How To Get A EIN (Tax ID) Number Maryland
Business owners in Maryland have high praise for the state’s infrastructure assets and labor market, but they don’t have such a positive view of the state’s tax and regulatory environment. If you’re planning on launching a business in Maryland, you have to be ready to follow the tax laws and business regulations, and one of the first steps is to apply for tax ID numbers.
This process can be confusing for new business owners. Luckily, there is help available. This guide outlines the basics of how to apply for a federal employer identification number (EIN). Then, it looks at some FAQs about the process. To get an EIN number Maryland businesses need to do the following.
How To Apply For A Tax ID Number In Maryland
The first thing you need to do is figure out if you need a tax ID number. With the exception of sole-prop freelancers who don’t sell products or hire employees, most businesses need a Maryland EIN number. Here are the main reasons you need this number:
- To hire your first employee.
- To withhold taxes for a contractor (note contractor withholding is only required in some situations, such as when you can’t verify the contractor’s tax status).
- To file partnership or corporate income tax returns.
- To open bank accounts in the business’s name.
- To file excise taxes.
- If you’re buying an existing business (note that the EIN doesn’t transfer to the new owner).
Keep in mind that not just businesses need EINs. You may also need an EIN if you run a nonprofit, an estate, a trust, a pension plan, or several other types of entities.
Prepare The Required Information
Once you figure out whether or not you need an EIN, it’s time to start the application. First, gather the details that you need. In addition to basic info about your business’s name, structure, and address, you also need to name a responsible party and share details about your employees.
The responsible party needs to be an individual who makes financial decisions for the business. That includes the owner, partners, or key shareholders. The employee questions are just estimates so answer them to the best of your ability, but don’t worry if the answers change after you’ve gotten the EIN.
Finally, you will need to note why you’re applying for an EIN. Don’t worry too much about this question. Simply, put down the answer that is closest to what you believe. Your application should be accepted regardless of the explanation you select.
The fastest way to obtain a Maryland EIN number is online. You gather the above details, and then, you fill out an online application. Once you hit submit, the program should generate your number very quickly.
Submit Your Application Via Mail
The other option is to apply through the mail. To get a mailed EIN number Maryland business owners need to complete a paper SS-4 Form. Then, they pop it in the mail and wait six to eight weeks for a response.
Frequently Asked Questions
Still, have more questions? If so, you’re not alone. When applying for an EIN number Maryland residents often have a lot of questions. Here are three of the most common ones.
An EIN is a federal tax ID number, and the majority of Maryland business owners need one. There is also a Maryland tax ID number that you may need for state tax forms. In most cases, your business will have one federal number, and a unique state number for every tax that you pay.
No, the Secretary of State does not issue the Maryland EIN number. This number comes from the IRS. The Secretary of State (SOS) offers different types of business services. For instance, you may need to register a trade name, set up an LLC, or submit your corporation’s articles of incorporation to the SOS office.
No, these numbers are not the same. An EIN is a federal tax ID number, but there are also state tax ID numbers. Sometimes, people refer to an EIN as a tax ID number. But keep in mind that it’s a federal tax ID number. A Maryland tax ID number usually refers to the tax ID numbers that you get from the state.