Starting a new business is never an easy job and there are various complications that you have to face when you are looking to start a business in United States. One of the first things that you need to do before starting any new business is getting a federal tax id which used to be quite a tedious job. But now it has become easier and you can apply for it via online means only.
Generally, two of the most common things that you people tend to opt for are tax id or an EIN (Employer identification number). These ids help you to start and run your function smoothly within USA and across the globe as well. So now, if you are wondering, how to get federal tax id, and here is a detailed look at what you need to in order to get one:
Selecting a proper entity
The first thing that you need to do in order to get a federal tax Id is by filling up the tax ID form. In the form, the first thing that you need to do is selecting the proper entity. There are various options that you have listed out there such as Sole proprietor, partnership, Limited Liability Company, partnership firm or trust. You need to choose one amongst them based on the operation of your business and it is all done.
Filling out the information on the page
The second thing that you need to do after selecting the type of entity is putting all the information on the one-page form. For an instance, if you are looking to start a Limited Liability Group, you need to mention the details of business partners along with all the other requisite details on the form. You also need to mention the address and structure of business on the page.
Payment of the fee
The last thing that you need to do is submit the processing fee which is payable only once for registering and getting an EIN number. When you tend to apply EIN online, most of you are confused about whether you need to pay the fee annually for renewal or only once. So, to make this point very clear, you just need to pay it once and you will get an EIN number.
What is the time period for processing of EIN?
This is another very common question that most of you tend to have in mind when you think about applying for the same. The processing time for the EIN is just around one hour and after one hour you will receive your EIN number which makes thing easier for you. So, if you are thinking about starting a LLC and wondering upon how to start an LLC on a short notice, you easily can as your Tax ID can be generated in an hour. But it will take around two weeks roughly for your EIN to be uploaded on the IRS website which may be a cause of concern for you.