Your Oregon business probably needs a tax ID number to operate legally, but do you know how to get one efficiently? The majority of businesses in Oregon will be legally required to have a tax ID number, including limited liability companies (LLCs), corporations, and even simple business entities like sole proprietorships and partnerships. Fortunately, it’s easy to get a tax ID number for your business, and register your business with the government to do it. Similar to the process of obtaining a Tax ID in California or a North Carolina tax id, this thorough Tax ID guide will teach you everything you need to know to apply online.
Steps to Get an Oregon Tax ID Number
- Gather the Required Information for Your Tax ID Application
- Applying for an Oregon Tax ID the Modern Way: The Online Application
- Old Methods to Apply for an Oregon Tax ID
- Is a Business ID Number (BIN) the Same as a Tax ID Number?
- Do I Need an Oregon BIN?
- How Do I Get an Oregon State Tax ID Number?
Getting a tax ID requires you to register your business with the government. To do this, you’ll need to fill out a brief questionnaire, answering questions about both your business and the founding members who intend to create it. You can complete this part of the process faster if you have the right information on hand already. To complete the application, you’ll need to provide the full legal names and legal addresses of all founding members, including you and all your partners. You’ll also need to provide their social security numbers (SSNs).
There are several different ways for you to access and fill out the tax ID number application, but some are better than others. Most of the available methods are traditional, existing before the advent of the internet. As you might expect, these methods are obsolete compared to the online application method.
Applying online is both faster and easier than all other traditional processes. You can access the form at any time, and any day, so long as you have a device with an internet connection. The form itself is highly intuitive, so you shouldn’t have any problems completing it. If you’ve already gathered the requisite information on your business and your business partners, you should be able to finish the application in just 5 minutes.
When you’re done, you’ll submit the application, and within an hour, you’ll receive your tax ID number within an hour, via email. This is much faster than traditional methods, which often take 4 to 6 weeks.
It’s much better to apply for your tax ID number online, due to its accessibility and turnaround time. However, there are some other methods for you to consider. For example, you could apply over the phone; in this method, you’ll answer the same questions about your business, but with a live representative, on a phone call. You could also complete a paper application, assuming you can track one down, then mail or fax it in. The big problem with these methods is that they take 4 to 6 weeks, delaying the start of your business unnecessarily.
You might hear references to a business ID number for your Oregon business, and wonder whether it’s identical to your tax ID number. The short answer is no, these are actually two different numbers. When people use the phrase tax ID, they’re usually referring to a federal tax ID number. This is a unique identifying number (not unlike a social security number) assigned to companies when they register with the federal government. This is also called an employer identification number, or EIN.
You’ll need an EIN if your business is going to have multiple members, or if you plan on hiring employees. You’ll also need one if you’re going to open a business bank account, or apply for financial products like loans or lines of credit. It’s also important to get one if you need to apply for any business licenses or permits.
By contrast, your business ID number (BIN) in Oregon is another name for an Oregon state tax ID. This, too, is a unique number assigned to your business, but it’s assigned by the state government of Oregon, and is used for entirely different purposes.
Does your business really need an Oregon BIN? Remember, this is a state-level tax ID number distinct from your federal tax ID number. There are several conditions that could require you to have one, and most Oregon businesses will need one for one reason or another.
You’ll be required to get an Oregon BIN if you’re hiring employees in the state. This number is also used for Oregon state-level tax purposes, so you’ll need one if you’re going to sell taxable goods and services in the state. You may also need one for some state-level licenses and permits, and if you’re going to owe excise taxes, which apply to some regulated products.
Note that some of these requirements do overlap with the requirements for a federal tax ID number; for example, if you’re hiring employees in Oregon, you’ll need both a federal-level and state-level tax ID number for your company. Most Oregon businesses will need both ID numbers to operate legally.
Assuming your business needs an Oregon state tax ID number (BIN), how should you go about getting one? For starters, you’ll need to have a federal tax ID number in place. If you don’t have one yet, you’ll be glad to know the process is easy if you apply online. After filling out a short questionnaire, you’ll receive your tax ID number in an hour or less.
Once you have a federal tax ID number in place, you can start the application process for your Oregon state tax ID number. Like with your EIN, there are several potential application methods, including old methods like applying by fax, by mail, or over the phone. However, it’s much more favorable to apply online. The online application is easy to access and straightforward to understand, and you can probably complete it in a matter of minutes. Once submitted, you’ll receive your Oregon state tax ID number in just 4 to 6 weeks.