You must submit an application to the Indiana Department of Revenue in order to get an Indiana tax ID number. The INBiz portal, the state of Indiana’s one-stop shop for setting up and maintaining your business, allows you to complete the application online. You can also fill out a paper application and send it to the Indiana Department of Revenue by mail.
You must include basic information about your company on the application, including its legal name, address, and federal tax ID number. You will also need to estimate your monthly taxable sales and list the categories of goods and services you sell. If you are eligible, the Indiana Department of Revenue will examine your application and provide you a tax ID number.
Once you obtain your Indiana tax identification number, you must start gathering and sending the state’s sales tax. Although Indiana has a 7% statewide sales tax, depending on where your company is located, local sales taxes can also be applicable. In order to ascertain the proper sales tax rate, collect the tax, and submit it in accordance with the law, you must register with each local jurisdiction where you conduct business.
It is significant to remember that unless the vendor has a physical presence in Indiana, Indiana does not collect sales tax on out-of-state purchases. This means that you won’t be charged Indiana sales tax if you buy goods or services from an out-of-state vendor who doesn’t have a physical presence there. You will be required to pay Indiana sales tax if you order things online from a vendor who has a physical presence in Indiana, such as an Amazon warehouse or a retail establishment.
In conclusion, getting an Indiana tax ID number is a must for companies doing business there. It ensures adherence to Indiana tax regulations and enables you to gather and pay sales tax on the state’s behalf. The Indiana Department of Revenue can provide assistance if you require it or if you have any questions about the procedure.