If you recently started or plan to start a business in Illinois or have another taxable entity one of the first things you will want to do is obtain your Tax ID in Illinois.
Obtaining a Tax ID Number (EIN)
When starting a business in Illinois, 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.
Illinois State Tax ID
Outside of obtaining your Federal Tax ID (EIN) in Illinois you will also likely need a Illinois 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 Illinois State Website at http://www.revenue.state.il.us/Businesses/register.htm
Cities in Illinois
- Cicero, IL
- Berwyn, IL
- Round Lake, IL
- Des Plaines, IL
- Chicago Heights, IL
- Oak Lawn, IL
- Mount Prospect, IL
- Bolingbrook, IL
- Normal, IL
- Lombard, IL
- Elgin, IL
- Arlington Heights, IL
- Elmhurst, IL
- Dekalb, IL
- Moline, IL
- Barrington, IL
- Pekin, IL
- Granite City, IL
- Evanston, IL
- Elmwood Park, IL
- Naperville, IL
- Bartlett, IL
- Lake Zurich, IL
- Buffalo Grove, IL
- Northbrook, IL
- Streamwood, IL
- Romeoville, IL
- Addison, IL
- Rock Island, IL
- Glenview, IL
- Orland Park, IL
- Carpentersville, IL
- Tinley Park, IL
- Hanover Park, IL
- Gurnee, IL
- Glen Ellyn, IL
- Wheeling, IL
- Park Ridge, IL
- Danville, IL
- Mundelein, IL
- Calumet City, IL
- Kankakee, IL
- Champaign, IL
- Lockport, IL
- West Chicago, IL
- Oswego, IL
- Bloomington, IL
- Grayslake, IL