Apply for a Mississippi Tax ID (EIN) Number
To obtain your Tax ID (EIN) in Mississippi start by choosing the legal structure of the entity you wish to get a Tax ID (EIN) for. Once you have submitted your application your EIN will be delivered to you via e-mail.
Who Needs an EIN
You will need a Tax ID (EIN) in Mississippi if you:
- Have employees
- Operate your business as a Corporation or Partnership
- Operate as Trust, Estate or Non-Profit Organization
- File Tax Returns for Employment, Excise or Alcohol, Tabacco and Firearms
Mississippi Tax ID (EIN) Number and Business Registration
Looking to obtain your Tax ID (EIN) Number in Mississippi? This short Mississippi Tax ID application guide will walk you through everything you need to know about exactly how to obtain your Tax ID (EIN) number in Mississippi.
If you are looking to set up a new business organization in Mississippi, depending on the specific type of business entity, you will require a Tax ID Number. This is also known as the Employer Identification Number (or Taxpayer ID Number).
A Tax ID is a nine-digit number that is issued by the IRS to small businesses or individuals for a variety of reasons. For instance, a new EIN is required for opening a new bank account for your business.
Steps to Obtain a Tax ID (EIN) Number in Mississippi:
- Register a Business & Choose Structure
- Obtain a Tax ID (EIN) Number
- Obtain a State Tax ID
- Local Licenses & Permits
Register a Business and Choose Structure
What might initially feel like a challenging task could be achieved with relative ease provided you have selected the right kind of business which is best-suited to your needs. It is crucial to take into account all the possibilities when you choose your business structure.
You can conduct business in Mississippi using a variety of different entities, which might require you to register with the Mississippi Secretary of State. Each business structure has some benefits and drawbacks.
- Sole Proprietorships – One person operates and owns a business in a sole proprietorship. As sole proprietorships are not incorporated, they have no filing requirements. The sole owner is liable personally for the obligations and debts of a business. In most cases, earnings are usually taxed as personal income of the owner.
- General Parnterships – In this structure, two or more individuals run a business. There are no filing requirements with the Secretary of State to form this kind of entity. A majority of general partnerships often draft a partnership agreement, delineating the responsibilities and rights of each partner.
- Limited Liability Companies (LLC) – Most limited liability companies are owned by multiple persons and owners are known as “members.” Incorporating an LLC requires that you file a certificate with the Secretary of State known as Certificate of Formation. Earnings of LLCs are taxable in various different ways. Limited liability companies usually have much fewer record keeping requirements compared to corporations. Mississippi has one of the most comprehensive and modern LLC statues in the US.
- Corporations – Corporations are owned by one or multiple individuals and owners are known as “shareholders.” Corporations are formed by filing an article of incorporation with the State Secretary. Corporations are run according to a strict set of rules which are called “bylaws”. They are drafted by a company and then adopted by its shareholders. However, you do not have to file bylaws with the State.
Obtain a Tax ID (EIN) Number
What is a Tax ID (EIN)?
A Tax Identification Number, also called Employer Identification Number (EIN), is used by Internal Revenue Service for identifying your business entity. Generally, almost all businesses require an EIN. You can apply for your Mississippi EIN in different ways, including applying online. EIN number is required to perform the following:
- File annual tax returns
- Open business bank accounts
- Hire employees
- Obtain local business licenses and permits
Who Needs a Tax ID (EIN) Number?
Most business organizations need a Mississippi Tax ID. These include private and public companies, non-profit organizations as well as churches, trusts and estates. Even if a business entity isn’t required to apply for a Tax ID in Mississippi, keep in mind that obtaining it is advisable as it could help protect your personal information as a business owner. This is because you can use your Tax ID rather than your SSN in several activities vital to operating and managing your business organization, which includes obtaining local Mississippi permits and licenses.
What Information do you Need to Apply?
To successfully complete and file the online Tax ID Number Application, you need the following details:
- Name of your business entity
- Your business address
- Your email address and phone number
- Names of responsible parties (people who will be the responsible parties for your business entity)
Obtain a State Tax ID
After you obtain a Federal Tax ID Number, your business may also need to get a Mississippi Tax ID as well. This “state level” Tax ID is required to pay business tax, state income tax and/or sales tax on the products that your business sells. In general, a Mississippi State Tax ID is necessary for the following:
- Sales and Use Tax
- Employee Income Tax Withholding
- Sales Tax Exemption Permits
- Excise Taxes for items such as heavy machinery, Tobacco, Alcohol, Firearms, Oil and Gas, etc.