Any Utah business owner must take the crucial step of obtaining a tax ID number. This number, sometimes called an Employer Identification Number (EIN), is required to open a business bank account, hire staff members, and submit tax returns. However, depending on how you apply, it may take longer or shorter to receive a tax ID number in Utah.
In Utah, there are two methods for requesting a tax ID number: online or by mail. If you submit your application online, you can get your tax ID number right away. Your EIN could, however, take up to four weeks if you apply by mail.
Visit the IRS website and choose “Apply Online Now” to submit an application for a tax ID number in Utah online. The legal name, address, and kind of business entity must all be provided as information about your company. Your tax ID number will be provided to you as away after you submit the application.
To apply by mail, you must download and fully fill out Form SS-4 from the IRS website. The completed form can then be mailed to the IRS office in Ogden, Utah. Your tax ID number might be mailed to you in up to four weeks.
It is crucial to understand that an entity number and an EIN are two different things. The Utah Division of Corporations and Commercial Code issues an entity number to identify registered enterprises operating in the state. The IRS issues an EIN, which is utilized for federal taxation.
The liability protection and tax advantages of each should be taken into account when choosing between an LLC and a sole proprietorship. A limited liability company (LLC) offers limited liability protection and can also offer tax advantages, such as the option to determine how the company is taxed. A sole proprietorship does not provide limited liability protection, and the owner is liable for the whole amount of the company’s obligations and liabilities.
The Utah State Tax Commission website has tax forms for Utah. The website offers forms for company tax, sales and use tax, and individual income tax. The website also allows you to file and pay your taxes online.
In conclusion, obtaining a tax ID number in Utah might take a variety of times, depending on how you apply. While mail-in applications might take up to four weeks, online applications often result in instant feedback. It’s crucial to take into account the liability protection and tax advantages each company entity type offers when choosing one. Finally, the Utah State Tax Commission website offers access to tax forms as well as online filing and payment options.