How To Apply For A Tax ID Number In Georgia
Georgia business owners must have a Federal Employer Identification Number (EIN) and a state tax ID number. These are required by the state and federal government based on the type of business you own, whether or not you have employees, and the business taxes you need to pay. This guide outlines which numbers you need and how to apply for an EIN and other tax ID numbers.
Most businesses need an EIN. It’s a federal tax ID number that the Internal Revenue Service, banks, and other entities use to identify your business. Here are some key reasons companies in Georgia must obtain an EIN number Georgia
- Federal income tax purposes — You need an EIN if you file taxes as a partnership, an S-corp, or a C-corp.
- Excise taxes — If your business pays excise taxes, it needs an EIN.
- Payroll taxes — You need an EIN before you hire any employees for your business.
- Withholding taxes — You need an EIN if you want to withhold taxes from a 1099 independent contractor.
- Banking purposes — Many banks require an EIN to open a business bank account or apply for a loan in your business’s name.
Additionally, you may need to obtain an EIN number in Georgia if you acquire a business that has an existing EIN. Here is an overview of the application process.
Prepare The Required Information
The application process will be smooth and straightforward. You need basic details about your business and yourself. You also need to name a responsible party. If you run a sole proprietorship, you are the responsible party. Otherwise, the responsible party can be a partner, owner, or director.
You also need to know why you want an EIN number Georgia. If your business is an LLC or a corporation, you must note that your business was formed in Georgia. Finally, you will need to estimate the number of people you anticipate employing this year and if your payroll taxes will be more than $1,000 for the year.
Apply Online
Applying for an EIN number Georgia online is the fastest and easiest way to obtain this number. You’ll enter the details outlined in your preparation, answer any other questions, and sign your application electronically. You should receive your EIN number immediately, and you can start using it immediately.
Submit Your Application Via Mail
You can also apply for an EIN by mail. To do so, you can print a paper EIN application or hire someone to submit a paper EIN application on your behalf. Once your application is processed, your EIN number will be sent via mail. This process takes longer but is just as convenient if you prefer to avoid electronic communications.
Frequently Asked Questions
Business owners have many questions about EINs and state tax numbers. The following questions answer some of the most common questions people ask.
EIN stands for employer identification number. It’s a federal tax ID number that businesses use on employer tax returns. Businesses also use this number on business tax returns, bank documents, and other forms. Trusts, estates, non-profits, and other entities also use this number.
Your Georgia EIN number and Georgia tax ID number are critical for various business functions. Get these numbers as soon as you start your business, and keep them in a safe place.
EIN numbers are assigned by the Internal Revenue Service. You should contact the Georgia State Tax Commission to obtain a Georgia state tax ID.
No, these numbers are not the same. A Georgia EIN number is a federal tax ID number generated by the IRS. The Georgia Department of Revenue generates a Georgia tax ID number. You will need a Georgia state tax ID if your business pays sales tax, withholding tax for employees, Georgia corporate income tax, or other types of Georgia taxes.