The way you apply for a federal tax ID will affect how long it takes for you to get it. More importantly, you should apply for a tax ID, also called an Employer Identification Number (EIN), well before you plan to file a tax return.
Remember, tax IDs or EINs are used by the Internal Revenue Service (IRS) to identify legal entities or businesses and track their corresponding tax obligations. If you’ve recently started a business, or plan to do so in the near future, it’s likely that you’ll need to apply for this important tax ID.
Different Ways to Apply for a Tax ID
The fastest way to apply for a fed tax ID or EIN is to apply online. If you’re unable to apply online, you can also apply by fax, mail, or telephone. However, these other procedures take longer to process, and you will have to wait longer to receive your fed tax ID.
For example, fax applications take approximately four business days to process; it can take up to four weeks to receive your new tax ID or EIN if you decide to apply by mail.
The easiest and fastest way to receive your tax ID is to apply online. Online applications are processed within 24 hours, and you can check on the status of your tax ID at any time.
How to Apply for a Federal Tax ID Online
Applying for an EIN online only takes a few minutes, and you’ll have your new tax ID number within 24 hours.
You’ll need some basic information about your business to complete your application, including the name of the business, the type of entity, and the address where you plan to do business. Have as much of this information ready as possible to complete the application faster.