Register a Tax ID Number Online
If you are a business owner, you will need a tax ID for your business as well. This tax ID is also known as EIN-Employer Identification Number. An EIN for your business is more like a social security number for you as an individual – an EIN is a nine-digit number that identifies your business just like a social security number identifies a person. You must obtain an EIN (employer identification number) for your business to be able to perform the following: hiring employees, filing your tax business’ returns, obtaining various business licenses, etc.
Can You Have Multiple Tax IDs?
While your business’ EIN and the personal social security number act in the same way for the most part, there is a big difference between the two. In short, it is possible to have multiple EINs if you do not operate as a Sole Proprietor and you own multiple corporations. Though each of these entities must pay their own taxes, the IRS uses the EINs to identify the businesses separately. Keep in mind that sole proprietorships are not considered legal entities, so you cannot have multiple EINs for these. You can file your personal taxes while the Sole Proprietorship income simply “passes through” to your personal income.
How to Register a Tax ID
Now you can register your Tax ID (EIN) online in addition to registration using traditional methods i.e. mail, phone and fax. Mail and phone are the slowest methods and can easily take up to 2 weeks before you get your tax ID registered. Why you should go for online Tax ID registration is because it is the fastest method to obtain your Tax ID. Using other methods, you can obtain your Tax ID or EIN within two days, but when you apply online, you can obtain your Tax ID within one hour! Another important thing to know is that the IRS application to register your tax ID online is not available 24/7. Normal business hours change with holiday schedules etc. but you can register using the official 24/7 Tax ID Application.