While establishing a business venture is a fulfilling experience, it comes with many responsibilities. For any entrepreneur, obtaining an Employer Identification Number (EIN) for their business is one of the most essential legal steps for business registration. 

Business tax identification is referred to by different names across different countries, such as the Employer Identification Number (EIN) in the US, Australian Business Number (ABN) in Australia, CRA Business Number (BN) in Canada, or Unique Taxpayer Reference (UTR) in the UK, and Taxpayer Identification Number (TIN) in India. It is a special number that functions for businesses similarly to a social security number. 

In addition to filing tax returns and paying payroll taxes, companies need to know how to get a federal tax ID number to open a tax account and proceed with business operations. Many companies need a federal tax ID mandatorily to conduct their business processes. For example, sole proprietorship businesses do not need to apply for EIN if they are not planning to hire any employees.

In most cases, applying for and receiving a tax ID number should be your top priority in the early stages of the business. Let's learn more about business taxes and how to get an EIN or Tax ID Number.

What is a Business Tax?

Managing your tax affairs and responsibilities is essential to your business, especially if you have employees. Your company's tax obligations will change based on the type of business you operate, the number of employees you hire, and your legal structure. 

Businesses must pay taxes on their income, profits, and capital gains at the federal, state, and local levels. Various business taxes apply based on the region and structure of the enterprise. Thus, every business requires a tax ID number and should know how to get a tax ID number for hiring employees or filing taxes. 

How to apply for a Tax ID Number?

Here is the list of how to get a tax ID number in different countries:

Applying for EIN in the United States

Obtaining an EIN does not need any charge. Furthermore, you have three options when it comes to how to get an EIN in the US. You can apply by mail, fax, or online. Remember that if you own multiple businesses, you cannot apply for more than 1 EIN in just one day. 

1. Online

The IRS advises businesses based in the US and its territories to obtain their EIN online. You can go to the IRS website to start your application process. However, remember that the application is accessible from Monday to Friday, 7 a.m. to 10 p.m. EST only. 

You cannot save your application and return to it. Sessions for online EIN applications end after 15 minutes of inactivity, so schedule your time carefully to avoid losing progress. The online application is the quickest way to obtain your EIN.

2. Fax

If you are unable to apply online, you may apply by fax. You have to fill out Form SS-4 Application for Employer Identification Number. Unlike the online application, the completed form can be faxed at any time of the day since it does not have a set operational time window. 

The fax number you choose will vary based on the location of your company. Fax Form SS-4 to the IRS using one of the following numbers:

• (855)641-6935: If your primary business, office, agency, or legal residence is in one of the 50 states or the District of Columbia
• (855)215-1627: If you don't have a principal office, place of business, residence, or agency in any state.

3. Mail

If you are wondering how to get an EIN using another method, then submitting your application via mail is also possible. With this option, you must also fill out Form SS-4. If your main place of business is in the United States, mail your filled Form SS-4 to the following address:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

If your company is outside the US, "EIN International Operation" should be written in the Attention Line instead. 

Applying for ABN In Australia 

A unique 11-digit number, an ABN, issued by the Australian Taxation Office (ATO), renders a unique taxation identity to your business. The online application process for an ABN is managed by the Australian Business Register (ABR) External site. Additionally, the form will

alert you of the information required to complete your registration.

• let you save your progress and return at a later date.
• provide you with more useful information about ABN.
• enable you to complete any additional company registrations, such as GST.

However, before applying for an ABN, ensure that your business is eligible for it, as you could be liable for a lawsuit if you don't qualify. If you already have or are planning to start a company in Australia, your firm is an incorporated entity, or you do business in an indirect tax zone, you must have an ABN. Additionally, an ABN review can happen anytime to verify the facts in your application. 

Applying for CRA Business Number In Canada

By using Business Registration Online (BRO),  you can register with the Canada Revenue Agency (CRA) directly. Besides that, you will automatically receive a BN if you:

• Open an account for any CRA program (such as import-export, payroll deductions, GST/HST, etc.),
• Federally incorporate your company,
• Incorporate or register your company in certain provinces, including British Columbia, Manitoba, Ontario, New Brunswick, Saskatchewan, and Nova Scotia.

Also, note that you might need to apply for a new business number if you want to change your company's legal ownership or organizational structure. Once you get your CRA BN, you can apply for GST or HST if you qualify.

Applying for UTR In the United Kingdom 

A Unique Taxpayer Reference (UTR) is a 10-digit number required if you are self-employed, own a company in the UK, or pay Self Assessment tax. Wondering how to get a federal tax ID for your business?

If you are self-employed or the sole owner of a small business earning more than £1,000 per year, you must register for a UTR by His Majesty's Revenue and Customs, or HMRC. You can make an account in the app, register for self-assessment or Class 2 insurance, fill in the prerequisite details, and wait for your UTR to be generated. 

However, if you are a proprietor, you can fill out the CWF1 Form available online, mail a printed copy to HRMC, and wait for your UTR to be mailed to you. 

Applying for TIN In India

A Tax Identification Number (TIN) is a special identification number that the government assigns to businesses in India. To apply for a TIN, follow the steps mentioned below:

• Check out the official website of your state's Commercial Tax Department or VAT portal
• Fill out the required form on the VAT site with all the necessary information to register your business
• Upload documents such as address and identity proof of your business and yourself.
• Use the online portal to submit the registration form and supporting documentation.
• The submitted form and supporting documentation will be thoroughly examined and verified by the Commercial Tax Department.
• After your registration is accepted, the tax authority will provide your Tax Identification Number (TIN) and give you a provisional certification for your business.
• The verification process includes physically examining your workplace from a state-employed VAT inspector.

Getting your TIN will take a few days, but you will receive an acknowledgment number within 3 days of registering. You can use this number to check the status of your TIN on the NSDL website. 

Conclusion 

Businesses need several governmental permits and licenses to conduct their operational processes. The business tax registration number is one of them. It is an important number that will render your company legal legitimacy. It also helps you scale up your business. Most countries have streamlined the process of acquiring this unique business ID to make the entire process as seamless and stress-free as possible. However, always ensure that your business meets the qualifying criteria for business tax before applying for a tax number. 

We have compiled the process of acquiring your unique business tax identity in different countries. So, find out whether your business qualifies for a tax and how to get a tax ID number, follow this guide and register now! 

Frequently Asked Questions

1. How much time is required to obtain an EIN?

The method you apply for an EIN will determine how long it takes to process. The IRS estimates that the processing time for your number could be as follows:

• Online: Straight away. Get your EIN confirmation notice by downloading, saving, or printing it for your documentation.
• Fax: If you supply a return fax number, it will take four business days; it can sometimes take roughly two weeks.
• Mail: Approximately four weeks. Be prepared to wait because mailing your application takes the longest to process.

Fill in the EIN field with "Applied For" if you cannot get your Employer Identification Number in time to file your tax return.

2. How to get back your EIN if you lose it?

Do not panic if you misplace or lose your EIN; you can reclaim it. Often, you can perform an EIN lookup without contacting the IRS. Examine your digital and physical business documents first. Look for the notice the IRS sent you when you first applied for your Employer Identification Number.

If you cannot find the original confirmation, keep looking. Your EIN should appear on several documents, such as:

• Bank account information,
• Employee payroll records,
• State account applications,
• Small business tax returns.

If you cannot find your EIN, call the IRS Business and Specialty Tax Line at 800-829-4933. You can reach them by phone from 7 a.m. to 7 p.m. EST, Monday through Friday.

The IRS will do an EIN lookup and provide your number over the phone once you provide identifying information. 

3. What are the benefits of having an EIN? Why can't I use my Social Security number?

You can use your SSN rather than an EIN, but having an EIN helps keep your personal and business finances separate, lowering the risk of identity theft. EINs are unique to each business to which they are assigned. The numbers never expire, and the same set of numbers is never reissued to another company, even if the original one goes out of business.

Being able to operate your business is the primary benefit of getting EIN. An EIN is also required for other requirements, including:

• hiring and paying staff
• getting credit, opening bank accounts, and investing additional funds
• protecting corporate shields
• registering state taxes and submitting business taxes

Q.4. Is it ever necessary for a business to update its EIN?

Usually, once you have an EIN, you won't need to apply for a new one or change your present one. However, you may need to update your EIN in certain situations—such as when you convert your company from a sole proprietorship to a corporation or become involved in a bankruptcy case. If you are a sole proprietor and purchase or inherit an existing business, you might need to update your EIN.

Q.5. Is a tax ID the same as an EIN?

Yes, a tax ID and an EIN are the same thing. The EIN, your Federal Tax Identification Number, identifies your business entity. Consider your tax ID or EIN as your company's social security number. Providing your SSN will still be required as part of the documents when you apply for a business loan or other types of credit.