What Exactly Is a Sales Tax Number?


If you are starting a small business and looking at all the legal paperwork ahead of you, it can be confusing. Especially when you are trying to make sure you have all the identifiers needed for proper tax reporting. For example, almost every business needs an EIN to operate, with the exception of being sole proprietorships that serve as the business for individual freelancers and other businesses with one owner and no employees. Not every business needs a sales tax number, though. The differences between the two are important.

Sales Tax Numbers Explained

This tax identification number is issued by your state, and it helps you report and pay the state’s sales taxes on retail products. Since sales taxes are controlled at the state level, this number is both different from your EIN and different from state to state. Your operations in each new state you operate out of will need their own sales tax numbers.

Sales tax IDs go by a variety of names you might encounter on different state documents. They include:

  • Reseller permits
  • Sales tax registration
  • Reseller registration
  • State tax ID number
  • Certificate of authority
  • Sales tax exemption certificate
  • Sales tax vendor ID number

If you are lucky enough to be operating in a state with no sales tax, you will not need to worry about this piece of identification. You will still need to apply for EIN registration.

More Information About EIN Registration

If you are looking for an irrevocable trust tax ID number or another form of EIN for an entity other than a business, IRS-EIN-Tax-ID.com can help. We offer applications for every type of EIN, including estate and trust tax identification numbers. If you have any question about the process of obtaining an EIN and how it is distinct from your state sales tax number, contact us. Emails are answered during business hours, in the order they are received.

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