Is a Missouri Tax ID the Same as an EIN?
Understand the critical differences between federal and state business tax identification numbers. Learn their distinct purposes and how to acquire them.
Businesses require identification numbers for tax and regulatory compliance. This article clarifies the distinction between a Federal Employer Identification Number (EIN) and a Missouri Tax ID. Understanding these distinct identifiers is important for proper business operation and adherence to tax obligations.
Understanding the Federal Employer Identification Number
A Federal Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity. This number functions as a business’s federal tax ID, similar to how a Social Security Number identifies an individual for tax purposes. It is a permanent identifier and is not reused, even if a business closes.
Businesses need an EIN for various federal tax obligations. This includes hiring employees, operating as a corporation or partnership, and filing certain federal tax returns. An EIN is also required for opening business bank accounts, applying for business licenses, and establishing business credit.
Understanding Missouri Tax Identification Numbers
A Missouri Tax Identification Number, also known as a Missouri Tax ID or a Department of Revenue (DOR) ID, is an identifier issued by the Missouri Department of Revenue. This number registers a business with the state for state-specific tax purposes. It is distinct from a federal EIN and is used solely for interactions with Missouri state agencies.
Businesses in Missouri need a state tax ID for various state tax types. These include sales tax, vendor’s use tax, consumer’s use tax, employer withholding tax, and corporate income tax.
Distinguishing Between EINs and Missouri Tax IDs
A Federal Employer Identification Number (EIN) and a Missouri Tax Identification Number are not the same. The EIN is a federal identifier issued by the IRS for federal tax purposes, while the Missouri Tax ID is a state-specific identifier issued by the Missouri Department of Revenue for state tax obligations. They serve different governmental bodies and are used for different tax responsibilities.
These two identification numbers are related in practice. The Missouri Department of Revenue requires a business to have an existing federal EIN before it can register for state tax accounts. This establishes a sequential relationship, where the federal EIN is a prerequisite for obtaining the state tax ID.
Obtaining Your Federal and State Tax IDs
Obtaining a Federal Employer Identification Number (EIN) is a straightforward process. The most common and fastest method is to apply online through the IRS website. When applying, a business needs to provide its legal name, address, entity type, and the responsible party’s Social Security Number or ITIN. Upon successful completion of the online application, the EIN is issued immediately, allowing for instant download or printing of the confirmation letter. Other application methods, such as fax or mail, are available but involve longer processing times, ranging from a few business days to several weeks.
To obtain a Missouri Tax Identification Number, businesses register with the Missouri Department of Revenue. The primary method for registration is through the state’s online new business registration system. During this online process, businesses provide details such as their business type, physical location, contact information, and their previously obtained federal EIN. Businesses also select the specific state tax types for which they need to register, such as sales tax or employer withholding tax. Online registration can result in receiving the Missouri Tax ID and sales tax license within approximately two business days.