How To Get An EIN (Tax ID) Number In Alaska
The land of the frozen sun doesn’t just offer breathtaking scenery and chance encounters with moose. It also boasts a median household income that’s higher than the rest of the nation, making it a lucrative place to start a business. Thinking about launching a new business in Alaska? Considering buying an existing business? Getting ready to hire your first employee?
If you’ve said yes to any of these questions, one of the first things you will need is an Alaska EIN number. To help you out, this guide outlines how to get an EIN for your Alaska business. It also explains when you need this number, and it looks at the differences between a federal employer identification number (EIN) and an Alaska tax ID number.
How To Apply For A Tax ID Number In Alaska
To apply for an EIN number Alaska business owners should first determine if they need this number. Here are the main reasons you may need an EIN:
● To file quarterly payroll tax returns after you hire employees.
● To withhold taxes from contractor pay — for instance, if you don’t have a tax ID number for a contractor.
● To open bank accounts or apply for loans in the business’s name.
● To file federal tax returns for partnerships, s-corps, and c-corps.
● If you’re changing the structure of your business.
● If you’re buying an existing business and need a new EIN.
In most situations, it’s better to err on the side of caution. If you’re not sure whether or not you need an EIN, it won’t hurt you to get one. Then, you’ll have the number when you need it. Otherwise, you risk getting into a situation where you need the number, and you have to deal with delays because you didn’t get it in the first place.
Prepare The Required Information
To apply for an Alaska EIN number, you need to know the reason you’re applying. If multiple reasons apply, you should just select the most relevant one. Beyond that, you need basic details about your business for the application. This includes your business name, contact details, the name and tax ID number of a responsible party, the number of employees, and the type of business.
Corporations and LLCs also need to note additional details about where they were formed and the number of members. You may need to incorporate or register your LLC before you complete the EIN application.
To quickly get an EIN number Alaska residents should apply online. Applying online is convenient and can usually be done at any time of the day or night. Once you complete the application, you should get your number almost instantly, and in most cases, you should get it within a business day.
Submit Your Application Via Mail
Alternatively, Alaska business owners can apply for an EIN through the mail using a paper version of Form SS-4. If you use this option, you should get your EIN in six to eight weeks. If you like, you can fax in your paper EIN application. If you provide a return fax number, you will get your number in about a week. If you ask to have the number mailed to you, you will get it in a few weeks.
Unfortunately, Alaska business owners cannot obtain an EIN on the phone. Applying for a federal employer identification number (EIN) over the phone is reserved for businesses that are not based in the United States.
Frequently Asked Questions
An EIN is a federal tax ID number. Business owners use it on federal tax forms and for banking purposes. Almost all Alaska businesses need an EIN. Additionally, you may also need an Alaska tax ID number so that you can complete state tax forms.
No. The Alaska Secretary of State does not issue EINS. To get an EIN number Alaska businesses need to apply with the federal government, not the state.
Both a federal EIN and an Alaska tax ID number identify your business on tax forms. However, an EIN is for federal tax purposes and for banking, and an Alaska tax ID is for state tax purposes.