How To Get An EIN Number In Texas
Registering for an LLC is just the first step in getting your business or organization up and running.
If you have registered for an LLC in Texas, you will need to file taxes on both the federal and state level. This is compulsory for all business entities but optional for sole proprietors.
Just like individuals have Social Security Numbers, every LLC in Texas must have a Federal Employer Identification Number (FEIN or EIN) as well as a Texas Tax ID Number (or Texas EIN). The EIN is issued by the Internal Revenue Service (IRS), while the Texas Tax ID number is issued by the Texas Comptroller.
Aside from fulfilling tax obligations, an EIN number is required for business operations like
- Financial applications (bank loans, business bank accounts, and business credit cards)
- Applications for business permits and licenses
- Hiring employees
How to Apply For A Tax ID Number In Texas
Since the procedures for getting a Tax ID Number Texas are state-specific, please check the Texas website on how to get a Tax ID Number in Texas.
On the other hand, the federal EIN number is the same across the country, and our comprehensive guide will help you prepare for the process.
Prepare Required Information
As the owner of a business entity, you should keep a comprehensive list of information about the organization. This comes in handy for EIN purposes and future administrative and legal tasks – drafting contracts, applying for bank loans, and more.
The Internal Revenue Service requires you to fill up some mandatory information during the EIN application process. If you opt for the online application, note that it doesn’t allow you to save your progress and pick up where you left off.
Gather these details before you start:
- Name of the organization
- Full address of the organization
- Important dates, i.e. when the organization was started or acquired, and the closing month of the fiscal year
- Responsible party information (this refers to the person who has full control over the entity) i.e. First and Last Name, Social Security Number, and Title
You will also be asked some questions about the nature of the business. You can apply for an EIN number online, as mentioned above, or by mail.
Applying online for an EIN Number Texas is the most convenient method, since all you need is a device with a stable internet connection. To be eligible for online application, the LLC must be located within the United States. The responsible party must also have a valid Taxpayer ID number.
Choose your company’s legal structure below to start your application. You will receive your EIN Confirmation Letter (CP 575) with your unique 9-digit EIN number upon successful completion.
Apply By Mail
You can also obtain your EIN number in Texas by mail. Applying for a Tax ID Number Texas by mail requires the same information as above, but the process takes approximately 2 weeks to complete.
Simply print the latest version of Form-SS4 and fill in the required fields. Enclose it and mail it to the Internal Revenue Service, and if successful, you will receive your EIN Confirmation Letter (CP 575) by mail.
Frequently Asked Questions
An Employer Identification Number (EIN) is a 9-digit number issued by the Internal Revenue Service (IRS) for business owners. It is used to identify a business entity.
An EIN is not the same as a Texas Tax ID Number. The EIN is issued by the IRS for federal taxes, and a Texas Tax ID Number is issued by the Texas Comptroller for state taxes.
Generally, most businesses need a Tax ID Number in Texas, but it is optional for single-member LLCs or sole proprietors with no employees. Trusts, Estates, and Non-Profit Organizations are also required to have an EIN.
We recommend making copies of your EIN Confirmation Letter (CP 575) as it will be issued only once by the IRS. If you lose your EIN number, retrieving it is a tedious process which involves calling the IRS and requesting an EIN Verification Letter (147C). It will be sent to you via mail or fax which could take several days to 2 weeks. Alternatively, look through your old financing documents or tax returns that you may have recorded the EIN on.
We are experts in helping individuals and business owners like you apply for your EIN number Texas. Leave it to our specialists to manage the full process for you, including verifying your eligibility, gathering the required information, and organizing the necessary documents.