How To Get An EIN (Tax ID) Number In Michigan

Apply for Michigan Tax ID (EIN) Number

Business journalists have dubbed Michigan as the “workplace of the future.” While this is definitely good news for employees, it’s also great news for entrepreneurs. However, before you can hire your first employee in this state, you need to obtain an Employer Identification Number (EIN).

To help you out this guide explains why you need an EIN. It also answers some common questions about the difference between an EIN and a Michigan tax ID number. To get an EIN number, Michigan business owners need to do the following.

How To Apply For A Tax ID Number In Michigan

Most businesses in the “Wolverine State” need a Michigan EIN number. You must get this number before you hire your first employee. You will put the EIN on employee tax forms such as W2s as well as on federal quarterly payroll tax forms.

Even if you don’t plan to hire employees, you may need an EIN if you want to open a business bank account or apply for a loan in your business’s name. You also need an EIN to withhold taxes from contractors. On top of that, you use these numbers for partnership, S-corp, and C-corp returns. Keep reading to learn how to apply.

Prepare The Required Information

Once they determine if they need an EIN number Michigan residents need to prepare the required information. Whether you complete the EIN application online or through the mail, you need basic details about your business such as its name, address, and the number of employees you expect to pay over the next 12 months.

You will also need to note the type of business entity that you have and explain why you want an EIN. The EIN application lists several options. If more than one applies, you can select the main reason that you need this number. Don’t worry — as long as your business details are correct, it doesn’t matter too much how you answer this question.

Finally, you need to note a responsible party. If you’re the owner of the company, that should be you. For companies with multiple owners or shareholders, try to choose an individual who can be responsible for communicating with the IRS and paying taxes. The responsible person must be an individual. It cannot be a business or any other type of non-human entity.

Apply Online

Want your EIN number as quickly as possible? Then, you should opt for the online application. You can complete this process from anywhere from downtown Detroit to the Upper Peninsula as long as you have access to the internet. If you have the details listed above, you should be able to complete the process in less than a half hour. Generally, Michigan business owners get their number right away.

Submit Your Application Via Mail

Alternatively, you can apply for a Michigan EIN number through the mail. If you take this route, you need a paper copy of Form SS-4. Then, you simply fill out the form with the details noted above and mail it to the IRS. In most cases, you will receive your number in six to eight weeks.

Frequently Asked Questions

Still, have questions? If so, you are not alone. Most first-time business owners have all kinds of questions about this process. Here are some of the most common ones:

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

An EIN is a federal tax ID number. All businesses with employees in Michigan need this number. You also need this number for business banking purposes and to complete many different kinds of federal tax forms.

Are EINs issued by the Michigan Secretary of State?

No, the Michigan Secretary of State does not issue EIN numbers. To get an EIN number Michigan business owners need to contact the federal government. They may also need to get a Michigan tax ID number from the Michigan Department of Treasury. In contrast, you can contact the Secretary of State to establish an LLC, incorporate, or handle similar business matters.

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

An EIN is similar to a Michigan tax ID number. Both numbers are used to identify your business on tax forms. You use the EIN on federal tax forms, and you use the Michigan ID number on state tax forms. In most cases, banks will request your EIN.