Are you starting a business in Tennessee? If so, you may need to apply for a tax ID (EIN). Applying for a tax ID number is simple, but if you haven’t done it before or if you’re operating on a tight timeframe, you might not know where to start. This guide is written to help owners of sole proprietorships, partnerships, LLCs, corporations, nonprofits, and other business entities apply for the tax ID they need as quickly and efficiently as possible in the state of Tennessee. Even though the process is similar in other states to obtain a tax id in New Hamshire and Illinois, this Tax ID Obtainment Guide below will explain everything you need to know to get your tax id prompty and securely online.
Let’s walk through the steps necessary to get your tax ID.
Steps to Get a Tennessee Tax ID :
- Gather All Required Information
- Get Your Tennessee Tax ID Online
- Get Your Tennessee Tax ID via Phone, Mail or Fax
- How to Get a Tax ID Number for Your Tennessee Business
- If You Have a Federal EIN, Do You Need a State EIN?
- How Do I Get a Tennessee State Tax ID Number?
No matter how you approach the tax ID application process, you’ll need to provide several key pieces of information on you and your business partners. To save time, it’s a good idea to gather these pieces of information in advance.
Talk to your founding members and be sure to jot down their full legal names, legal addresses, and personal social security numbers (SSNs). You’ll need to provide these data points in your tax ID application, but they shouldn’t take long to gather. The sooner you can start your application, the sooner you’ll get your tax ID.
Tennessee businesses have a vested interest in getting their tax ID as soon as possible. Getting your tax ID faster means starting your business and generating revenue faster. While there are many methods of applying for your tax ID, some of them are demonstrably quicker than others.
For example, you could apply for a tax ID using a traditional method like phone, mail, or fax, but these frequently take up to 4 to 6 weeks to return your tax ID. Instead, it’s better to use the online application. It’s possible to apply for a tax ID using nearly any digital device, and the online form is simple and easy to understand.
If you’re prepared, the online application should only take 5 minutes to complete. When you’re finished, you’ll be emailed your business’s new tax ID in an hour or less, making this by far the fastest application method.
Applying online is fast and easy, but it isn’t the only method that exists. There are also several traditional avenues you could use to obtain your tax ID number. For example, you could answer the application questions over the phone, speaking with a human being and responding to their prompts. You could also fill out a paper application, then mail or fax it in. The problem with traditional application methods is the time they take to complete. While applying online can return a tax ID to your business in as little as an hour, traditional application methods take 4 to 6 weeks, on average.
If your Tennessee business needs a tax ID number, there are several methods you can use to obtain it. No matter what, you’ll need to answer a basic questionnaire with information on you, your business, and your founding members (such as your partners).
The exact method you use, however, is up to you. There are traditional application methods available, like applying over the phone or by mail, but these were devised before the internet rose to prominence, and have since been outclassed by the online application method.
Applying for your tax ID number online is much more convenient than any other method, and can be completed in just a few minutes. However, the biggest benefit of applying online is the time it takes to get your tax ID back to you. Instead of taking 4 to 6 weeks, the online application can finish processing in just an hour, at which point you’ll receive your tax ID via email.
Your tax ID usually refers to your federal tax ID. This 9-digit number is also sometimes called an employer identification number (EIN) or federal employer identification number (FEIN). This number is distinct from your Tennessee state tax ID number, and these two numbers are used for different purposes. In many cases, you’ll need both a federal EIN and a state tax ID number.
For example, you’ll need a federal tax ID number if you’re going to hire employees, or if your business includes multiple members. This number is a requirement if you’re applying for a business license or permit as well. And if you’re going to open a business bank account or get a loan for your business, you should have a tax ID, and may be required by the lender to have one.
Your Tennessee state tax ID number is a requirement if you’re selling taxable goods and services in the state. You also need to have a state tax ID number if you’re hiring any employees in the state of Tennessee, for state-level tax purposes. In other words, a federal EIN may not be enough for all your business’s needs.
Tennessee businesses will need a Tennessee state tax ID number if they’re going to hire employees in the state or if they’re going to sell taxable goods and services. So how can they obtain this number?
The first step is to get a federal tax ID, which you can obtain by applying online. In fact, if you use the online application, you can get it in an hour or less. From there, you can use a traditional application method for your state tax ID or apply online. Either way, you’ll need to answer a few questions about your business and its founding members.
Applying for your Tennessee state tax ID number online is much more convenient and should help you get a tax ID faster. The form is easy to navigate, and shouldn’t take you long. From there, you’ll receive your state tax ID in 4 to 6 weeks.