As a knowledgeable entrepreneur, you should be aware of various government documents that you need to obtain and file before you can start running your business. One of the most important tasks you are to complete is to obtain a tax identification number. Your tax ID comes in nine-digit and is issued by the IRS. Before you proceed, you want to be sure you have your SSN (social security number), business address and name and contact list of employees, if any.
Which do you need?
To obtain a tax ID number in Ohio, you need to first come to terms with which tax ID you need. There are two different types of tax ID you should concern yourself with: your employer identification number (EIN), otherwise referred to as federal tax ID number and your Ohio state tax ID number.
Both numbers play specific roles and serve as unique IDs for your business, somewhat like your SSN for you as an individual. However, they both function differently.
As you might have guessed, your federal tax number is used to register your business with the federal government. It would come in as quite handy if you plan to hire employees, open an official business bank account and similar sorts.
Your Ohio state tax ID is used for state-level taxes and registration. You will need one if you plan to restrict your business within Ohio, such as hiring Ohio employees, selling excise taxable goods such as tobacco and alcohol.
The easiest way to apply
The easiest way to file for any of the tax IDs is to visit the official website of the IRS. You would probably be asked to fill some forms and answer some questions about your business. The process shouldn’t exceed ten minutes. See this Ohio guide for more information to help you.