How To Get An EIN (Tax ID) Number In New Mexico
New Mexico may be known for its hot air balloon festival, its stark Western landscape, and as the home of Roswell — an alleged alien landing site. However, the state is also home to many businesses from big oil and gas companies to small mom-and-pop shops.
If you’re thinking about starting a business in this exciting state, you will need a federal employer identification number (EIN) and a state tax ID. To help you out, this guide explains how to apply for a New Mexico EIN number. Then, it answers common questions about the differences between state and federal tax ID numbers.
How To Apply For A Tax ID Number In New Mexico
To get an EIN number New Mexico entrepreneurs should review the rules to determine if they need this number. Then, they just need to prepare some details about their business and complete the application online or on paper.
Wondering if you need this number? If any of the following apply, you do:
● You’re hiring an employee or need to withhold taxes from a contractor’s payments.
● You’re starting a partnership or corporation.
● You’re changing the existing structure of your business, such as bringing on a partner when you own a sole proprietorship.
● You’re buying an existing business and need a new EIN.
● You want to open a business bank account or apply for a business loan.
There are several other situations where you may need this number. These numbers also never expire, and there’s no penalty for applying for one before you need it. Even if you don’t need an EIN right now, you may want to get one to be on the safe side.
Prepare The Required Information
To apply for an EIN number New Mexico residents need the following details:
● The name and address of the business.
● Your principal line of business.
● The type of business entity or other entities as applicable, such as trusts, estates, or retirement accounts.
● The name and tax ID number of a responsible person who can make financial decisions for the entity.
● The reason you need an EIN.
● The number of people you’re going to employ this year.
Luckily, with the EIN application, you don’t have to write out many details. Most of the questions offer multiple-choice answers or they require very minimal details. Once you have the details you need, you can continue to the next step which is applying online or through the mail.
Want to get your EIN ASAP? Then, you should submit an application online. To do so, gather the details noted above. Then, give yourself about 20 minutes or so to complete the process. When you apply online, you get your tax ID right away.
Submit Your Application Via Mail
If you don’t mind waiting a few weeks, you can request your EIN through the mail. To start, download a paper copy of Form SS-4. Then, complete it and either mail or fax it to the IRS. If you mail your request, you should get your number in four to six weeks. Faxing saves time because you don’t have to wait for the post office to deliver your envelope so you can expect to receive the number a week or two earlier.
Frequently Asked Questions
Starting a business is never easy, and while you may be an expert in your field, most people struggle with the tax aspects of starting a business. To point you in the right direction, here are some FAQs about tax ID numbers in New Mexico.
Also called a federal tax ID, a New Mexico EIN number is a nine-digit number that identifies your business on federal tax forms. Banks also request this number from businesses. Almost all New Mexico businesses need this number.
The New Mexico Secretary of State does not issue EINs. To get an EIN number New Mexico residents should apply with the IRS. To get a New Mexico tax ID number, you should apply with the New Mexico Taxation and Revenue Department.
An EIN and a New Mexico tax ID number are not the same, but they serve similar functions. You use the EIN on federal tax forms, and you use the state ID number when you file state taxes.