How To Get A EIN (Tax ID) Number In Illinois
When you run a business in Illinois, you will need an Illinois EIN number as well as an Illinois tax ID number. The EIN is for federal tax forms such as the 941, 940, 1065, and 1120 — note the exact forms you need to file vary based on your business. The state number is for sales, withholding, and other state taxes. Here’s what you need to know about obtaining these numbers.
How To Apply For A Tax ID Number In Illinois
Ready to apply for an EIN in Illinois? Then, keep reading. The following steps outline what info you need. Then, they explain how to apply online or through the mail.
Prepare The Required Information
To get an EIN number Illinois businesses need to provide several details about their organizations. This allows the government to understand the type of entity they are issuing the number to. Note that EINs aren’t just for businesses. They are also used by nonprofits, trusts, estates, some pension funds, and a few other types of entities.
You need the basic details about your business such as its name, address, and phone number. You will also have to select a responsible party. This cannot be an outside party like a third-party accountant or bookkeeper. Instead, it needs to be a company owner or shareholder who is responsible for making financial decisions for the business.
You must note a human as your responsible person, and they must have a tax ID such as a Social Security number (SSN) or an Individual Tax Identification Number (ITIN). Even if some of the business’s owners are partnerships or corporations, they cannot be the responsible party.
As you may know, the letters “EIN” stand for “employer identification number”. This is because you use the EIN on employer tax forms, and hiring your first employee is the main reason that many people get this number. As such, you must also make estimates about the number of employees you plan to hire, and if you anticipate paying less than $5,000 in wages during the year, you can use your EIN application to opt to file payroll taxes once a year instead of quarterly.
Once you have these details ready, you can start the EIN application online or through the mail.
If you want an Illinois EIN number as quickly as possible, you need to apply online. When you apply for an EIN online, you provide the same information as you do on Form SS-4, but you type it into an online application.
You usually don’t have to wait. You will get your number right away. Then, you will get a hard copy of the EIN number in the mail a few weeks later, but you can start using it as soon as you get the number online.
Submit Your Application Via Mail
If they don’t want to apply online for an EIN number Illinois business owners can apply through the mail. Applying through the mail requires you to fill out Form SS-4 and mail it to the government. Alternatively, you can have a tax professional or a business formation company submit this form on your behalf.
Frequently Asked Questions
New business owners often have a lot of questions about EINs and state tax IDs. To make sure you understand the basics, the following section outlines frequently asked questions about tax ID numbers on the state and federal levels.
An employer identification number or EIN is a tax ID number issued by the federal government, and most businesses need one. Once they have an EIN number, Illinois business owners can use it on federal payroll tax forms, federal informational partnership returns, corporate income tax returns, and other federal tax returns. They can also use the number at their bank.
No. The Illinois Secretary of State does not issue EIN numbers. You must obtain these numbers from the IRS. You will work with the Secretary of State to register your business as an LLC or to set up a corporation in your state. You will get your state ID from the Illinois Department of Revenue.
These numbers are similar, but they are not the same. You use both of them on tax forms to identify your business. However, an EIN is for federal taxes, while an Illinois tax ID number is for state taxes. Typically, banks require the federal ID number if you want to open accounts or apply for loans as a business entity.