Whether you are just starting to work in the United States, or are starting a business, you will need a tax identification number to operate under the law. Here is what you need to know about obtaining your Tax ID Number for yourself or for a new company:
Personal Tax IDs: If you are a US resident, your tax ID number is usually the same as your social security number, which can be found on your social security card. You may also find your social security number on previous tax forms. To apply for a social security number, you must complete an application entitled Form SS-5. If you are not a resident, you may need an Individual Taxpayer Identification Number or ITIN. To obtain an ITIN, you must complete and submit the W-7 form.
Business Tax IDs: Most businesses are required to file for an Employer Identification Number, or EIN with the IRS. The EIN functions much like a social security number for that business and will be used to identify your company for tax purposes. If you are starting a business, you must obtain an EIN for that business even if you already have a personal Social Security Number. The EIN can be obtained by submitting Form SS-4.
How to Get A Federal Tax ID Number: Most forms can be submitted by fax, mail or submitted online. Keep in mind that each application must be processed and that faxing or mailing a form can add an additional two to four weeks to your wait time. If you need to get your Tax ID quickly, the fastest way to do so is to submit the necessary form online.
When it comes to taxes, it is best to start early. No matter which type of Tax ID you require, you should aim to file the paperwork before the actual start of the tax season.