Get an Illinois Tax ID for Your Business with GovDocFiling
Get your Illinois tax ID without the hassle. GovDocFiling walks you through the EIN process, so you can get started.
Let experts take care of the paperwork while you grow your business.
What is a Tax ID?
A tax ID often referred to as an EIN (employer identification number), is a unique number the government assigns to track businesses for tax reporting. It’s an important legal requirement in many states, especially for businesses that have employees and pay salaries.
You need an Illinois tax ID for filing taxes, opening a business bank account, and securing the necessary licenses or permits. There are different types of tax IDs as discussed below, but our main focus here will be on EIN as that’s what you’ll need for your business.
What are the Different Types of Tax IDs?
Our main focus here is the EIN, but it’s only one part of the broader tax ID picture. Many business owners aren’t clear on how an EIN differs from other Tax IDs.To help, we’ll explain the most common tax IDs and their purposes.
Employer Identification Number
The Employer Identification Number (or Federal Tax ID) identifies a business for tax reporting. Companies need an EIN to file tax returns if they employ staff and operate as any of the common business structures, like corporations, partnerships, or LLCs. Even sole proprietors and government agencies need one. To apply for your EIN, you need to fill out Form SS-4 and send it to the IRS.
Social Security Number
The Social Security Administration is responsible for issuing SSNs to U.S. citizens, permanent residents, and temporary workers. Sole proprietors without employees can also use an SSN for tax filing, even though it is not a business tax ID number. Because your SSN is linked to your personal records, you won’t need to get a separate business ID unless you expand or begin hiring.
Individual Taxpayer Identification Number
The ITIN is issued by the IRS to people who can’t get an SSN but need to file taxes. It’s primarily used for tax reporting by residents, nonresident aliens, and dependent family members. It doesn’t provide work authorization, but it allows you access to basic financial services. To obtain an ITIN, applicants are required to complete Form W-7 and provide identification and proof of status.
State Taxpayer ID Number
A state tax is not the same as a federal EIN. In Illinois, you need to register for a state tax if your business collects sales tax, has employees, or meets other state-specific requirements. Like many states, Illinois requires businesses to obtain a state tax ID to comply with local tax and employment laws. This ensures proper registration and reporting for sales and payroll obligations.
Why Apply for a Tax ID: Key Benefits
You need an Illinois tax ID to legally run an LLC, S-Corp, or corporation. A tax ID is also required to meet all legal requirements. Here’s why you need one.
Improved Business Reputation
A tax ID strengthens your credibility by showing that your business is properly registered and recognized under the law. Having an Illinois tax ID reassures clients, vendors, and partners that you’re formal and that your tax obligations are in order.
This makes a real difference when negotiating contracts, building long-term relationships, or competing for opportunities. Many organizations prefer to work with businesses that can prove compliance, making your Illinois tax ID a necessity.
Simplified Tax Filing
A tax ID makes tax reporting with the IRS much smoother by ensuring business earnings and income are properly recorded. This significantly reduces the likelihood of making costly mistakes that can lead to reporting issues or more severe penalties.
Having a tax ID makes refund processing faster, allowing you to access your funds quickly. It also supports tax management, keeping records in order and reducing stress during tax season — giving you one less thing to worry about.
Authority to Hire Staff
You need a tax ID to hire employees and manage payroll correctly. You’ll need your Illinois tax ID to report taxes, set up withholdings, and comply with federal and state regulations. As your business grows, having one allows you to expand your team.
Additionally, a tax ID helps ensure that workers are correctly classified and that accurate and compliant payroll records are maintained. This sets the foundation for smooth hiring and staff management while avoiding scrutiny from the IRS.
Safeguarding Personal Data
Obtaining an Illinois tax ID protects your personal information by reducing the need to use your SSN for business purposes. For example, sole proprietors relying only on an SSN can put their information at risk of fraud or identity theft.
A tax ID solves that by letting you use it for contracts, bank accounts, and tax filings. So, your sensitive personal data remains separate from routine business dealings, reducing the risk of vital details being exposed to unauthorized individuals.
Access to Business Financing
A tax ID creates a separate credit profile for your business that doesn’t mix with your finances. This separation is important if you plan to secure loans, attract investors, or open credit lines. Banks also require a tax ID to open business accounts.
This makes tax IDs essential for handling financial transactions. When you have one, you’ll be better prepared to apply for financing and negotiate favorable terms. You’ll also attract investors and maintain financial boundaries that are within the law.
Faster Business Registration
If your business undergoes restructuring, merger, or changes ownership, a tax ID may be required. For example, transitioning from a sole proprietorship to an LLC or corporation needs an EIN. This allows the IRS to track accurately.
Having an EIN makes it easier to sign contracts, apply for funding, and expand operations. Plus, securing a tax ID early when you change your business structure helps you avoid setbacks and keep your business prepared for future growth.
Open a Business Bank Account
It’s often difficult to open a business bank account under your business name if you don’t have an EIN. Most banks require a tax ID to verify that your business is legitimate. With an EIN, you can prove that your company is a separate legal entity.
Once your account is set up, you gain both credibility and convenience. Clients can pay your business directly, and your financial records stay organized for tax season. Having a bank account helps you to manage your finances professionally.
Obtain Licenses and Permits
An Illinois tax ID is often required to apply for business licenses and permits. Many regulatory agencies demand proof of tax registration before issuing permits and licenses. Having your tax ID ready makes the application process easier and faster.
Having a tax ID helps your business fulfill all legal requirements and comply with state regulations. This prevents fines and interruptions, allowing your business operations to continue smoothly in the state of Illinois without delays or setbacks.
Why Should You Outsource Your Illinois Tax ID Application?
Applying for an Illinois tax ID involves filling out lengthy forms, which many find overwhelming. Here’s why you should outsource to professionals.
Saves Time by Reducing Paperwork
Applying for an Illinois tax ID on your own can stretch into weeks. Hiring professionals speeds up the filing process and gives you more time to focus on running your business.
Reduces Application Filing Mistakes
Mistakes or missing details can stall your Illinois tax ID approval. Professionals are familiar with the process and can help reduce delays that often occur during state reviews.
You Get Expert Guidance
The paperwork required isn’t always clear. A professional knows exactly what’s needed and makes sure your Illinois tax ID application is submitted correctly the first time.
Ensures Regulatory Compliance
An Illinois tax ID ties your state and federal reporting together. Outsourcing ensures your registration aligns with IRS guidelines and Illinois tax rules, eliminating mismatches.
Handles Follow-Ups On Your Behalf
Some applications come with a lot of questions. An expert manages this back-and-forth communication directly, saving you time while keeping things moving with your application.
Offers You Peace of Mind
Outsourcing your Illinois tax ID filing takes the administrative pressure off. You can stay focused on growing your business, knowing that experts are handling the EIN application process.
How to Apply for an Illinois Tax ID
You have to deal with several government agencies when applying for an Illinois tax ID.
Here’s an overall guide you can use to get this done efficiently.
1. Confirm Your Tax ID Eligibility
Before starting your application, confirm that you need a tax ID. If you plan to employ workers, federal rules require you to get one. Partnerships, corporations, sole proprietorships, and LLCs must apply for a tax ID to remain compliant.
Verifying this information in advance ensures you stay aligned with IRS requirements and avoid unexpected delays. It also helps prevent future issues with taxes or daily operations that depend on having the correct business identification in place.
2. Collect All Required Information
Next, ensure you have all essential documents ready before you begin. This includes the registered business name, any trade name, and the physical address. You’ll also need the SSN, ITIN, or EIN of the person responsible for the business.
Also, choose a business structure, such as sole proprietorship, corporation, or LLC. You should also record the official start date and state why you’re requesting a tax ID. Preparing these details makes the process smoother and faster.
3. Decide The Filing Method
There are several ways to apply for a tax ID: you can do it online, by fax, mail, or by phone if you’re outside the U.S. The online system is the quickest option, issuing the number on the same day, while the mail option may take up to six weeks.
Before making a decision, review the processing times and requirements for each method. This way, you can select the option that works best with your timeline and ensure your application reaches the right office on time, without any back-and-forth.
4. Select a Trusted Filing Service
If you’d rather not manage the paperwork yourself, use third-party filing providers. Companies like GovDocFiling charge a fee to handle the EIN request on your behalf. They simplify the process with a guided online form, reducing filing errors.
Most service providers also verify IRS requirements for compliance, which is important because an Illinois tax ID can’t be issued without the necessary documents. Using a provider is optional, but it can be a helpful way to avoid delays.
5. Complete the Application Form
Accuracy is key when completing your Illinois tax ID application. You’ll need to fill out the form, and even minor errors can slow down the process or result in rejection. Double-check business names and other information before you submit.
Additionally, keep a secure copy of your application for your records so you’ll have proof of what was filed. Having this copy also allows you to respond quickly if the IRS requests clarification or additional documentation after you’ve submitted everything.
6. Submit Your Application
After finishing your application, send the completed forms to the IRS. Online applications for Federal EIN are processed immediately, giving you your tax ID on the spot. Faxed submissions are usually handled within four business days.
If you choose to mail, expect processing to take several weeks, depending on the IRS workload. Overall, choose the method that matches the speed at which you need the tax ID number. There’s always the option of hiring expert services to handle this.
7. Receive and Start Using Your EIN
After you get your tax ID, whether by mail or email, keep the confirmation letter in more than one secure place. You’ll need to refer to it often for filing business taxes, applying for permits, opening bank accounts, and other official transactions.
It helps create a calendar to track deadlines and compliance requirements tied to your the EIN. Staying organized from the beginning saves valuable time and prevents missed filings or penalties. Treat your tax ID as a core part of your business identity.
8. Maintain Compliance
You need to maintain reporting your taxes and any related changes after receiving your Illinois tax ID. This means submitting the required taxes, such as sales, use, withholding, unemployment, and corporate income taxes, within the state deadlines.
Missing filings can result in severe penalties, additional interest costs, or even collection actions that harm your business. Consistent reporting also strengthens your company’s standing with banks, state regulators, and potential investors.
Why Choose GovDocFiling to Apply For Your Illinois Tax ID
Securing an Illinois tax ID application can be overwhelming, and GovDocFiling helps make the process seamless.
Here’s why you should outsource the process to experts.
Round-the-Clock Filing Access
GovDocFiling’s application portal is open 24/7, giving you the freedom to submit your request whenever it’s convenient. With a reliable system, you can count on uninterrupted access and consistent service.
Single-Page Application Process
GovDocFiling streamlines tax ID filing into one place, making the process faster and more efficient. This works for all business types, reducing confusion and shortening the time needed to complete forms.
Step-by-Step Filing Support
Built-in help appears throughout the form, explaining what’s required in each field. These instructions help reduce mistakes and ensure that your details are entered correctly from start to finish.
Fast Processing with No Fee
GovDocFiling offers expedited processing at no additional fee. Applications are processed quickly through the system, and your EIN is delivered promptly, saving you both time and unnecessary costs.
Secure and Prompt EIN Delivery
Your EIN will be sent to you by email once it has been processed, ensuring quick delivery. The platform also protects sensitive application details using advanced security systems, keeping your information safe.
Dedicated Support Hours
Customer service is available from 7:00 AM to 7:00 PM PST, accessible via both phone and email. Their support team responds directly to questions and provides help throughout the application process.
FAQ
An Illinois tax ID is a business identification number issued by the Illinois Department of Revenue (IDOR). It’s also known as the Illinois Department of Revenue Account ID Number and was previously referred to as the Illinois Business Tax (IBT) number.
This Illinois tax ID is required to manage state-level obligations, including sales tax collection, employee withholding, and unemployment insurance contributions. Without it, you’re not legally permitted to handle most business-related tax responsibilities.
The quickest way to get an Illinois tax ID is through the MyTax Illinois portal. To register, select “Register a New Business” and follow the prompts carefully. Once you provide the correct business details and submit the form, the portal issues your tax ID instantly.
It’s essential to provide accurate information. For example, if you indicate that you’ll have employees, IDOR will automatically register you for withholding tax. If you sell taxable goods or services, you’ll also be set up with the appropriate sales tax accounts.
The Illinois tax ID and the Federal EIN serve different purposes. You’ll use it for federal tax filings, and payroll reporting. In contrast, the state of Illinois issues the tax ID, which businesses use specifically for withholding, sales, use, and excise taxes.
Confusing both Tax IDs can cause problems. A Federal EIN alone won’t allow you to pay Illinois sales or withholding taxes, and an Illinois tax ID won’t be accepted on federal filings. Each plays a different yet vital role in the Illinois tax ecosystem.
Yes. While online registration is the fastest route, IDOR also offers several offline methods to get your Illinois tax ID. You can complete Form REG-1 (Illinois Business Registration Application), then mail or fax it to the Illinois Department of Revenue.
The mailing address and fax numbers are included on the form instructions, and IDOR will send your tax ID back once it has been processed. You can apply in person at one of IDOR’s offices across the state or use third-party services, such as GovDocFiling.
An Illinois tax ID usually mirrors your Federal EIN, but has an additional sequence number at the end. It appears as follows: XX-XXXXXXX-000. The first part is your federal EIN, and IDOR assigns the last three digits to distinguish accounts or tax types.
Your Illinois tax ID appears on various state tax documents, including the IL-941 (Withholding Income Tax Return) and employee W-2s. You’ll also find it on official notices from IDOR, account statements, and records within your MyTax Illinois profile.
Ready to Begin Your Illinois Tax ID Application?
GovDocFiling simplifies the application process. Additionally, you receive 24/7 guidance and dedicated support teams.
Let experts manage the process — outsource your Illinois tax ID application today.