Applying for a Tax ID (EIN) Number in Maryland? Learn more about how to apply online using this short Maryland Tax ID Application Guide. You will need to provide some personal information about each of your partners, even if you’re a Non-Profit, Corporation, Estate of Deceased, Trust, Partnership or multi-member LLC. Get more guidance on applying for your official Tax ID (EIN) Number in Maryland.
Apply Online by Choosing Your Entity Type
Steps to Obtain your Tax ID (EIN) Number in Maryland:
- Prepare Required Information
- Apply for a Maryland Tax ID Online
- Apply for a Maryland Tax ID by Phone, Mail or Fax
- How Do I Get an EIN in Maryland
- Is an EIN the Same as a Tax ID?
- How Do I Get a Maryland State Tax ID Number?
The most time-consuming part of the process is filling out the application that registers your business with the government. However, this process can be hastened significantly if you have the proper information prepared in advance. Take a few minutes to finalize your business’s legal name, and gather key pieces of information about yourself and your cofounders. You’ll need to have their full legal names, their legal addresses, and their social security numbers. Once you have this information on hand, the application process will be much faster to complete.
Now for the application process itself. You’ll have a few different options when it comes to applying for your Maryland tax ID. Some of them fall into the category of “traditional” application methods; for these, you’ll use older processes like applying via phone, mail, or fax. These methods tend to be slower and less convenient, so you’re much better off applying for a tax ID online.
The online application process is easily accessible to anyone with an internet connection. You won’t need any paperwork or special skills to complete it, either. In fact, once you’ve gathered the proper information, you should be able to finish the application in a matter of minutes. When you’re finished, you’ll need to wait for the application to finish processing, which could take as little as 1 hour. When that processing is finished, you’ll receive your tax ID in your email.Apply for a Maryland Tax ID Number
Even though applying online is faster and easier for the vast majority of people, traditional methods are still available. You can apply via mail or fax if you fill out the right paperwork and send it in. You can also apply over the phone by conversing with a representative and answering the questions in an interview format. However, each of these methods naturally takes longer than filling out the questionnaire online- and the processing time is terrible. It takes up to 4 to 6 weeks to process an application in one of these traditional methods, compared to the one hour it takes to process online.
Most businesses will need to have an employer identification number (EIN), otherwise known as a tax ID number. Fortunately, the process to obtain one is straightforward. You can consider it in two main phases: the application phase and the processing phase. The application phase involves filling out an application or answering a questionnaire about key aspects of your business, including personal information from your cofounders. Since applying for an EIN registers your business with the federal government, the accuracy of this information is crucial.
Filling out the application shouldn’t take long, but the processing phase can be excruciatingly long, depending on how you apply. Applying for an EIN online is very fast; after you’ve finished the application, you can get your EIN over email in an hour or less. It’s the ideal method if you want to start your business as soon as possible. Applying for an EIN over phone, mail or fax takes considerably longer- sometimes several weeks.
The terminology referring to tax IDs can get confusing, especially if you’ve never worked with them before. Your employer identification number (EIN) refers to the same, unique, nine-digit number as your “tax ID” or federal tax ID. This is a unique number provided by the federal government to identify businesses and register them for taxes and other purposes. Though the terms vary, they refer to the same concept. You may also see it referred to as a federal employer identification number (FEIN).
No matter how you refer to it, this number is vital if you’re hiring employees (as one of its names implies), if you’re going to open business bank accounts, or if you’re going to establish credit as a business. You’ll also need one for any business that has multiple partners or members, such as a partnership, an LLC with multiple members, or a corporation.
When people say “tax ID” generally, they’re usually referring to your EIN. However, there’s a small chance they’re referring to a state tax ID number, which is a distinct concept. You may need a state tax ID number for your Maryland business in addition to your EIN.
Most Maryland businesses will need an EIN, since most will either be formed by multiple people, need to hire employees, or will apply for loans and bank accounts. However, you may also need a Maryland state tax ID. You’ll need this distinct, state-level ID number if you’re going to hire employees in the state of Maryland, if you’re going to sell taxable goods and services in Maryland, or if you’re going to owe excise taxes on certain regulated products, like tobacco or alcohol.
Applying for a Maryland state tax ID number is similar to the application process you went through to get your EIN. In fact, you should have your EIN in place before you get your Maryland state tax ID. Like with an EIN, you’ll have the option of applying through a traditional method, or applying online. Applying online is much easier and faster, though you can’t expect the same turnaround time as with an EIN. The online processing time is faster than with a traditional process, but could still take upwards of a few weeks.