How to Apply for an Federal Tax Id Number

Federal Tax ID number also known as an EID

Getting a tax ID number is one of the more intimidating steps when starting a new business. It doesn't need to be, a federal tax id number is pretty easy to get and the benefits to your business are immense. A federal tax ID number will allow you to purchase good for resale without sales tax. This is important because most wholesalers will not even tell you their prices if you do not have a tax ID number.

Instructions

1. The first step is to register you business. There are several types models you can operate your business under, most small businesses start out as Limited liability companies (LLC). Forming an LLC is pretty simply and shouldn't be expensive. Most states allow you to register an LLC on line. If you are not comfortable there are plenty of reputable companies that will help you register your LLC for a small fee.

2. After you register your LLC you can apply for an EIN or tax ID number on IRS.gov.

3. 

   Click on the business field on the IRS home page

4. 

   Click on the self employed tab on the IRS web page

5. 

   Click on the apply for EIN button

6. Fill in required information

Tips & Warnings

• There is a extensive FAQ section on the IRS website

• Be honest on all forms

Resources

• IRS