How to Get a Tax Number

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Obtaining a tax identification number is an important step in doing business. A tax ID number is needed to register a business, to prepare taxes and to pay taxes. The tax ID number is used by the government to keep track of your business.

Go to the IRS website. At the top of the page, there is a gray menu bar. Click on Business. Under Businesses Topics, choose Employer ID Numbers. In the middle of the next page, you will see the words Employer ID Numbers. Click on Apply for EIN Online.

Click Begin Application. On the first page it will ask you what type of business is being established. It also includes all of the descriptions for the types of businesses. Click on the choice that corresponds to your business structure.

Read the descriptions. Make sure you are selecting the correct choice. A sole proprietorship has only one owner and is not incorporated or registered as a LLC. This can be for a self-employed person or an independent contractor.

Decide why you need an EIN. On the next page there is a list of five reasons a sole proprietor may need an EIN. Those choices are: started a new business, hired employees, banking purposes, changed type of organization or purchased active business. Choose the choice that fits your situation and click Continue.

Fill out the information, including your name, Social Security number and address. Choose the appropriate answers and click Continue.

Choose how to receive your confirmation letter. You can either receive it online or in the mail. Click your choice and press Continue.