How To Get An EIN (Tax ID) Number In Indiana
Named the best state to run a business by Forbes Magazine, Indiana offers entrepreneurs low business costs and great potential for revenue. However, with opportunity comes responsibilities, and when you launch your business in Indiana, you will also need to deal with banking and tax obligations. This requires an EIN and a state tax ID.
To help you out, this guide explains how to get an Indiana EIN number. Then, it briefly outlines the differences between an EIN and an Indiana tax ID number.
How To Apply For A Tax ID Number In Indiana
The majority of businesses need an EIN number. Wondering if your business does? If you answer yes to any of the following questions, you need an EIN number.
- Do you plan to hire employees?
- Do you need to withhold taxes from contractor payments? For instance, you do if you don’t have a valid W9.
- Do you want to open a bank account or apply for a loan in your business’s name?
- Are you setting up a partnership or a corporation? This includes both c-corps and s-corps.
- Do you need to pay excise taxes?
- Are you buying an existing business? If so, the EIN doesn’t transfer so you need a new one.
You may also need an EIN for your nonprofit, estate, pension fund, church-controlled organization, or other entities. Consult with a tax advisor if you’re not sure about whether or not you need this number. Otherwise, to get an EIN number Indiana businesses should follow the instructions below.
Prepare The Required Information
To complete your EIN application, you need the name and contact details of your organization. You also need the name of a responsible party and their tax ID. In addition, you will need to answer the following questions on the application:
- Is your business an LLC? If so, did you register with the Indiana Secretary of State or in another state?
- Is your business a corporation? If so, where was it incorporated?
- Do you plan to hire employees? If so, how many?
- Do you have any agricultural or household employees?
- What is the first date you expect to pay wages?
- Do you want to file Form 944 annually instead of Form 941 quarterly? You can only select this option if you anticipate paying out less than $5,000 in wages for the year.
Once you’ve gathered these details and answered the above questions, you’re ready to start the EIN application. Keep reading for an overview of how to apply for an EIN online or through the mail.
Apply Online
When you apply for an EIN online, the number should appear at the end of the application. Even if you don’t get your number right away, you will get it very shortly. The IRS will also mail you a physical copy of the number, but luckily, you don’t have to wait for that document. You can use your EIN as soon as you receive it digitally.
Submit Your Application Via Mail
To get a mailed EIN number Indiana business owners can complete a paper application and mail it to the government. This takes about six to eight weeks. However, if you fax in the application and then request to have the number mailed to you, you can shave about a week off the waiting period.
You can whittle the timeline down to about a week if you fax in a Form SS-4 and provide a fax number for the government to fax you the number.
Frequently Asked Questions
When applying for an EIN number Indiana business owners often have a lot of questions. Check out the answers to these frequently asked questions.
An Indiana EIN number is a tax ID number from the federal government. Almost all business owners need this number. The only situation where you don’t need one is if you have a sole proprietorship with no employees, no taxable sales, and no interest in business-owned bank accounts.
No, the Indiana Secretary of State does not issue EINs. However, you may have to work with the Secretary of State if you want to incorporate or set up an LLC.
An EIN and an Indiana tax ID number are not the same. An EIN is issued by the IRS, and the latter comes from the Indiana Department of Revenue.