A state tax ID number is similar to the EIN. Whether you’ll need one depends on the state in which your business operates. Often, if the state requires you to pay business taxes, you need a state tax ID number. Some states may only require you to have a state tax ID if your business meets certain conditions, such as retail sales or a specific number of employees.
Your tax obligations vary at the state and local levels. You’ll need to research your state’s laws regarding employment, business-related, and income taxes to know whether you’re required to get a tax ID number. To apply, contact the appropriate department for your state. This could be the Comptroller Office, Secretary of State, Department of Taxation and Finance, or other departments. Check your state’s government website for more information.