When it comes to business taxation, there are various documents and other pieces of information that you need to comply with the Internal Revenue Service’s requirements. All businesses operating in the United States or any of its territories (such as Puerto Rico) will need an Employer Identification Number. But you may need a separate tax identification number depending on what state your company is located/conducts its business.
How to Obtain a State Tax Identification Number
Each state has different requirements when it comes to conducting business and taxation. Even local municipalities may have additional requirements. Therefore, it’s necessary to get all the information ahead of time so that when it is time to file taxes, you can do so easily.
According to the U.S. Small Business Administration, whether or not you need a state tax ID number depends on if your business needs to pay state taxes. Again, you will need to defer to each state and their respective laws when it comes to income, employment, state and other taxes.[Read more…]