How To Get An EIN (Tax ID) Number In Arizona
Starting a business in Arizona offers a lot of benefits including a growing economy and a favorable tax environment. However, even in a favorable environment, businesses still have to deal with a lot of federal and state taxes. To meet their tax filing obligations, most businesses need an Arizona EIN number and a state tax ID number.
To get an EIN number Arizona businesses, nonprofits, trusts, and other entities simply need to complete an application and submit the required information. Then, they need to reach out to the state’s revenue department for their state ID number. Keep reading for more details and a look at the process.
How To Apply For A Tax ID Number In Arizona
Before applying for an EIN, you need to determine if you need this number. Here are the main reasons: You need an EIN number before you hire your first employee. You also need an EIN to file c-corp, s-corp, and partnership tax returns. If you want to open a bank account or apply for loans in your business’s name, an EIN is critical.
Beyond that, you may need an EIN if you start a trust, a farmer’s cooperative, or certain types of retirement plans in Arizona. Here are the application instructions.
Prepare The Required Information
Regardless of how they apply for an EIN number Arizona residents need the following details:
● Business name including both legal name and trade or doing business as (DBA) name.
● Business contact details and mailing address.
● Name of a responsible party who directs the business’s finances.
● Tax ID number such as a Social Security Number for the responsible party.
● Type of entity.
● Projected number of employees over the calendar year.
● If any of your employees are household or agricultural employees.
● Whether or not you expect to owe more than $1,000 in payroll taxes during the year.
● Principal business activity and merchandise sold or services provided.
● Reason you’re applying for an EIN.
Then, you also need to note if the business has ever applied for an EIN before. That doesn’t prevent you from obtaining an EIN, but it’s important to realize that you generally can only apply for one EIN per day.
If you want your Arizona EIN number as quickly as possible, you need to apply online. To do so, gather the details listed above. Then, start your application. Generally, you get your number the same day that you apply or by the next business day.
If you apply online, the IRS will also send you a copy of the number in the mail, but you don’t have to wait for the paper copy. You can start using your number as soon as you receive it digitally.
Submit Your Application Via Mail
Alternatively, you can apply through the mail using a paper copy of Form SS-4. You also need the info noted above. To protect yourself, consider taking the application to the post office. That can help reduce your risk of mail identity theft. You should receive your number in six to eight weeks.
Frequently Asked Questions
New business owners often have many questions about obtaining an EIN in Arizona. Here are answers to some of the most commonly asked questions.
A tax ID number is a number that you use to identify your business on tax forms. In Arizona, you will need an Arizona tax ID number for state tax forms. Most businesses also need a federal tax ID number called an EIN for federal tax forms.
These numbers are not issued by the Secretary of State. To get an EIN number Arizona residents need to contact the IRS. However, you may also need to reach out to the Secretary of State to register an LLC, file articles of incorporation, or deal with other business formation essentials.
An EIN and an Arizona tax ID number are similar in that they both identify your business on tax returns. However, an EIN is for federal withholding tax, excise tax, business information returns, and other IRS-related tax issues. An Arizona tax ID number is the number you use on returns that you file with the Arizona Department of Revenue.