Federal and State EIN Overview
An Employer Identification Number (EIN) is a nine-digit number used by the Internal Revenue Service (IRS) to identify a business. The EIN will never expire and is never duplicated, even if you go out of business.
Massachusetts Tax ID and EIN Costs
Federal EIN: Free of Charge
- Apply for business licenses or permits.
- Handle employee payroll.
Applying for an EIN for your Massachusetts LLC is completely free. You can apply for a federal EIN on the IRS website. An EIN is used by several government agencies to identify your LLC. Once you’ve received your EIN from the IRS, you can register your business with MassTaxConnect.
State Tax ID
- Obtain a state sales tax number for businesses selling goods or services in Massachusetts.
- Get a state tax ID number from the Massachusetts Department of Revenue.
Applying for an EIN Online
To apply for a Massachusetts EIN number, you need to gather information about your business. Then, fill out a short application which you can submit online or through the mail. An EIN is also known as FEIN (Federal Employer’s Identification Number). If you apply online, you can get your company’s EIN in about five minutes.
Cost Implications
An EIN, or an employer identification number, is a type of tax ID issued to businesses as a separate tax entity from individuals. Most LLCs need an EIN for tax purposes, bank account opening, and hiring employees. The 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.
Obtaining an EIN in Virginia
The steps to follow when obtaining an EIN in Virginia are:
- Don’t apply for an EIN until your Virginia LLC is approved.
- Know how many LLC Members you have before you apply.
- Once your information is validated, your EIN is assigned immediately.
If you’re wondering how much an EIN costs, it’s good to know that the IRS does not charge any EIN Application fee.
Application Process
You may apply online if your principal business is in the U.S. or Territories. Understand the online application limitations and complete your application without pausing too long to avoid a session reset. After you submit your application, you’ll receive your EIN if you have a Social Security Number (SSN) or Individual Tax Identification Number (ITIN). If not, a paper EIN application is required.
Conclusion
Most businesses need an EIN. While the process to get a free EIN is straightforward, you’ll need to figure out many details about your business. Paying a service company can ensure acceptance and avoid complications.