Looking to obtain your Tax ID (EIN) Number in Arkansas or forming an Arkansas business? This short Arkansas Tax ID Application Guide will walk you through the basic steps you need to follow to apply for your Tax ID (EIN) Number in the state of Arkansas. Whether you own a Partnership, multi-member Limited Liability Company, Corporation, Non-Profit, Trust or Estate, this guide will help you learn what you need to know to obtain your official IRS Tax ID Number within minutes.
- Prepare Required Information
- Apply for a Arkansas Tax ID Online
- Apply for a Arkansas Tax ID by Phone, Mail or Fax
- Do I Need a Business License in Arkansas?
- What’s the Difference Between a Federal Tax ID and an Arkansas Tax ID?
- How Do I Get an Arkansas State Tax ID Number?
When you apply for a tax ID, you’ll need to answer several questions about your business, including questions about your founding members. Therefore, if you want to fill out the application as quickly and as smoothly as possible, it’s ideal to gather the information you’ll need for that application before you start filling it out. For starters, you’ll need the full legal names and legal addresses of all your founding members, including yourself and any business partners you have. You’ll also need to gather their social security numbers, since this process will register your business partners with the government.
When you’re ready to begin the application, you’ll have several options and mediums to choose from. For example, you could choose a traditional method, like applying for your tax ID via phone, mail, or fax. However, it’s much better to apply for your tax ID online. Applying online is much faster and more convenient for the majority of people. You can access the online application from any device that has an internet connection, and conveniently answer the application questions by filling out the digital form. Because it’s so intuitive, and because you’ll have already prepared the information, it should only take you 5 minutes to finish the EIN number application.
After that, you’ll receive your tax ID via email, which should take less than an hour after finishing the application. This makes the online application method much faster in terms of turnaround, and ideal for any business owner who wants to get their business started as quickly and efficiently as possible.
Even though applying for your tax ID online is faster, more intuitive, and more convenient for most people, other, more traditional application methods do exist. You can, for example, apply for your tax ID via mail or fax- for these methods, you’ll need to fill out a paper application by hand, then mail or fax that application in. You can also speak to a representative and answer the application questions over the phone, almost like an interview.
The real downside of these methods is the time it takes for them to produce a tax ID. After finishing the application, you’ll be forced to wait something like 4 to 6 weeks to get your tax ID via mail.
If you’re starting a business, you might wonder whether you need a formal business license, or some kind of permit, to operate legally. Arkansas doesn’t require its businesses to apply for a general license to operate, but your business may be required to get a license or permit depending on where it’s located, what industry it’s in, and how it’s functioning.
Most business licenses are regulated and distributed at a local level; you’ll need to look up regulations at a city or county level, consulting with your local Chamber of Commerce to learn more about what’s required for a business like yours. Certain industries are more heavily regulated than others, with industries like healthcare, construction, and gambling requiring more licenses and permits than other types of businesses.
In any case, if you’re going to apply for a business license of any type, you’ll need a tax ID in place first. Your tax ID serves as a unique identifier, not unlike a social security number, and it’s a requirement for most business license applications in the state of Arkansas.
If you’ve heard or used the general term “tax ID,” you were probably referring to the federal tax ID number, also called an employer identification number (EIN). However, your Arkansas business might also need what’s known as an Arkansas state tax ID, sometimes called a sales tax ID.
Your federal tax ID is a unique identifier that registers your business with the federal government. It’s necessary if you’re going to be hiring employees, or if your business has more than one member (like a partnership, LLC with multiple members, or corporation). You’ll also need one if you plan to get a business bank account or apply for business credit, and of course, you’ll need one if you’re going to get a business license or permit to operate in Arkansas.
An Arkansas state tax ID is similar to a federal tax ID, but it applies at the state level. You’ll need one if you’re going to hire employees in the state of Arkansas, if you’re going to sell taxable goods and services in the state of Arkansas, or if you’re going to owe excise taxes, which apply to certain regulated products in Arkansas, like gasoline, alcohol, or tobacco.
You’re going to need an Arkansas state tax ID number if you’re hiring employees in the state, or if you’re going to owe sales taxes or excise taxes to the state of Arkansas. Before you get this number, it’s a good idea to get your federal tax ID first.
Once you have that, you’ll have the opportunity to apply for your state tax ID in one of several methods, just like with your federal tax ID. And as with the federal tax ID, it’s best to apply online. Traditional methods like phone, mail, and fax are too slow and too inconvenient to be reasonable recommendations, but you should be able to fill out the Arkansas state tax ID fairly quickly. Do note that even if you apply online, the waiting time for a state tax ID is longer- sometimes up to 4 to 6 weeks.