IRS EIN / TAX ID APPLICATION (2024)Apply for a Texas Tax ID (EIN) Number
To obtain your Tax ID (EIN) in Texas 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 Texas 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
Texas Tax ID (EIN) Number and Business Registration
Registering a business and applying for a Tax ID number are the first steps towards officially starting a business. Without this information, you won’t be able to do simple things such as apply for a business loan or open a business bank account. Texas is one of the best places in which to open a business — but you may need a little help filing your initial documents. Texas is one of the fastest growing economies in the United States. Dallas has been ranked as the 4th most entrepreneurial city in the United States as well as the 5th best city for startups, with Austin close behind in 8th place. Business Insider chose Texas as the 4th best state in which to open a business, as a state that is high in economic activity but nevertheless low in cost of living.Texas Business Registration
Registering a business requires first that you know the type of business entity that you’re registering. Business entities include: sole proprietorships, general partnerships, limited partnerships, non-profit corporations, and limited liability companies. It’s imperative that you choose the right business entity. Some business entities offer you protection from liability, while others do not. Some business entities will “pass through” income directly to you, so you are taxed on it once — other business entities will be taxed on their own revenue and then you will be taxed on money paid out to you. Getting professional help at this stage is important — not only do you need to protect yourself, but you also need to ensure that you are compliant with all federal and state laws.Obtain a Federal Tax ID (EIN) Number
A federal tax ID number is going to be needed on all your official documents. Also known as an employer identification number (EIN), it registers your business with the Internal Revenue Service. A Federal Tax ID number will be used by the IRS to identify your business, document your taxes, and identify your relationship to your employees. While applying for a Federal EIN (FEIN) number, you will be asked questions regarding your business structure and your personal information. Now you can obtain your Federal Tax ID number online.Texas State Tax ID Number
In addition to a federal tax ID, you also need a Texas State Tax ID number in order for you to collect sales tax and pay sales tax to the state. A Federal EIN is necessary to complete the process of getting a Texas State Tax ID, though you may be able to get a temporary provisional one beforehand.Texas Local Licenses and Permits Overview
Every city and county in Texas may have varying requirements for business licenses and permits, and thus it’s critical to get help early on in the process. In addition to registering your business with Texas, you may also need a license or permit for industries such as construction, bail bonding, or providing medical services. Common requirements in Texas include:- Sales tax permits.
- Franchise tax permits.