Are you about starting a new business and need a tax ID number? If YES, here is exactly how to get a federal tax ID number for a new company in 5 simple steps.
Tax is one of the major means of generating funds for the governments of any country so as to enable them finance their expenditure. It is therefore very important for all businesses that exist in a country to pay the appropriate tax. Truth is that each country has its own laws governing the payment of taxes and they administer it very seriously. That is why you might see people, including big time business men / women and even public figure go to jail if they evade tax.
If you have the intention of establishing your own business, then you should have it at the back of your mind that you would have to pay a certain compulsory fee (tax) to the government of your state and country as long as your business exist. If you don’t adhere to paying your tax as at when due, you stand the chance of losing your business and investment.
Although in some countries, the laws governing the payment of tax is very strict especially in the developed world, yet in some countries under the third world, the laws are relaxed a bit. But over and above, paying your tax is mandatory and it shows that you are a responsible and law abiding citizen.
In case you didn’t know, you would require a tax clearance to be able to access loans from banks and even grants from the government. As a new business owner, you would also be required to obtain a Federal Tax Identification Number (ID) for your new business from the nearest Tax office around you. Quickly, a Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service of a country in the administration of tax laws.
Now, if you have made up your mind to do your business the right way, then the following steps sure is capable of guiding you on how to obtain a Federal Tax ID for your new business;
How to Get a Federal Tax ID Number for a New Company
1. Register Your Business
If your business is not registered, then it might be impossible for you to obtain a Federal Taxpayer Identification Number from the federal government of your country. So the first thing that is expected of you before applying for a Federal Tax ID from the government of your country is to formally register your business. With the registration details of your business, it makes it easier to identify and access your business.
2. Get the Necessary Information and Requirements from the Federal Internal Revenue Office of your Country
You might want to visit the nearest Federal Internal Revenue Office around you to enquire on all that is needed and the process to follow in order to obtain your own Federal Taxpayer Identification Number (ID) for your new business.
The fact is that you can easily find Tax offices scattered all around town so that people can free access them. If you find any tax office close to you, walk in and you will surely meet someone that would provide answers to all your enquiries and requests.
3. Obtain the Required Form
If you are satisfied with the answers you gotten from the local office of the Federal Internal Revenue Services, then you should request for application form for the Tax ID. In some cases you would be provided with the hardcopy of the form, while in some cases you are might be required to complete the application form online and then download and print before submitting it. It is important to note that the application form for a Federal Tax ID is free. You are not expected to pay a dime to obtain it.
4. Complete and Submit the Required Form
It is very important that you complete your application form correctly. You are required to provide certain information like; the name of your business, the address where your business is situated, phone numbers, e mail address, the nature of business you are into and some other information that is unique to each country’s Tax office.
The information you provide in the application form is what they may use to classify the kind of tax and amount that you are required to pay. In some countries, if the government of the country wants to encourage investors to invest in certain industries, they give a tax rebate or reduce the tax in that industry.
For instance, the Federal government of Nigeria is giving tax rebate to investors in the Agriculture sector. This is to encourage them to build the sector and step up exportation of food and agriculture produce from Nigeria to the rest of the world. So it is important to state the industry your business falls into.
5. Obtain Your Taxpayer Identification Number
If you have fulfilled all the stated conditions and your application form is accepted, then you would need to wait for few days for the form to be processed. Once your form is processed, the Federal Internal Revenue Office then generates your own unique Taxpayer Identification Number (TIN) within few days of submitting your application form. In some countries you can get your Tax ID on the spot, why in some countries you will get it in less than a week or so.
Once you have successfully obtained your own Federal Taxpayer Identification Number for Your Business, then you must ensure you file in your tax monthly. What is the use of obtaining your Tax ID when you know you won’t be diligent in paying your tax?
The truth is that there are a lot you stand to gain when you pay your tax as at when due. With your Tax ID, you can access seed funds for new and small businesses from the government in your country; you can access loans from the bank to grow your business and other benefits that are unique to each country of the world.There you have it! The simple process you need to follow to obtain your own Federal Taxpayer Identification Number (TIN) for your new business.
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