Missouri Tax ID Number: Everything You Need to Know
A Missouri tax ID number, also referred to as an EIN or Employer Identification Number, is given to a business entity from the IRS.3 min read
2. Missouri Tax ID Application: Overview
Updated October 26, 2020:
What is an EIN?
A Missouri tax ID number, also referred to as an EIN or Employer Identification Number, is given to a business entity from the IRS. It's also called a Tax ID Number or Federal Tax ID Number (TIN). To a business, the EIN serves the same purpose as a social security number serves for an individual. The EIN identifies the business to the IRS. Although its name refers to employees, receiving an EIN from the IRS does not require your business to have employees.
Your company needs an EIN to:
- File your business taxes
- Obtain a business license
- Manage payroll, if you plan to hire employees
- Open a business bank account, including checking, investment, and savings
- Qualify for and obtain a business loan or line of credit
- Qualify for and obtain a business credit card
Before you get an EIN from the IRS, your LLC should be approved by the Secretary of the State's office. If you try to file for an EIN first, it could be assigned to the wrong business. It's easy to tell the difference between an EIN and a SSN since the EIN has two digits, a hyphen, and seven additional digits. The IRS handles the application process to obtain an EIN, which is available at no cost. Other websites could charge between $75 and $150 to help you apply for an EIN.
Missouri Tax ID Application: Overview
When applying for a tax ID number in Missouri, the process is easy when you have the necessary business information available. You can apply for an EIN by fax, by mail, or by filling out the application on the IRS website. In order to simplify the application process, the state of Missouri has put together much of the necessary information on how and where to get a tax ID number on the website. Most business entities, including LLCs and organizations, need to obtain a Missouri tax ID or EIN, including nonprofits, trusts, churches, and estates.
When you have employees, you must have an EIN, unless your business operates as a sole proprietorship. Even if you operate a business entity that isn't required by the state to have a tax ID number, it is still highly recommended. When you have an EIN, you can use that for business-related activities, such as obtaining a license or bank account, and in the organization of the company instead of using your social security number. Your business would benefit from obtaining an EIN for many reasons.
When you're first going through the process of applying for a tax ID number in the state of Missouri, it can feel confusing. One benefit of using a tax ID number is helping to protect the owners' personal information from clients or customers that they don't meet in person or necessarily trust. It is critical for business owners to protect themselves and their families, and using an EIN is a good way to maintain this protection. When you apply, include your information first.
For new startups and businesses, Missouri is known as a good environment. Across the state, the business survival rate is higher than the national average. For startup company owners, the odds are in your favor. The high business survival rate combined with a lower-than-average cost of living, Missouri is a good place to start a new business. However, it's impossible to succeed without the necessary information and documentation, including your Missouri tax ID number.
Before you open your business, you will need to learn more about the process of applying for a tax ID number with the state of Missouri. The EIN is quite a bit like a social security number in that you use it for financial tasks, including obtaining a loan, opening a bank account, and filing taxes.
It is important to follow the process correctly when filing for an EIN to ensure you get everything you need, when you need it. If needed, seek assistance from someone who can help you file for a federal tax ID number. This person should be able to walk you through every step of the process, helping you avoid mistakes and that you complete the application correctly.
If you need help with a Missouri tax ID number, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.