State Tax ID vs. EIN
Your EIN identifies your business to the IRS. States often issue their own numbers for the taxes they administer.
EIN (federal)
- Issued by the IRS
- Used for federal income tax, payroll tax, and information returns
- Needed by banks and many vendors
State tax IDs
- Sales and use tax permit — if you sell taxable goods or services in the state
- Withholding account — if you have employees whose state income tax you withhold
- Unemployment insurance account — once you have employees in the state
- Other accounts for specific taxes, such as franchise, excise, or tourism taxes
Some states use your EIN as part of the state account number; others assign a completely different number. You register with each state agency separately.
Related service: Business Registration Services →