One of several steps most businesses will need to take when starting a business in Oregon is registering for an Employer Identification Number (EIN) and Oregon 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 Oregon
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 is 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 Oregon business licenses and permits will require the EIN (or SSN in some cases) before filing an application.
- Filing tax returns – To file state and federal tax returns, the EIN is used to identify the business.
Who needs an EIN?
The EIN is needed for Oregon businesses that are either:
Let’s review in more detail what this number is used for when it is required, the cost, and how to register.
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 is used as the account for paying payroll taxes, income tax withholdings, and unemployment taxes.
See how to register an EIN in this video:
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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 Oregon tax numbers in order to pay for a variety of state business taxes.Â
Business tax numbers in Oregon 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. Â
Businesses hiring employees will need to register with the Oregon Department of Revenue to get a Business Identification Number and the Oregon Employment Department to get an Employer Account Number. Learn more about registering as an employer in Oregon.
How much does it cost to get an EIN in Oregon?
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 Oregon Secretary of State before registering the EIN.
Related: How to register for an LLC in Oregon
