Each state has different requirements for aspiring entrepreneurs. If you plan to start a business in Indiana, you'll need a state tax ID number. This unique identifier is needed for paying taxes, hiring employees, filing credit applications and obtaining business licenses. Applying for an Indiana taxpayer identification number is free and takes just a few minutes.
TL;DR (Too Long; Didn't Read)
Aspiring business owners can obtain a tax ID number in Indiana by filling out an online application. The application is processed within six weeks.
What Are Tax Identification Numbers?
A tax identification number, or TIN, is a unique identifier assigned to U.S. businesses and other entities, including trusts, estates, limited liability companies, partnerships and corporations. Sole proprietorships may need this number as well under certain circumstances. There are three different types of TINs, but they all serve similar purposes:
- Social Security numbers are assigned to U.S. citizens and U.S. residents.
- Employer identification numbers are assigned to businesses, nonprofits and other legal entities.
- Individual taxpayer identification numbers are assigned to individuals who don't have a SSN or who are not eligible to obtain one, such as nonresident aliens who are required to file U.S. tax returns.
As a business owner or aspiring entrepreneur, you'll need an employer identification number, or EIN. Sole proprietors may use their SSN to pay taxes. However, they may require an EIN if they have a 401(k) or Keogh retirement plan, hire employees, form an LLC or file for bankruptcy. This nine-digit number can help protect your personal information and make it easier to open a business bank account, among other perks.
Indiana Taxpayer Identification Number Application
Business ownership comes with its share of responsibilities. You need to keep an eye on your competition, make a list of performance goals and objectives, supervise your employees, market your products and more. Before getting started, though, it's necessary to legalize your business and obtain certain permits and licenses.
If you're planning to start a company in Indiana, you must pay taxes at the state and federal levels. Business owners can obtain an Indiana taxpayer identification number from the state's department of revenue. The EIN, on the other hand, is assigned by the IRS. To apply for a TIN, register online as a new business via IN.gov and complete the Business Tax Application (BT-1) form, which requires the following information:
- Your email address
- Federal identification number or EIN
- Indiana TID number (if applicable)
- Business name and contact details
- Type of organization
- State of incorporation and other relevant information for corporations registered in other states
- Business trade name (if applicable)
- North American Industry Classification System code
- Indiana Secretary of State control number (except for general partnerships and sole proprietorships)
- Type of tax for which you are registering
Answer all applicable questions, submit the BT-1 form and print a copy. Nonprofit organizations must file Form NP-20A to obtain a TIN. Your application will be processed within six weeks, and once registered as a business, you will be assigned a tax ID number. If you need help filling out the form, call 317-232-2337 between 8 a.m. and 4:30 p.m. on weekdays.
What Other Documents Are Needed?
Applying for an Indiana taxpayer identification number is just one of the many steps required to start a business. Depending on what products and services you offer, you may also need to pay sales tax, use tax, withholding tax, alcohol excise tax and more. For example, if you rent heavy equipment, there's a tax for it. Also, be aware that it's required to file the BT-1 form for each business location.
This state has over 400 different licenses and certifications applicable to running various businesses. You may contact the State Information Center at 317-233-0800 to inquire about the business licenses required in Indiana.
Additionally, some professions are strictly regulated by state boards and commissions, such as the Board of Medical Licensing and the Engineers Registration Board, so make sure you achieve legal compliance before opening your doors to the public.
- Indiana Department of Revenue: Online Business Tax Application (BT-1) Checklist
- State of Indiana: Business Owner's Guide
- Indiana Department of Revenue: Manage, File and Pay Indiana Business Taxes
- State of Indiana: Secure State TIN and Federal EIN
- State of Indiana: Business Owner's Guide - Taxes
- IRS: Employer ID Numbers
- Investopedia: Taxpayer Identification Number (TIN)
- FindLaw: Do I Need a Tax ID Number for My Business?
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