Obtain a State Tax Identification Number
For most businesses a State Tax ID Number or Sellers Permit is a requirement if you have to pay state taxes or will sell good or services. While the laws vary from state to state at Gov Easy our experts will assist you to navigate these requirement to obtain your State Tax ID Number.
Why obtain a State Tax ID Number/ Sellers Permit?
State Tax ID & Sellers Permit FAQs
- What is State Tax ID?A State Tax ID is a general term used to describe any tax identification number issued at the state level for the collection of sales and use tax or for filing business income taxes. State tax ID numbers are issued by the department of revenue or similar agency in the state where the business is located. This number is associated only with the state that issues it. If a company relocates to another state, it will have to get a new state tax ID.
- Who needs a State Tax ID or Sellers Permit?While the requirements for who must obtain a State Tax ID or Sellers Permit can vary considerably from state to state, in general a business must obtain a State Tax ID if they must pay state income tax, excise tax or are subject to sales & use tax laws in their state of operation.
- What is a Sellers Permit?A seller’s permit is necessary if you intend to sell products or services as a business entity. A seller’s permit is also known as a sales and use tax license. It allows you to purchase goods and services directly from manufacturers and distributors for resale without paying retail sales tax.
- I’m only selling items temporarily, do I still need a Sellers Permit?You will likely still need to obtain a Sellers Permit, although the requirements will vary depending on the location where you are selling and what types of items your plan to sell. For example, in California, if you make three or more sales of items subject to California sales and use tax in a 12-month period, you are required to register for a California seller’s permit and pay tax on your taxable sales. However, if you will be selling items at a location for less than 90 days, you are considered a temporary seller, and are required to hold a temporary seller’s permit. In most cases we recommend asking about the specific of your business first before making your determination to apply.