One of several steps most businesses will need to take when starting a business in Texas is to register for an Employer Identification Number (EIN) and Texas state tax ID numbers. These numbers are most commonly used to register a business with the federal and state government in order to pay sales taxes, payroll taxes, and withhold taxes from employee wages. Show
Let’s review in more detail what this number is used for when it is required, the cost, and how to register. Also See: Guide to Starting a Business in Texas What is the Employer Identification Number (EIN)?EIN is short for Employer Identification Number and is sometimes referred to as a Federal Employer Identification Number, FEIN, Federal Tax Identification Number, or Federal Tax ID Number. This is a unique nine-digit number that is similar to a social security number for an individual but instead identifies a business. The EIN is primarily needed to hire employees, as the EIN used as the account for paying payroll taxes, income tax withholdings, and unemployment taxes. Some other uses of the EIN include:
Who needs an EIN?The EIN is needed for Texas businesses that are either:
The EIN is optional for sole proprietorships and single-member LLCs without employees as those business entities will use the owner’s social security number (SSN) or Individual Taxpayer Identification Number (ITIN). While it’s not required, using an EIN in place of the owner’s SSN can help protect the owner from identity theft. Related: How to register for an EIN without an SSN
How to apply for an EINThe easiest and fastest way to apply for an EIN is to visit the Internal Revenue Service (IRS) website, between the hours of 7 am – 10 pm EST, Monday – Friday. The online application process only takes about 5 minutes to file the EIN online, and the number will be ready in seconds. If applying online isn’t an option, you can also complete an EIN application by mail or fax by sending Form SS-4 to the IRS fax number 855-641-6935. You can even get an EIN over the phone if the company was formed outside the U.S. by calling 267-941-1099. If filing by phone, note that it isn’t a toll-free number. There is no cost to apply for an EIN. See how to register an EIN in this video: If you prefer to have some guidance in applying for an EIN, companies like IncFile or ZenBusiness can quickly take care of the registration.
What Information Do I Need to Get an Employer Identification Number?Applying for an EIN is pretty straightforward, but you will need to obtain some information beforehand, such as:
Within seconds, the IRS will provide the EIN that can be used immediately. A few weeks later, the IRS will send the official paperwork, known as an EIN Confirmation Letter (CP 575). Is an EIN the same as a tax ID number?In addition to registering the EIN, many businesses will also need to get state of Texas tax numbers in order to pay for a variety of state business taxes. Business tax numbers in Texas are often confused with the Employer Identification Number. The EIN is a separate number that is used to federally register a business with the Internal Revenue Service (IRS) and may be needed in addition to state tax numbers. The most common reasons a business in Texas will need to register for a state business tax numbers include:
How much does it cost to get an EIN in Texas?There is no cost for an EIN when you apply directly through the Internal Revenue Service. Should I get an EIN or LLC first?Be sure to register your LLC or Corporation before registering for an EIN. You should wait until the name of the entity is confirmed with the Texas Secretary of State before registering the EIN. Related: How to register for an LLC in Texas You might also like
Greg BouhlWelcome! My name is Greg Bouhl, and I have over 21 years as an entrepreneur, educator, and business advisor, where I worked with over 1,600 entrepreneurs to help them start and grow their businesses. As a small business advisor, I got fed up with clients finding inaccurate and outdated information when they were researching how to start a business online, so I launched StartingYourBusiness.com to be a trusted resource. I'm constantly adding and revising this site, but if there is a question you have about starting a business or need help finding something, please ask! Guide to Starting a Business in Texas How To Fill Out The Texas Certificate of Formation 2022 Guide to Starting an LLC in Texas How To Do A Texas Business Name Search How to File a DBA in Texas [2022] What is a Texas Registered Agent? How to Register for a Sales Tax Permit in Texas How to get a Resale Certificate in Texas Steps to Hiring your First Employee in Texas Popular QuestionsHow do I form an LLC? See more start-up questions Popular Business IdeasCar Detailing See more business ideas Rules and regulations for starting a business change frequently. While we do our best to keep this information fully up-to-date, remember this site is for informational purposes only and does not provide legal or tax advice. Additionally, StartingYourBusiness.com may earn a small commission from products or services mentioned on this site. How much does it cost to get a EIN number in Texas?To obtain an EIN for your Texas business, you must file a Form SS-4. There is no fee for applying for an EIN.
How long does it take to get an EIN number in Texas?The processing timeframe for an EIN application received by mail is four weeks. Ensure that the Form SS-4PDF contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type and mailed to the taxpayer.
Can I apply for an EIN myself?You may apply for an EIN online if your principal business is located in the United States or U.S. Territories. The person applying online must have a valid Taxpayer Identification Number (SSN, ITIN, EIN). You are limited to one EIN per responsible party per day.
Is a Texas tax ID the same as an EIN?The Texas Taxpayer Number is the 11-digit number assigned by the Comptroller of Public Accounts. The Texas taxpayer number is not the same as the Federal Employer Identification Number or the Texas Secretary of State (SOS) File Number.
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