How To Get A EIN (Tax ID) Number In Kentucky

Kentucky has one of the lowest costs of doing business in the country, and the state offers a host of other benefits for new business owners. If you’re planning on leveraging this state’s great climate to launch your own business, you will need to obtain a Kentucky EIN number and a Kentucky tax ID number.

 To help you out, this guide outlines the basics. Here’s what you need to know.

How To Apply For A Tax ID Number In Kentucky

Before applying for an EIN number, Kentucky business owners should work through the following questions. If you answer yes to any of these questions, you need an EIN number. If you answer no to all of them, you can wait until your situation changes, and then, you can apply:

  • Do you plan to hire employees?
  • Will you need to withhold money from contractor paychecks? Note that even if you don’t need to withhold contractor taxes, you may want an EIN to put on their 1099 forms so you don’t have to use your Social Security Number.
  • Do you need to pay federal excise taxes?
  • Are you going to file a standalone business tax return such as an S-corp, C-corp, or partnership return?
  • Do you want to open a bank account in the business’s name?
  • Do you want to apply for loans in the business’s name?
  • Are you buying an existing business with an EIN? Keep in mind that EINs don’t transfer from owner to owner, and if you keep using an old EIN, you can have issues with payroll tax liability.

Generally, every business needs an EIN. The only exception is a sole proprietorship with no employees and no sales tax obligations. In addition to the above, you will also need an EIN if you run a nonprofit, an estate, a trust, or several types of pension plans.

Prepare The Required Information

Now you know whether or not you need an EIN. So, it’s time to figure out the information you need to apply. Here is a list:

  • Business name and contact details.
  • Name, tax ID number, and contact info of a responsible party who can make financial decisions for the business.
  • Type of entity and details about LLC or corporation if applicable.
  • Main business activity such as service or product.
  • The reason you need an EIN.
  • The number of people you’re going to hire.
  • If you anticipate owing less than $1,000 in payroll tax and want to file payroll taxes annually.

As you can see, these details are very straightforward. However, you should take a few moments to ensure you have everything before you start the EIN application. Then, you can complete the application in one sitting.

Apply Online

You can apply for an EIN online, and if you want your number quickly, this is the best option. Once you get your number, you can start using it right away, and when you complete the EIN application online, you generally get the number the same day.

Submit Your Application Via Mail

If you don’t want to apply online, you can complete the process through the mail. To get an EIN number, Kentucky residents can fill out a paper Form SS-4. Then, they mail it in and wait for a response. You should receive your mailed number in six to eight business weeks.

Frequently Asked Questions

When applying for an EIN number, Kentucky residents often have a lot of different questions. In particular, they want to know where to get this number, and they want to know about the differences between an EIN and a Kentucky state ID. Check out these FAQs to learn more.

What Is A Tax ID Number (EIN) & Do I Need One In Kentucky?

An EIN or FEIN is a federal employer identification number. You need this number if you want to hire employees. However, you will also use this number to identify your business on federal tax forms and bank documents.

Are EINs Issued by the Kentucky Secretary of State?

No, the Secretary of State does not issue EINs or any other tax ID numbers. However, the Secretary of State does help with other business activities. That includes forming LLCs, incorporating, picking out doing business as names, and similar essentials.

Is An EIN The Same As A Kentucky Tax ID Number?

No, an EIN is a tax number issued by the IRS, and a Kentucky tax ID number is issued by the Kentucky Department of Revenue. You use the EIN on federal forms and for banking, and you use the state number on state forms.