How To Get A EIN (Tax ID) Number In Arkans
The Arkansas business community is an exciting place to launch a new endeavor, but starting a business also comes with many different challenges and obligations. One of the first tasks you’ll need to address is obtaining an Arkansas EIN number. Once they have an EIN number Arkansas business owners can file federal payroll taxes and information returns, and they can also use their number on bank paperwork. Additionally, you will also need an Arkansas tax ID number for state taxes.
Wondering how to apply for an EIN in Arkansas. To help you out, this guide explains the information you need, and it covers the application options. Then, it briefly outlines the differences between state and federal tax ID numbers.
How To Apply For A Tax ID Number In Arkansas
Applying for an Arkansas EIN number requires basic information about your business such as your address, phone number, and business structure. If you’re incorporated, you’ll also need to note the state where you incorporated, and LLCs need to note the formation date and the number of members. On top of the basics, you also need to make a few decisions as noted below.
Prepare The Required Information
To apply for an EIN number Arkansas business owners need to make decisions or estimations about the following:
● Responsible party — You must note the name and taxpayer identification number of a responsible party. For a sole proprietorship, this is the owner, but if you have multiple owners, you should list a principal officer, general partner, or another person who directs the business and controls its finances. This has to be a person. It can’t be a corporation, partnership, trust, or other non-human entity.
● Trade and legal names — These names are typically the same for corporations or LLCs that elect to be taxed as a corporation, but they often vary for sole proprietorships who use their individual name as the business’s legal name and a “doing business as” name for their trade name. Make sure that the name is available in your state before applying for the EIN.
● Reason for applying — The main options include hiring your first employee, meeting withholding requirements for contractors, starting a new business, buying an existing business, or banking purposes. If you have multiple reasons that you need an Arkansas EIN number, simply choose the most relevant reason.
● Number of employees — You also need to estimate the number of employees you’re going to have during the year. If you anticipate owing less than $1,000 in federal payroll taxes, you can also use your EIN application to elect to file employer payroll returns annually.
Beyond those big questions, the majority of the details that you need are straightforward. After you gather the required information, you can submit your application online or by mail or by fax.
To apply for an EIN number Arkansas residents just need an internet connection and the details noted above. Then, they can fill out an easy online application, and often, they will receive their number the same day that they apply.
Submit Your Application Via Mail
If time allows, you may also apply for an EIN through the mail. To do this, you will need a paper copy of Form SS-4. You fill it out with the details explained above. Then, you simply mail it to the IRS and wait six to eight weeks for a response.
You can speed up this process slightly by faxing in your application. If you opt to get your number faxed back, you can get it in about a week. It takes several weeks to get a number through the mail in response to a faxed application. Unfortunately, you can only apply over the phone if you’re not based in the United States.
Frequently Asked Questions
An EIN is a federal identification number that you need to file federal business taxes such as payroll taxes, corporate income taxes, and excise taxes. You can also use this number for banking purposes. Most businesses in Arkansas need this number, but there are a few exceptions.
EINs are issued by the IRS. However, you may need to register your business with the Arkansas Secretary of State.
An Arkansas tax ID is a state number. You obtain it from the Arkansas Department of Financial and Administration, and then, you use it to file and pay Arkansas taxes. An EIN, in contrast, is a federal number used for federal tax issues.