How to Get a Tax ID for a Home Business
When you start a home business, register the business with the IRS for tax filing purposes. When registering your business, you will be given an Employee Identification Number (EIN). Use this number on all tax documents. Even if you do not plan to hire employees, using an EIN instead of your Social Security number on tax documents helps protect you from identity theft and ensures there is an accurate record of all business taxes paid throughout the year.
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Instructions
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Visit IRS.gov to apply for an EIN. This number is also known as a Federal Tax Identification Number. Use it to file tax returns for your home business, to open a business bank account, or on tax documents such as a 1099 form if performing contract work.
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Print and mail in Form SS-4 or apply online, by phone or by Fax.
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Use your EIN as soon it arrives for business documents that require a tax identification number. If you apply online or by phone, you should receive an EIN in one to two days, depending on processing time. If you apply by Fax, include a return Fax number to receive an EIN within one week. If applying by mail, expect to wait two to four weeks.
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Contact your state's tax revenue office and ask whether you need to file similar documents for state and local taxes. You may need to provide an EIN, so apply for this number first.
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Tips & Warnings
Apply for an EIN before starting your home business so you leave enough time for all paperwork to be processed.
When closing your business or when changing business structures, visit IRS.gov to determine whether additional paperwork needs to be filed to record these changes.
