Federal and State Tax ID Numbers
In Indiana, the majority of businesses will require a federal tax ID number, which can also be identified as an employer identification number (EIN). This 9-digit number is assigned to your business for identification and tax purposes. There are two different types of Tax IDs you will likely need: a Federal Tax ID (EIN) and a State Level Tax ID.
GovDocFiling can simplify the process of obtaining your EIN, which is necessary for filing business taxes, hiring employees, and opening business bank accounts. By utilizing their services, you can have your business registered with the federal government in a matter of hours.
Do You Need an EIN?
Businesses typically need an EIN if they plan to hire employees, open business bank accounts, or apply for business loans. This applies to various business structures, including partnerships and corporations. The cost of acquiring a tax ID number is $0, as the IRS does not charge for EIN applications.
- Apply for an EIN to open a business bank account and file business tax returns.
- An EIN is crucial for your business, functioning like a Social Security number.
State Requirements
Indiana requires a state tax ID number for selling taxable goods or services, registering for excise taxes, or if hiring employees. It’s essential to apply for a state tax ID number if any of these apply to your business.
- For your business needs in Indiana, ensure an LLC member applies for an IRS EIN through GovDocFiling.
- You need a new state tax ID number when relocating to another state, but your EIN remains the same.
Applying for an EIN
You’ll receive your Tax ID Number typically within 2-3 hours after completing the online registration. Should you need assistance, you can contact the agency at (317) 233-4016.
Required Documentation:
To obtain an Indiana State ID Card, you will need:
- An Employer ID Number (EIN) identifies your LLC with government agencies.
Key Tax Documents:
Some vital tax documents and permits for starting a small business in Indiana may include:
- DBA Certificate
- Corporation or LLC paperwork
Indiana Tax ID vs. EIN
An Indiana tax ID number is distinct from an EIN, as the latter is a federal number. A sole proprietorship without employees or taxable sales, and with no intent for business-owned bank accounts, doesn’t require one.
The EIN confirmation letter will list your EIN number, and once you have your federal tax ID, you can proceed to obtain an Indiana state Tax ID. Consult with a professional, such as a lawyer, bookkeeper, or accountant to assist in this process. The IRS issues EINs to ensure that businesses are identified separately from individuals, and this number does not change even when moving across state lines.