It can be difficult to know which professionals to trust when relying on information to get an organization running. The Alabama Tax ID Application Manual is one piece of content, though, that you can rest all of your confidence in. The creation of the manual was with the intent of making it easy as can be to apply for a Tax ID (EIN) Number in Alabama. You can acquire an EIN online, knowing how to follow the online application process, and have a number no matter what type of organization you are within an hour.
Apply online by choosing your entity type
Steps to Obtain your Tax ID (EIN) Number in Alabama:
- Prepare Required Information
- Apply for an Alabama Tax ID Online
- Apply for an Alabama Tax ID by Phone, Mail or Fax
- How Do I Get a State Tax ID Number?
- How Do I Get a Sales Tax ID Number?
- How Do I Get a Alabama State Tax ID Number?
Getting a tax ID requires you to fill out an application, answering key questions about your business. If you want to improve your speed when filling out that application, you’ll want to gather the necessary pieces of information on your company and its founders in advance.
You’ll need the full legal names, legal addresses, and social security numbers of all founding members of your company. That includes you and all your business partners. You’ll also need to provide the legal name for your company, so if you haven’t yet decided on it, now’s the time. Set this information aside and have it prepared for the application process.
Filling out the application online is intuitive and convenient. You can access the application anywhere if you have an internet connection, and the questions are presented in a simple, easy-to-follow manner. As long as you’ve gathered all the requisite pieces of information on your company and its founders, you should be able to complete the application in 5 minutes or less.
Once you’re done answering those questions, you should receive your tax ID via email in less than an hour, and once you receive it, you’ll be able to get your business running. This is by far the best method of application, so it’s highly recommended as your tax ID application method of choice.
In addition to applying online, there are a handful of traditional options for your tax ID application. No matter which method you choose, you’ll be answering the same types of questions, but the format and convenience of traditional application methods make them more of a hassle. You can, for example, fill out the paper application manually and send it in via mail or fax, or you can answer the application questions over the phone with a representative. Either way, you’ll have to wait up to 4 to 6 weeks to get your tax ID by mail, which is far longer than the single hour it takes with an online application.
Some Alabama businesses will also need an Alabama state tax ID number, in addition to the federal tax ID number they may have already gotten. If your business needs this state tax ID number, you can follow a process somewhat similar to the one you used to apply for your federal tax ID.
To get your state tax ID number in Alabama, you’ll need to have your federal tax ID number in place, and you’ll need many of the same pieces of information you collected for that application. Then, you’ll have a similar assortment of application methods to choose from; while it’s possible to apply for your tax ID through a traditional process like phone, mail, or fax, again it’s more convenient and faster to apply for your state tax ID online.
Do note, however, that receiving your Alabama state tax ID will take considerably longer than receiving your federal tax ID. Even if you apply online (which is still the recommended method), it will take 4 to 6 weeks to secure your state tax ID.
If you’re going to sell taxable goods and services in the state of Alabama, you’ll need to plan for sales taxes, and you might suspect you’ll need a sales tax ID number to do it. However, the term “sales tax ID” is an informal way of referencing your Alabama state tax ID.
To clarify, there are two types of tax ID you’ll need to think about. Your federal tax ID is oftentimes referred to simply as “tax ID.” It’s also frequently called an employer identification number, or EIN. You’ll need this number if you’re going to have multiple business partners, like in a partnership, LLC, or corporation. You’ll also need it if you’re going to hire employees (as the name suggests), if you’re going to open a business bank account, and/or if you’re going to apply for various permits and licenses for your business.
The other type of tax ID is an Alabama state tax ID. Sometimes referred to as a sales tax ID, this is the number you’ll use when accounting for sales tax (on taxable goods and services), excise taxes, and when hiring Alabama state employees.
Most businesses in Alabama will need both a federal tax ID number and an Alabama state tax ID number. Remember, you’ll need a federal tax ID if you have any business partners or if you’re hiring employees, or if you’re applying for business credit or licenses and permits. You’ll need an Alabama state tax ID if you’re hiring Alabama employees, or if you’re selling taxable goods and services in the state.
If you do need an Alabama state tax ID, the best idea is to apply online. The online application process is similar to the online application process for your federal tax ID. It won’t take long to answer the questions, but it may take up to 4 to 6 weeks to receive your state tax ID.