Get a Tax ID Number in USA

Get a Tax ID Number in USA

Do you wish to start your business in the United States? If you shook your head in approval, then you are not the only one. Almost every other person wishes to start a business in the US; after all, it is golden state which provides a lot of lucrative opportunities for people. Also, most of the established and famous companies and big brands such as Google, Apple Inc. and Ford have headquarters in the United States.

If you need help getting a tax id number in the USA please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

But to form a business in the United States, business owners need to get a tax ID number in USA for filing taxes and returns along with various other responsibilities. However, to get a tax ID number in USA means to get involved in a lengthy and complicated procedure. Also, if a business owner needs to develop and direct an organization smoothly, they must get a tax ID number in USA beforehand to avoid any issues.

To get a tax ID number in USA, you need to understand that there are 3 types of tax ID numbers in general. In addition to that, all three of them can be obtained from different procedures. If you are thinking of how to get a tax ID number in USA, then you will get to know about it all in this blog.

What Exactly are Tax ID Numbers?

Before we take the plunge of explaining exactly how to get a tax ID number in USA, you must first understand what tax ID numbers are exactly. Tax ID numbers are normally issued by the Internal Revenue Services to the business owners and often the ones who are just living in the United States but are accountable to pay taxes. Issued either by the Social Security Number or the Internal Revenue Service, any of the tax ID numbers are a must for residents of the United States. If you really want to understand the process of getting tax ID numbers in USA, understand the types of tax ID numbers first.

Types of Tax ID Numbers

Tax ID numbers have 5 types in general. Among those five types, only three of them are permanent and active while the rest of the two are temporary, which is why they are not issued by the Internal Revenue Service anymore. Therefore, we will only focus on the first 3 types;

  1. Social Security Number – SSN
  2. Individual Taxpayer Identification Number – ITIN
  3. Employer Identification Number – EIN
  4. Taxpayer Identification Number for US Adoptions (ATIN)
  5. Preparer Taxpayer Identification Number (PTIN)

First Understand When You Need Tax ID Numbers

While you may be thinking of how to get a tax ID number in USA, you also need to understand when you need a tax ID number or whether or not you need it. Tax ID numbers are normally given to the residents of the United States to file returns, statements and tax related matters. Mainly, it is provided to individuals or business owners because of the following 2 reasons;

  • It is furnished to people when they need to file tax returns, and
  • It is provided to people when they need to claim their treaty benefits

If you have to perform any of the mentioned activities, then you should get a tax ID number in USA. But before we understand the entire process to get a tax ID number in USA, you must understand about the ins and outs of the types of Tax ID numbers.

1.    Social Security Numbers – SSNs

One of the most common types of Tax ID numbers is the Social Security Number (SSN). These numbers are commonly issued to individuals by the Social Security Authority. These numbers include 9 digits. The individuals who wish to get a job or work as an employee for a company in the United States are given Social Security Numbers (SSNs). Normally, these individuals also have an E2 visa.

Also, to get a tax ID number in USA, you must understand that these numbers are only given to the permanent residents of the United States, while the temporary ones get it rarely or are given ITIN numbers. By filling the SS-5 form properly, you can get this tax ID number easily. The United States Citizenship and Immigration Services (USCIS) is responsible to find whether or not the information is genuine in order to grant an SSN number to an individual.

2.    Individual Taxpayer Identification Number – ITIN

To get a tax ID number in USA, you need to know that there is another common type of tax ID number too, that is the Individual Taxpayer Identification Number (ITIN). Just like the SSN number, the ITIN number also has 9 digits and it is granted to dependent individuals only. Dependent individuals are the ones who are residing in the USA without any E2 visa. This means that they are living as a family of the principal investor in the USA.

Such individuals need to get ITIN number for their tax obligations. However, this form of tax ID number does not make them eligible to work in the United States. For that, they need to have an E2 visa. This tax ID number just permits them to fulfill the tax obligations while enjoying the treaty benefits. Individuals who are not eligible for the Social Security Number (SSN) are given an ITIN number. By filling a w-7 form along with the genuine information, you can get an ITIN number in the USA.

3.    Employer Identification Number

The last active tax ID number is called the Employer Identification Number (EIN). This number is also popularly known as the Federal Tax ID number. It also contains 9 digits just like the Individual Taxpayer Identity Numbers and Social Security Numbers. But unlike both of them, this form of tax ID number is provided to the individual who wishes to start a business in the United States. All those individuals who wish to get a tax ID number in USA, especially the EIN number, may be interested in forming a business of their own in the USA and not getting employed in a US firm.

In addition to that, this form of tax ID number is issued by the Internal Revenue Services (IRS) to file the tax returns for the business entities. No matter what type of business an individual wants to form such as sole proprietorship, partnership, corporation, no profit organization or any other, you are liable to have an EIN number for the taxation purposes. By filling form 1041 along with the information of the individual, you will be given EIN number easily.

If you need help getting a tax id number in the USA please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

How to Get a Tax ID Number in USA?

Now that you have understood the types of all the tax ID numbers in USA, here is what you need to know about how to get a tax ID number in USA including all the three types. As mentioned above, all three of tax ID numbers have a different procedure. Let’s see what each one of them includes.

What is the Procedure to Obtaining a Social Security Number – SSN?

To get a tax ID number in USA is not an easy task. Though the procedure is not very lengthy, it comes with some complex matters involving legalities. In order to obtain an SSN number, you need to follow the steps below;

·       Step # 1: See Whether or Not You Are Eligible

Residents of the United States as well as the non-residents of the United States are eligible to obtain the Social Security Number. If you reside in the US and are required to pay taxes, then you do need an SSN number. So, before obtaining an SSN number, you should understand and see to this aspect.

·       Step # 2: Gather Documents

To get a tax ID number in the US, it is quite necessary to gather all the documents for Social Security Requirements. Similarly, you do require some set of documents to obtain an SSN number. You need to ensure that all the documents must be original and must be certified by the issuing agency. You should have the following documents With you;

  • Birth certificate
  • Proof of citizenship
  • Proof of identity

·       Step # 3: Fill Application Form

The main part is to fill a form for the SSN number which will ultimately help you in obtaining the SSN number. You need to take a print out of form SS-5 and fill it with your complete details. Also, if you are unable to print it, you can visit your nearest Social Security Office to get it printed. The form will cover all your genuine information. You should check out the instructions on the form and fill it accordingly.

·       Step # 4: Submit the Form

When you are done filling the form, you need to submit it to the Social Security office. You can do this either by mailing, fax or applying online at the social security office. When you are done, do not forget to inform your employer! Within a few days or weeks, you will receive the SSN number via mail, fax or online, depending upon the method you have used.

What is the Procedure to Obtaining an Individual Taxpayer Identification Number – ITIN?

If you want to get a Tax ID number in USA, specifically the ITIN number, then you need to follow the steps below;

·       Step # 1: Determine the Eligibility

The first and foremost thing to obtain an ITIN number is to determine your eligibility. Normally, ITINs are for those individuals who do not qualify for SSNs but are accountable to file taxes. These types of individuals include the following;

  • A resident of the United States who is required to file the US tax returns.
  • Non-resident aliens required to file tax returns in the United States.
  • Individuals who cannot be issued the SSN number.

·       Step # 2: Fill Form W-7

If you want to get an ITIN, then you need to know about the next step which is the core of obtaining a tax ID number. You need to get a printed copy of form W-7 from the Internal Revenue Services’ (IRS) website. You must read out all the instructions before filing out the form to know how to fill the form correctly. If you still have difficulty in understanding the form, you should coordinate with your nearest local attorney.

Along with the form, you must also submit some required documents which are listed under;

  • Original documents proving your identity
  • Valid federal income tax return
  • Documents establishing your foreign status

If you need help with your application, you need not worry. You can always seek help from the IRS representative by calling at 1 800 829 104 if you living in the United States. Those who are living outside the United States and wish to get a tax ID number in USA, they need to call 267 941 1000 for help if needed. Also, if you are unsure about how to fill the document, then you should keep in mind that the IRS offers in person document review sources at several locations. By visiting anyone of them, you can get your form W-7 checked and verified.

·       Step # 3: Submit the Form

After filing the W-7 form and gathering all the necessary documents, you need to mail the form to get the tax ID number in USA. Mailing your form at the following address will help you in receiving your ITIN number within 7 weeks.

Internal Revenue Service

Austin Service Center

ITIN Operation

P.O. Box 149342

Austin, TX 78714-9342

What is the Procedure to Obtain an Employer Identification Number – EIN?

To get a tax ID number in USA, you need to understand it properly. The Employer Identification Number (EIN) is only provided to the individuals who wish to start a business, be it a sole proprietorship business, partnership, corporation or a non-profit organization. No matter what kind of business you wish to start in the United States, you need to get a tax ID number in USA anyway. If you really want to get a tax ID number in USA (EIN number) then you have to follow the steps listed below.

·       Step # 1: See If You Are Eligible

The firsts step to get a tax ID number in USA, especially an EIN number, is to see if you are eligible for the EIN number or not. If you are starting a business, then you would need an EIN number. If you fall under the following conditions, then you are eligible for the Employer Identification Number.

  • If you are planning to start a business entity for development and direction.
  • If you will keep employees and pay them up to $600 in a year.
  • If you will file returns in firearms, alcohol, tobacco and employment along with other requirements.
  • If you formed a Keogh plan for your business.
  • If you withhold taxes on income to non-residents or aliens.
  • If you have any of the following organizations;
    • Real estate mortgage investment conduit.
    • Trusts not owned by grantors yet, are revocable.
    • Plan administrators.
    • Farmer’s cooperatives.
    • Non-profit organization.

·       Step # 2: Fill Out the Form

To get a tax ID number in USA, you need to make sure that you fill out form 1040. You can do it online, by fax or by simply mailing it to the IRS department. Normally, people find that the easiest way to obtain the EIN number is by filling out form 1040 online. It is one of the most convenient ways because of the quick response for the EIN number. You can fill it out from Monday to Friday. The timings to fill out the form are from 7:00 a.m. to 10:00 p.m.

The application is quite short and covers all the basic information including your organization’s name, number of employees and street address. After you have filled form 1040, the website will immediately issue the EIN number to you. If all the information is genuine and meets the criteria, you will get the tax ID number in USA. Also, to fill out form 1040, you must be a responsible party, your business must be located in United States and you need to fulfill all other conditions written in the form too.

·       Step # 3: Fax or Mail the Form

Those individuals who belong to the old school of thought and are convenient in filling a printed application form may print out form SS-4 and visit their nearest post office to mail them the form. They can also fax it if they want. Filling out the form properly as prescribed in the form itself is essential so that you do not make any mistakes and send it to the following mailing address given below.

Mailing Address for International Applicants

Internal Revenue Service

Attn: EIN International Operation

Cincinnati, OH

45999

Fax Number for International Applicants

859 669 5987

Mailing Address for Applicants of Columbia

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax Number for US Applicants

859 669 5760

Now that you know the procedure of obtaining all three types of Tax ID numbers, we hope you will now be able to get a tax ID number in USA easily. Good luck!

If you need help getting a tax id number in the USA please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

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