If you recently started or plan to start a business in Indiana or have another taxable entity one of the first things you will want to do is obtain your Tax ID in Indiana.
Obtaining a Tax ID Number (EIN)
When starting a business in Indiana, serving as the administrator or executor of an estate, creator of a Trust or operating a Non Profit Organization obtaining a Tax ID (EIN) is a key responsibility. A Tax ID also known as an Employer ID Number (EIN) is a unique nine digit number that identifies your business or entity with the IRS for tax purposes, essentially like a Social Security Number for the entity. A Tax ID (EIN) is used for opening a business bank account, filing business tax returns and in many cases is required when applying for business licenses. In most cases it is helpful to apply for a Tax ID (EIN) as soon as your start planning a business to ensure that there are no delays in obtaining the correct licenses, financing and opening a business bank account that would be needed to operate.
Information to Consider Prior to Applying
Before applying for your Tax ID (EIN) you may want to consider a few things before starting the application including:
- Determine which structure your business or organization will operate as
- Determine the individual or organization that will serve as the responsible party
- Determine the physical address the business/entity will use – A physical address is required for all Tax ID (EIN)’s and a separate mailing address can be specified
Definition of Entities
- Sole Proprietor – An individual who owns a company that is not incorporated or registered with the state as a limited liability company (LLC).
- Limited Liability Company (LLC) – A LLC is a structure formed by filing articles of organization which allows members limited liability protection and pass through taxation.
- Corporation – A person or group of people who establish a legal entity by filing articles of incorporation with the state’s secretary of state.
- Estate of Deceased – An estate (or decedent estate) or succession is a legal entity created as a result of a person’s death.
- Trusts – All types of trusts including conservatorships, custodianships, guardianships, irrevocable trusts, revocable trusts, and receiverships.
- Partnership – An unincorporated organization in which two or more individuals share the profits and liabilities of a business venture.
- Church – For tax purposes, a “church” refers to any organization claiming to be a church including temples, mosques, and other houses of worship.
- Non-Profit Organization – Includes public charities, educational organizations, PTA/PTO Organizations, Community Sports Teams, Homeowners/Condo Associates, etc.
Indiana State Tax ID
Outside of obtaining your Federal Tax ID (EIN) in Indiana you will also likely need a Indiana State Tax ID. This ID is needed to pay business taxes, state income tax and/or sales tax on items you sell. Generally the State Tax ID is used for the follow:
- Sales and Use Tax
- Employee Income Tax Witholding
- Sales Tax Exemption Permits
- Excise Taxes for items like Alcohol, Tobacco, Firearms, Oil & Gas, heavy machinery, etc.
For specific detail refer to the Indiana State Website at http://www.in.gov/sos/business/3793.htm
Cities in Indiana
- West Lafayette, IN
- Crown Point, IN
- New Albany, IN
- Richmond, IN
- La Porte, IN
- Michigan City, IN
- Carmel, IN
- Columbus, IN
- Bloomington, IN
- Elkhart, IN
- Valparaiso, IN
- Portage, IN
- Greenfield, IN
- Merrillville, IN
- Kokomo, IN
- Fishers, IN
- Noblesville, IN
- Brownsburg, IN
- Avon, IN
- Hobart, IN
- Franklin, IN
- Indianapolis, IN
- Martinsville, IN
- Mishawaka, IN
- Goshen, IN
- Granger, IN
- Greenwood, IN
- Plainfield, IN
- New Castle, IN
- East Chicago, IN
- Logansport, IN
- Seymour, IN
- Crawfordsville, IN
- Bedford, IN
- Shelbyville, IN
- Muncie, IN
- Huntington, IN
- Vincennes, IN
- Zionsville, IN
- Chesterton, IN
- Frankfort, IN
- Schererville, IN
- Peru, IN
- Highland, IN
- Munster, IN
- Plymouth, IN
- Connersville, IN
- Columbia City, IN