The good news is that getting an Illinois tax ID number is totally free. The IRS website offers online, postal, and fax applications for EINs. If you decide to apply online, you will have your EIN as soon as the application is finished. Your EIN may not be available for up to four weeks if you opt to submit your application via mail or fax.
You might also need to obtain an Illinois Business Authorization Certificate in addition to a tax ID number. If you want to provide Illinois residents with products or services that are subject to sales tax, you must present this certificate. On the website of the Illinois Department of Revenue, you can submit an online application for this certificate.
Illinois levies a basic rate of 6.25% on all purchases made there. To find out the exact rate in your area, check with your local government as local sales tax rates might vary widely. You must regularly gather sales tax from your clients and send it to the Illinois Department of Revenue.
You must also obtain an Illinois resale number if you are a reseller. If you intend to resale the products or services you purchase using this number, vendors will not charge you sales tax. By registering online or by mail with the Illinois Department of Revenue, you can get a resale number.
Include your tax ID number and any other pertinent information when completing the CRT-61 sales tax form. This form must be regularly submitted to the Illinois Department of Revenue and is used to report the amount of sales tax you have received from customers.
In conclusion, obtaining a tax ID number in Illinois is free, but depending on the nature of your business, you might also want other certificates and numbers. Resells must obtain a resale number, and sales tax rates vary by location. You can make sure your company complies with Illinois tax rules by being aware of these criteria and completing the right steps.
The following procedures must be followed in order to register a business in Illinois:
1. Select a business name and confirm its availability. 2. Select a legal form for your company (corporation, LLC, partnership, sole proprietorship, etc.). 3. File a business registration with the Illinois Secretary of State. 4. Obtain any licenses and permissions required by your industry. Apply to the IRS for a Tax ID number, generally referred to as an Employer Identification Number or EIN. Getting a Tax ID number is free of charge.