members, including you. You’ll also need their social security numbers (SSNs).
2. Apply Online for an Oregon Tax ID: The Faster Method
The fastest and most convenient application method is applying online, though several other methods exist. Most of these methods originated before the internet simplified things, and continue to exist as legacy systems. For example, you could apply with a paper application, through mail or fax, or apply over the phone.
Applying online is available to you 24/7, so you won’t have to wait for business hours to complete the application. You can also apply using any digital device with an internet connection, making it even more convenient. More importantly, the form is easy to navigate and comprehend. If you’ve gathered all the required information from your founding business members, it should only take you a few minutes to finish and submit it.
After submitting your application online, you’ll enjoy a ridiculously fast turnaround time. Most business owners receive a tax ID for their business in less than an hour, via email.
3. Apply by Phone, Mail or Fax for Your Oregon Tax ID
There are several traditional methods you could use to apply for a tax ID number, but none of them are as quick or reliable as the online application method. For example, you could call a live representative during business hours and answer the questionnaire over the phone. You could also complete a paper application by hand, sending it in via fax or traditional mail. These methods are inferior because they tend to be time consuming; you’ll also end up waiting 4 to 6 weeks, instead of a mere hour, like you would with an online application.
4. Is a Business ID Number (BIN) the Same as a Tax ID Number?
The terminology describing tax ID numbers can get confusing, especially for an inexperienced business owner. When you hear that you might need a business ID number (BIN), you might accidentally mistake it for an EIN. So what do all these terms mean?
Let’s start at the top, by describing your federal tax ID number. This is a 9-digit number assigned by the federal government when you register your business, and you might hear it described as an
employer identification number, or EIN. Most of the time, when you hear the simple phrase "tax ID," it’s referring to this number.
You’ll need one of these if your business features multiple founding members, like in a partnership or corporation. You’ll also need one if you’re going to hire employees. Banks and investors often require EINs as well, so you’ll need one to apply for a loan, line of credit, or even something simple like a business bank account.
A BIN is another name for the state-level tax ID number required by Oregon, and it’s a completely separate number.
5. Do I Need a Tax ID or Business ID Number (BIN) For My Oregon Business?
Your Oregon BIN may also be called an Oregon state tax ID number. Most states offer a state-level tax ID number, similar to a federal tax ID number, for state-level functions. In many states, this exists as a form of registry for state-level sales tax, but in Oregon, there is no state-level sales tax. Still, you may be required to have an Oregon BIN.
You’ll need an Oregon BIN if you’re going to hire employees in the state of Oregon, or if you’re going to owe special taxes on regulated goods. Note that while there isn’t a state-level sales tax, you may be required to register for local sales taxes, with your city or county, which may also require an Oregon BIN. Be sure to consult with your local Chamber of Commerce to tell for sure. Most businesses will need both a federal-level tax ID number and an Oregon BIN.
6. Oregon State Tax ID Number: What It Is and How to Get One
If you need to get an Oregon state tax ID number (BIN) for your business, you should know you’ll have a variety of application options, just like you did with your EIN. First, you’ll need to provide your federal tax ID number on the application; if you haven’t gotten yours yet, you’ll need to get one. The best way is to use the online application, so you can receive yours via email in an hour or less.
You can apply for an Oregon state tax ID number through a traditional method, like over the phone, by mail, or by fax, but these tend to be inconvenient, with slower turnaround speeds than the online application. As you can imagine, the online application is superior in almost every way. It’s more accessible and is fast to complete, though you’ll need to wait 4 to 6 weeks to receive your state tax ID number.