If you are thinking of starting your own business, then you must pay to Caesar what belongs to Caesar that is; pay taxes to the IRS. This is an inevitable part of starting any business. In some cases, depending on the type of business you plan on starting you might need a tax identification number. Here is how to apply for a MN tax id.
What is a Taxpayer Identification Number?
Simply put, a taxpayer identification number is a seven digit number that can either be granted by the IRS or the Social Security Administration. In Minnesota, the IRS requires you to have a tax ID number if your business
– Has employees
– Makes taxable sales
– Is a licensed insurance company and issues policies
– Offers any medical or dental services and products
– Provides waste collection and management services
You are supposed to use your tax ID on all documents submitted to the IRS to pay taxes or claim benefits and exclusions.
Factors to consider before you apply
Before applying for your tax ID in Minnesota, it is vital that you first
– Consider your venture’s structure
– Decide your venture’s physical address as it is among the application requirements
– Determine the individual or entity that will serve as your responsible party.
How to apply for a tax ID in Minnesota
To obtain a Minnesota Tax ID, you can either
– Visit the Minnesota Department of Revenue and fill the ABR form or
– Apply online at Business Tax Registration online portal.
If you decide to apply online, then first download the ABR form and its instructions under the Business registration forms and instructions category. Besides the form, you will also need
– A federal employer ID number
– Business owner’s SSN
– Business name and certificate of assumed name if applicable
– Contact phone number and your email address
– The North American Industry classification code
– The business genesis date
If you cannot go about all these activities online, feel free to visit the Minnesota Department of revenue or contact them by phone to speak to a representative who will help you out.