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How to Get a Tax ID in Your Home State

Published on October 13, 2016, by in Personal Finance.

In every state, any type of business must have a state tax ID. Otherwise known as a state business license, this documentation is required of online, wholesale and even small mom and pop stores. The reason an IRS tax ID number in your home state is necessary is so you are held liable for collecting sales tax from your customers. This guarantees that whomever you purchase from, is not penalized for you neglecting to collect taxes. Every state has a comprehensive listing of how to go about filing for your specific Tax ID.

To find your home state tax ID application, visit the internal revenue service’s website. From there, navigate to the state you plan on conducting business in. You will need to register your business if you haven’t already. Next, call the IRS to generate your federal EIN. They can be reached at:  800-829-4933. If you are a sole proprietor you may use your social security number and do not need to obtain a separate EIN number. Once you’ve written down your EIN, download the tax application that can be found on your state’s website. Accurately fill out all requested information, sign the card and mail to the correct address. Please make sure your filing fee is included in your packet of information.

Obtaining a tax ID in your home state is necessary to stay in line with the government and run a legitimate business. Your tax ID number counts as proof that you’re maintaining an upstanding company and collecting taxes from others in your state. With the exception of Montana and New Hampshire, all other states collect taxes from consumers. In addition to obtaining a tax ID, you may also need to get different permits and licensing specific to your business.

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