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

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

Mississippi offers a lower-than-average cost of doing business and a business-friendly regulatory environment. This makes the state a great place to start a business, but before you dive in, you will need to obtain a Federal Employer Identification Number (EIN) and a state tax ID number.

This guide covers what you need to do to get these numbers. Then, it outlines the differences between state and federal tax ID numbers. To learn more, keep reading — to get an EIN number Mississippi business owners need to do the following.

How To Apply For A Tax ID Number In Mississippi

Almost all businesses in Mississippi need a Mississippi EIN number. Wondering if you need this number? If you answer yes to any of the following questions, you do:

  • Do you plan to hire employees?
  • Do you expect that you will need to withhold taxes from contractor payments?
  • Do you want to open a business bank account in your business’s name?
  • Do you want to apply for loans in the business name?
  • Are you buying an entity with an existing EIN? If so, you need to obtain a new number.
  • Are you creating a trust or a retirement plan?

If you answer yes to any of these questions, you need to obtain an EIN for your business. Additionally, you may also need to obtain a Mississippi state tax ID number if you have employees or if you sell taxable goods.

Prepare The Required Information

To obtain an EIN number Mississippi business owners need to gather the following details. Getting this information together before you start the EIN application will help to streamline the process. Here’s what you need:

  • Business name, address, and phone number.
  • Type of business entity or other entity (trust, estate, nonprofit, etc) as relevant.
  • The main line of business service or product.
  • The name of a responsible person — generally, this is someone with an ownership interest who can make financial decisions on behalf of the business.
  • The number of employees you plan to have over the next year.
  • The reason you’re applying for an EIN.

When you fill out the application, you also have the option to choose to file payroll tax forms annually instead of quarterly. You can only make this election if you anticipate paying less than $1,000 yearly in payroll taxes. Once you have the election, you continue to file annually until the IRS contacts you to switch to a quarterly filing schedule.

Once you have the information you need, you can apply online, through the mail, or by fax. Here are the instructions.

Apply Online

To apply for a Mississippi EIN number online, you need an internet connection and the details listed above. Give yourself about 30 minutes to complete the process. You should receive your number almost immediately after you apply.

Submit Your Application Via Mail

When using the mail to apply for an EIN number Mississippi residents need a copy of Form SS-4. They should fill out this form with the above details, and then, they should mail it to the IRS. Getting an EIN this way takes six to eight weeks, but you can shave off some time by faxing in the application instead of using the mail.

Frequently Asked Questions

Ready to learn more? Then, check out these FAQs. They should help clear up any lingering confusion about these numbers.

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

An EIN is a federal tax ID number. If you run a business in Mississippi, you need this number to complete the following tax forms: payroll, excise, partnership, and corporate.

Are EINs issued by the Mississippi Secretary of State?

No, the Secretary of State does not issue EINs. In Mississippi, the SOS oversees business formation activities such as creating limited liability companies or corporations. You must get an EIN from the IRS. You may also need to get a Mississippi tax ID number from the Mississippi Department of Revenue.

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

No, a Mississippi EIN number is not the same as a Mississippi tax ID number. The first number is issued by the federal government, while the second number is issued by the state. In that same vein, you use an EIN on federal tax forms for your business, and you use the Mississippi ID on state tax forms. However, these numbers share the same purpose — they identify your business to government entities for taxation purposes.