Employer Identification Number (EIN) Overview
The EIN identifies your business to the IRS and it is free of charge, regardless of state. An EIN identifies businesses for tax purposes. You need an EIN if you are starting a business in Indiana or if you are self-employed or own a business, and also need to apply for a Tax ID number. Obtaining an Indiana EIN is quick and easy, and you can apply for an EIN online.
State-Level Tax ID in Indiana
A TID number in Indiana refers to a state-level tax ID, distinct from your federal EIN. If your business conducts operations in Indiana, you’ll probably need a state-level tax ID. Businesses will need an EIN if hiring employees or if they’re owned by multiple founders/partners.
Applying for an EIN in Indiana
You could think of the EIN as your “account number” with the IRS. To get an EIN in Indiana, you can apply online. This process should only take about 30 minutes if you have a Social Security Number (SSN). You can use your EIN immediately after obtaining it.
EIN Cost and Use in Washington State
Does an EIN cost $250? No, applying for an EIN for your Washington LLC is free of charge. The IRS does not charge any service fees for EIN applications, even if you have a Social Security Number (SSN).
Washington State LLC Costs:
- EIN: $0
- Annual Report: $60 (per year)
- State Business License Application: $90 (one-time)
- City Business License: Varies (renewed each year)
Most Washington business licenses and permits will require the EIN before filing an application.
When it comes to taxes, most LLCs are pass-through entities. The EIN is used to identify the business when filing tax returns.
Obtaining an EIN
You can apply online, by mail, or fax for your EIN. The EIN serves as a unique ID for businesses and is essential to pay federal taxes, open bank accounts, and apply for licenses and permits. Some websites charge a fee for EIN services, but the IRS itself does not charge any fee. Once issued to an entity, the EIN is permanent and will not be reissued.