Many types of businesses require the use of a sales tax number, but some business owners don’t know why they need a sales tax number or how to apply for a sales tax number. If you’re starting a business and wondering, “What is a sales tax number?” the following are some frequently asked questions you can refer to, and some information on how to fill out your EIN number application.
What is a Sales Tax Number?
A sales tax number is also called a federal tax identification number, or an EIN number. The IRS uses your company’s sales tax number or EIN number to identify you for tax purposes, much like it uses a social security number to identify individuals for tax reasons. A sales tax number also helps the IRS keep track of your company’s tax responsibilities.
How Do I Fill Out an EIN Number Application?
You can fill out a sales tax number or EIN number application online, on our website. This way of applying for an EIN number is safe, and it makes the process go smoother and faster. IRS-EIN keeps all of your important information secure throughout the EIN number application process. The first step in applying for your EIN number online is to gather the appropriate documents, and then you will fill out information regarding your business owners’ social security numbers, reason for applying for an EIN, and projected annual earnings and wages.
Why You Need a Sales Tax Number
The IRS uses your sales tax number, or Tax ID (Federal Tax Identification Number) to identify your business entity and to keep track of your entity’s tax responsibilities. Not all businesses need a sales tax number, but many do and all businesses can obtain one.
Are There Different Kinds of Sales Tax Numbers?
There is only one type of sales tax number. When you file for a sales tax number, you will be assigned to a Tax ID that you will use for the life of your business. This number will be required on all quarterly and annual tax documents, and you will need to include it on any tax payments you make to the IRS.
Requirements for a Sales Tax Number
If your business is registered as a sole proprietor, you will only need a sales tax number in certain circumstances. If you plan to have employees or a Keogh plan, or if you will withhold taxes on wages paid to non-resident aliens, then you will need a sales tax number as a sole proprietor. There are other specific instances that require sole proprietors to have a sales tax number. We can help you sort through your situation to see if it requires a Tax ID.
The application process for obtaining a sales tax number is relatively easy and it is free. It is best to proceed with an online application, and once you have applied, you will be able to check the status of your application and get notified once you are approved for your Tax ID.
How Do I Check an EIN Number Online?
After you finish the “apply for EIN number online” process, you can perform a “check EIN number online” action on our website to find out your status. You will need the email address you used when you applied for your EIN number, and that’s it.
To apply for your EIN number today, and to take that next step in starting your business, obtain your EIN number online using IRS-EIN’s quick and easy application form. If you still have any questions, or need help with “What is a sales tax number?” feel free to contact us.