How to get a tax id number in texas for free

To begin your application select the type of organization or entity you are attempting to obtain a Tax ID (EIN) Number in Texas for. After completing the application you will receive your Tax ID (EIN) Number via e-mail. If you are opening a business or other entity that will have employees, will operate as a Corporation or Partnership, is required to file any of these tax returns: employment, excise, or Alcohol, Tobacco and Firearms or is a Trust, Estate or Non-profit organization you are required to obtain a Texas Tax ID (EIN).

It's not enough to register your business and acquire a federal tax identification number. You also need the right permits, licensing and tax registrations to be compliant with federal, state and local regulations. Most new businesses obtain an IRS federal employer identification number (EIN) for tax filing, but states assign special tax numbers as well. Once you've received an EIN, check your state franchise tax board to obtain the proper state tax identification numbers required by your state to operate your business.

Employer Identification Number

A state employer identification number is different from an EIN. Obtain the EIN directly from the IRS by completing Form SS-4 online or by mailing it in. This is free. Online services are quickest, immediately issuing your EIN. Once you have that ID, keep it with your business registration book along with your articles of incorporation.

Procedures to get a state number vary from state to state. For example, the Texas Comptroller's Office uses an e-file system to assign this number. Submit your business's full legal name, federal EIN and pertinent contact information, and an 11-digit number will be assigned to your new business. In Texas, there is no fee to apply.

California, on the other hand, registers tax identification numbers through the Employment Development Department. Call 888-745-3886 or go to your local Employment Tax Office to register. Hawaii assigns numbers through the Department of Taxation and requires the filing of a completed Form BB-1. This is done via the online portal.

Check with your state comptroller or franchise tax office to confirm the forms and details you need.

Uses of the EIN

One of the primary reasons a business needs a state EIN is for payroll services. Paychecks and issued 1099s use both federal and state EINs to ensure proper tax withholding for the IRS and the state tax board. States vary in terms of state income tax and unemployment tax. You generally won't be able to establish payroll services until you have a state identification number.

You also use the state EIN to acquire any sales permits required for your business and make other franchise tax payments to your state. For example, Texas requires a sales tax permit for any business that sells tangible property, provides services or leases real property in Texas. There is no fee for the Texas permit, though other states might require one. Check with your secretary of state to confirm the permits and licensing required for business in your state.

Banking and EINs

Generally speaking, you'll use the business's federal EIN for any bank or credit application. In addition, many lenders will require your Social Security number and personal guarantees for business loans if you are a new small business. Even with the federal EIN, lenders conduct searches to confirm the business is a valid entity in the state. If a lender can't identify a state EIN or sales tax permit, it might exclude you from even getting a business checking account.

Make sure all business financial accounts are kept separate from personal funds. Commingling of assets often negates any liability protection provided by limited liability partnerships or corporations.

CEOs have named Texas the absolute best state in which to do business for 13 years in a row. This state boasted the nation’s best economy in 2016 and continues to grow. It’s easy to see why businesses would want to come in droves to the Lone Star State. Texas has passed tort reform to protect businesses, boasts a low tax rate for companies, and has a large workforce in many industries. Plus, your employees can enjoy a great quality of life with the low cost of living in Texas.

With all these companies moving to Texas, many business executives want to follow suit, and you may be wondering how to apply for tax ID in Texas for your business as well. This nine digit number is used by the IRS in order to identify your business. Among the numerous other entities, your business’s federal Employer Identification Number acts is a similar way that your own Social Security number does. If you are a sole proprietor, obtaining an EIN can be beneficial in that you will not have to supply your own Social Security number for business transactions and can use your business’s Federal Tax ID in its stead.

Need specific information on filing for your state articles in Texas? Learn more about starting an LLC in Texas HERE,  staring an S-Corporation in Texas HERE, and staring a Corporation in Texas HERE.

File for Texas EIN

It is worth noting that while sole proprietors are not required to obtain an Employer Identification Number, even if acting with a DBA, corporations and partnerships are if any of the following are true: you hired at least one employee; establish a Koegh plan; pay a non-resident alien income other than wages; want to open a bank account or credit card in the name of your business; or are involved in any organizations such as IRAs, trusts, non-profits, farmers cooperatives, estates, or plan administrators. Even if your corporation or partnership does not fall into one of these categories, you may still be required to file for and obtain a Federal Tax ID number. Though the process for this may seem overwhelming and complex, the solution is simple: partner with GovDocFiling. We make it easy for you to receive a Texas EIN quickly and efficiently by doing the hard work for you. Focus on setting up shop in the heart of Texas while we do the heavy lifting. You might ask yourself if you are required to file for an Employer Identification number.

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Simple Process with Quick Results

When you choose to let GovDocFiling assist you in getting a Texas tax ID number, you get a partner that won’t let you down. We only ask two things of you. First, tell us what kind of business for which you want to receive your EIN. Secondly, provide us with a little information through our online application. That’s it. We’ll do the rest of the work and process your application quickly. Our expert team can get your business the identification you need to operate in Texas.

Of course, you can be as involved in this process as you wish. If you have questions or concerns, you can contact our support team through phone or email 24/7. We are always available to help. GovDocFiling doesn’t just do business in Texas either. We can help your business grow with a Hawaii tax ID number and a Kansas tax ID number. If you’re ready to get started with your EIN in Texas, contact GovDocFiling today.

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