How to Get a Tax ID Number in PA for a Business

A tax identification number serves as a unique identifier for businesses and entities, crucial for financial and legal operations. In Pennsylvania, businesses typically need two primary tax IDs: a federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS) and a state-specific Pennsylvania tax ID from the Pennsylvania Department of Revenue (DOR). These numbers are fundamental for filing federal and state taxes, opening business bank accounts, and fulfilling employer obligations like hiring employees and withholding taxes. Obtaining both is a foundational step for any business operating within the Commonwealth.

Obtaining a Federal Employer Identification Number (EIN)

What is an EIN and Who Needs One?

An Employer Identification Number (EIN) is a nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity. It functions like a Social Security Number (SSN) for individuals, but for businesses. An EIN is required for business activities such as hiring employees, operating as a corporation or partnership, or filing certain tax returns. Sole proprietorships or single-member LLCs may also obtain one to separate business and personal finances or to simplify tax filings.

Information Needed to Apply for an EIN

To apply for an EIN, businesses must provide information on IRS Form SS-4, the “Application for Employer Identification Number.” This includes the entity’s legal name, mailing address, and the county and state where the principal business is located. Applicants must also specify the type of entity, such as a sole proprietorship, partnership, Limited Liability Company (LLC), corporation, or non-profit organization.

The application requires stating the reason for applying, such as starting a new business, hiring employees, or changing the organizational structure. Details about the responsible party—the individual who owns or controls the entity—must be provided, including their name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). An ITIN is a nine-digit tax processing number issued by the IRS to individuals who do not have an SSN but are required to file U.S. tax returns. Additional information includes the business start date, principal business activity, and anticipated number of employees.

How to Apply for an EIN

The IRS provides several methods for applying for an EIN. The online application is the fastest option for most domestic businesses, available Monday through Friday, from 7:00 AM to 10:00 PM Eastern Time. After navigating to the IRS EIN Assistant page on irs.gov, applicants select their entity type and provide required business information, receiving their EIN instantly upon submission. This immediate issuance allows use of the digital EIN for various business activities.

Alternatively, businesses can apply by faxing a completed Form SS-4 to (855) 641-6935 for U.S. businesses. If a fax number is provided, the IRS faxes back a confirmation with the EIN within four business days.

The mail-in option is the slowest method, with processing times ranging from four to six weeks. Completed Form SS-4s for U.S. businesses should be mailed to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. Ensure all information on the SS-4 form is accurate and complete to avoid delays.

Obtaining a Pennsylvania State Tax ID Number

What is a PA Tax ID and Who Needs One?

A Pennsylvania State Tax ID is a unique identifier issued by the Pennsylvania Department of Revenue (DOR) for state-specific tax obligations. This number is distinct from the federal EIN and is essential for businesses operating within the Commonwealth. Businesses need a Pennsylvania Tax ID if they are collecting sales tax, withholding Pennsylvania income tax from employee wages, or are subject to other state-specific taxes like the corporate net income tax. The primary vehicle for registering for most state taxes is the Pennsylvania Enterprise Registration Form, known as PA-100.

Information Needed for PA Business Registration

To register for a Pennsylvania Tax ID, businesses must complete the PA-100 form, which requires information about the entity. Details include the business’s legal name, physical and mailing addresses, and the federal EIN already obtained from the IRS. The form also asks for the type of business entity, such as a sole proprietorship, partnership, LLC, or corporation, and the date the business began operations in Pennsylvania.

Applicants must specify the types of Pennsylvania taxes for which they are registering. This can include Sales, Use, and Hotel Occupancy Tax, Employer Withholding Tax for Pennsylvania personal income tax, and Corporate Net Income Tax. For Sales Tax, businesses must indicate if they will sell taxable products or services in Pennsylvania. For Employer Withholding Tax, businesses need to consider if they will have employees working in Pennsylvania.

How to Register for a PA Tax ID

The Pennsylvania Department of Revenue encourages businesses to register for state tax accounts online through its MyPATH system, the most efficient method. New businesses without existing Pennsylvania tax accounts can use the “Pennsylvania Online Business Tax Registration” service directly from the MyPATH homepage. This online portal allows applicants to input all required information.

Existing businesses or individuals with a MyPATH account for personal income tax purposes, such as sole proprietors, should log in and select the “Register New Business Tax Accounts” option. Upon successful online submission, businesses receive confirmation, and their account information is processed, often within one to two business days.

For those who prefer traditional methods, the completed PA-100 form can be mailed to the Pennsylvania Department of Revenue. The mailing address for business trust fund taxes is: Commonwealth of PA, Department of Revenue, Bureau of Business Trust Fund Taxes, PO Box 280901, Harrisburg, PA 17128-0901. Mail-in applications have a longer processing time, ranging from several weeks to over a month. Accurate completion of the PA-100 form is important to avoid delays.