Texas Tax ID (EIN) Number Application Guide

Does your Texas business need a tax ID before you can begin operations? The answer is likely yes. To new entrepreneurs and business owners, the tax ID application process may look complex, but assuming you have the necessary information at hand, you could receive your tax ID in an hour or less. In this guide, we’ll walk you through the steps necessary to obtain a tax ID for any Texas organization, such as limited liability companies (LLCs), partnerships, nonprofits, and corporations. Very similar to the tax id obtainment process when applying for a tax id in Louisiana and Tennessee, we’ll also help you determine for sure whether you need one in the first place.


Steps to Getting a Texas Tax ID (EIN) Number

  1. Filling Out Your Tax ID Application
  2. Go Online for Your Texas Tax ID
  3. Use Phone, Mail or Fax for Your Texas Tax ID
  4. What’s the Best Way to Get a Tax ID Number in Texas?
  5. Do I Need a Tax ID Number in Texas?
  6. How Does a Business Obtain a Texas State Tax ID Number?

1. Filling Out Your Tax ID Application

No matter what, you’re going to have to fill out an application for your tax ID number, though this application varies slightly depending on which application method you use. This process registers your business with the federal government, so you’ll need to ensure this information is accurate.

It’s helpful to prepare the information in advance, so you can complete the application faster. You’ll need to record your full legal name, legal address, and social security number (SSN), as well as these pieces of information for all your business’s founding members (i.e., your partners).

2. Apply Online for Your Texas Tax ID

Most entrepreneurs want to get their tax ID number as quickly as possible, so they can begin operations and start generating revenue. If this is one of your goals, or if you’re interested in the most convenient process for getting your tax ID, it’s in your best interest to apply online.

Several application methods are possible to obtain your tax ID, but the online application method is unrivaled in terms of speed and convenience. Accessing the online form is possible using any device with an internet connection, and because the form is so easy to understand and fill out, it shouldn’t take you long to complete it. Most people can complete this portion of the process in just 5 minutes.

When you’re done with the application, you should receive your tax ID via email in under an hour. Compare that to the wait time you’ll face by following one of the older application methods; in these cases, you could be stuck waiting 4 to 6 weeks to get your tax ID by mail.


3. Use Phone, Mail or Fax for Your Texas Tax ID

We recommend all entrepreneurs use the online application to get their tax ID number. However, the online method isn’t the only method available. Older methods, which came into existence before the internet became popular, are still available for those who want to try them. For example, you can answer the application questions on a physical piece of paper, then mail or fax that form in. You could also answer the application questions in a kind of interview, with a live representative over the phone. These methods are significantly less convenient than the online application method, but the big drawback is how long they take to process. If you use one of these methods, you could wait 4 to 6 weeks to receive your tax ID.

4. What’s the Best Way to Get a Tax ID Number in Texas?

If you need to get a tax ID number for your Texas business, you’ll want to get it as quickly and conveniently as possible. No matter what, you’re going to follow the same basic, high-level steps: you’ll fill out an application, answering questions about you and your business partners, then wait to receive your tax ID after your application has been processed.

However, multiple different application methods exists, and some of them are strictly better than others. For example, you could apply for a tax ID in Texas using a traditional method, like applying by phone, mail, or fax, but these could leave you waiting 4 to 6 weeks to get your tax ID by mail. Instead, it’s typically better to apply for your tax ID number online, where you can complete the application in just 5 minutes and get emailed your tax ID within an hour.

5. Do I Need a Tax ID Number in Texas?

Do you really need a tax ID number for your Texas business? That depends, but most businesses will need both a federal tax ID number and a Texas state tax ID number. Your federal tax ID number is sometimes called an employer identification number, or EIN. It’s a 9-digit unique number assigned to your business when it registers with the federal government. You’ll need one of these if you’re hiring any employees, if you’re running a business with multiple members, or if you’re going to pursue any financial products (like a business bank account, loan, or line of credit). You may also need one to get a business license or permit in your area.

Your Texas state tax ID is important for state-level tax purposes. You’ll need one if you’re going to hire employees in the state of Texas, if you’re going to sell taxable products and services in the state, or if you’re going to owe excise taxes, which apply to some regulated goods like alcohol, tobacco, and gasoline.

6. How Does a Business Obtain a Texas State Tax ID Number?

If your business needs a Texas state tax ID number, you can get one by following a few simple steps. First, you’ll need to get a federal tax ID number. You can obtain this in under an hour by applying for your federal tax ID number online.

Once you have that, you can begin the application process for your Texas state tax ID. You’ll fill out a similar application, answering questions about your business and its founding members, and have the option of filing this application through a traditional method (like mail) or online. Applying for your Texas state tax ID is much faster and more convenient online, and is the recommended method for all business owners. When you’re done filling out the application, you’ll receive your state tax ID number in 4 to 6 weeks.