How to Get a Business License and Tax ID
To start most businesses, you will need the appropriate licenses and tax identification numbers. Your precise needs will depend on the type of business and the state in which you are operating. You can obtain everything you need online, by phone, in person at the appropriate office or by mail.
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Instructions
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Get a federal tax identification number. Also called an Employer Identification Number (EIN), this is typically needed when applying for state and local identification numbers and licenses. You can get one free through the Internal Revenue Service (IRS) four different ways: online, toll-free telephone, fax or mail. If you apply online or by telephone, you will immediately receive the tax ID. Allow about four days via fax and four weeks by mail.
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Get a state tax identification number if necessary. Most states require that you get a one but it depends on your state. You might even need to get a number of tax-specific numbers for such things as a seller's permit or for unemployment insurance for your employees.
To determine if you need a state identification number, go to your state's official government website. You can find a state list on the IRS website. You can also obtain the required forms at your nearest employment tax office.
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Get any federal, state, county and city licenses. You will most likely need a business license to operate in your city or county. You might also need one for your state. Some state licensing requirements are based on the specific product sold such as liquor, lottery tickets, gasoline or firearms.
Federal licenses are only required for specific industries that include investment advising, drug manufacturing, meat preparation, broadcasting, ground transportation and selling alcohol, tobacco or firearms. If you are exporting products or operate under the jurisdiction of the Environmental Protection Agency (EPA), you will need separate permits.
Most state governments require licenses for many professions, including real estate agents, dentists, nurses, physicians, insurance agents and even barbers. Many city, county and state governments also typically require their own business licenses or permits. Check the government websites for all three to make sure you have everything required.
On Business.gov, you can input your zip code to determine all the registration requirements for your state, county and city. There are also good resources on SBA.gov, the site of the Small Business Administration.
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