Obtaining a Federal Tax ID Number
A federal Tax ID number is a nine-digit number issued by the Internal Revenue Service or Social Security Administration. Anyone who needs to pay taxes must have a Tax ID Number (TIN). You can get a TIN by:
- Applying for a Social Security Number by completing Form SS-5.
- Getting an Employer Identification Number (EIN) to identify a business entity.
- Applying for an Individual Taxpayer Identification Number (ITIN).
Obtaining an Employer Identification Number (EIN)
To apply for an EIN, submit your business information on the IRS website or contact the IRS at 310-455-6675. The service is free. If you have multiple sole owner businesses, you still must get a separate EIN for each.
EINs are used to:
- Open LLC business bank accounts.
- File business tax returns.
- Apply for business licenses and financing.
Texas Tax ID Process
Texas has its own process for sales tax permits and tax exemptions. To apply, submit Form AP-204 to the Texas Comptroller’s office. A federal tax-exempt status letter from the IRS must be included. Sales tax permits are free in Texas. Sellers are required to have a Texas sales tax permit for online and in-person sales. To register a business in Texas costs $300 for a corporation, $200 per partner for an LLC, and $25 for a DBA. Sole proprietors must provide their Social Security number. Other entities must provide their federal EIN.