One of several steps most businesses will need to take when starting a business in Kansas is to register for an Employer Identification Number (EIN) and Kansas state tax ID numbers. These numbers are most commonly used to register a business with the federal and state government in order to pay sales taxes, payroll taxes, and withhold taxes from employee wages.
Let’s review in more detail what this number is used for when it is required, the cost, and how to register.
Also See: Guide to Starting a Business in Kansas
What is the Employer Identification Number (EIN)?
EIN is short for Employer Identification Number and is sometimes referred to as a Federal Employer Identification Number, FEIN, Federal Tax Identification Number, or Federal Tax ID Number. This is a unique nine-digit number that is similar to a social security number for an individual but instead identifies a business.
The EIN is primarily needed to hire employees, as the EIN used as the account for paying payroll taxes, income tax withholdings, and unemployment taxes.
Some other uses of the EIN include:
- Opening a bank account – Banks need an EIN (or SSN if the EIN isn’t needed) before opening a business bank account.
- Applying for business licenses & permits – Most Kansas business licenses and permits will require the EIN (or SSN in some cases) before registering the business.
- Filing tax returns – To file taxes at the state and federal level, the EIN is used to identify the business.
Who needs an EIN?
The EIN is needed for Kansas businesses that are either:
- Registered as a partnership, corporation, or multi-member Limited Liability Company, or;
- A sole proprietorship or single-member LLC that has employees
The EIN is optional for sole proprietorships and single-member LLCs without employees as those business entities will use the owner’s social security number (SSN) or Individual Taxpayer Identification Number (ITIN). While it’s not required, using an EIN in place of the owner’s SSN can help protect the owner from identity theft.
Related: How to register for an EIN without an SSN
How to apply for an EIN
The easiest and fastest way to apply for an EIN is to visit the Internal Revenue Service (IRS) website, between the hours of 7 am – 10 pm EST, Monday – Friday.
The online application process only takes about 5 minutes to file the EIN online and the number will be ready in seconds. If applying online isn’t an option, you can also complete an EIN application by mail or fax by sending Form SS-4 to the IRS fax number 855-641-6935.
You can even get an EIN over the phone if the company was formed outside the U.S. by calling 267-941-1099. If filing by phone, note that it isn’t a toll-free number.
There is no cost to apply for an EIN.
See how to register an EIN in this video:If you prefer to have some guidance in applying for an EIN, companies like IncFile or ZenBusiness can quickly take care of the registration.
What Information Do I Need to Get an Employer Identification Number?
Applying for an EIN is pretty straightforward, but you will need to obtain some information beforehand, such as:
- Legal name of the business
- Business address
- Name(s) of the principal officer, manager, or owner
- Name(s) and contact information of the owners, directors, officers, or members
- Type of business and what activities the business performs
- Date the business was started or acquired
- Closing month of the entity’s accounting year
- Number of employees expected to be hired
- Contact information
Within seconds, the IRS will provide the EIN that can be used immediately. A few weeks later, the IRS will send the official paperwork, known as an EIN Confirmation Letter (CP 575).
Is an EIN the same as a tax ID number?
In addition to registering the EIN, many businesses will also need to get state of Kansas tax numbers in order to pay for a variety of state business taxes.
Business tax numbers in Kansas are often confused with the Employer Identification Number. The EIN is a separate number that is used to federally register a business with the Internal Revenue Service (IRS) and may be needed in addition to state tax numbers. The most common reasons a business in Kansas will need to register for a state business tax numbers include:
- Sales Tax – Businesses selling products and certain services are required to collect sales taxes and will need to register with the Kansas Department of Revenue. Learn more about registering for a Kansas Business Tax Number.
- Employees – Businesses hiring employees will need to register with the Kansas Department of Revenue to get a Withholding Account Number and the Kansas Department of Labor to get an Unemployment Insurance Tax Number to pay for payroll taxes. Learn more about registering as an employer in Kansas.
How much does it cost to get an EIN in Kansas?
There is no cost for an EIN when you apply directly through the Internal Revenue Service.
Should I get an EIN or LLC first?
Be sure to register your LLC or Corporation before registering for an EIN. You should wait until the name of the entity is confirmed with the Kansas Secretary of State before registering the EIN.
Related: How to register for an LLC in Kansas
My daughter formed a single member LLC in Kansas for the purpose of rehabbing/resale of homes. This LLC has no employees! She applied for and obtained a Federal EIN from the IRS. For the purpose of filing Kansas State Income Tax for this LLC, does she need another EIN issued by the State of Kansas?
Hi Frank – Having an EIN for an LLC with no employees is perfectly fine. There is no state-based EIN number, but she will want to look into a state Business Tax License – https://startingyourbusiness.com/how-to-register-for-a-business-tax-license-in-kansas/.
Let me know if you have any other questions!