What is the Difference Between A Federal and a State Tax ID Number?

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Managing and operating a business is difficult enough as it is. Figuring out all the necessary steps you need to take to properly file your business’ taxes is even more challenging. IRS EIN Tax ID Filing Service can help you make heads or tails of the entire process, and help you understand complicated concepts, such as getting a partnership tax ID number or how to apply for EIN for irrevocable trust. One of the most commonly confused concepts is the difference between a federal and state tax ID number. Make sure you understand this subtle distinction before you file the taxes for your business.

The Simplicity of Using IRS EIN Tax ID Filing Service

First things first, a federal tax ID number is the same thing as an EIN, or Employee Identification Number. This number has nine digits and is used for determining and tracking your business’ federal tax obligations. The EIN is used many times when filling out your annual tax forms. Your EIN identifies your business as an operational entity that pays taxes to the IRS. Alternatively, your state tax ID number is only useful for filing state taxes. You will never need to use your state tax ID number outside of this specific situation and never with any entities besides the IRS. Additionally, you need to file state payroll returns for every employee who works for your business. It may also be useful to understand what a trust tax id number is.

Whether you are applying for an irrevocable trust tax ID or simply trying to make the tax-paying process simpler, IRS EIN Tax ID Filing Service is here to help your business. We provide step-by-step instructions for any complicated process, such as receiving an EIN for irrevocable trust. The support team is also available to help you 24/7. Turn to IRS EIN Tax ID Filing Service to make the process of completing any official government application as simple as possible.

Building a business is a feat of personal strength, and not for the faint of heart. A lot of blood, sweat, and tears goes into launching an infant company, and watching it blossom and thrive can be one of the crowning achievements of your professional life.

There are a lot of hassles to overcome, including tons of paperwork and applications to process. Thankfully, IRS EIN Tax ID Filing Service has your back when it comes to answering questions about your employer identification number and state tax ID number.

Federal vs. State ID Number

When it comes to a federal vs. state ID number, things can sometimes get confusing. A federal ID number is basically the same as an employer ID number, and is a unique set of nine digits (formatted 12-3456789) that defines your business as a working, tax-paying entity by the Internal Revenue Service (IRS) within the United States of America. You use your federal ID number to conduct tax-related tasks, such as opening a business bank account, or filing your business taxes in April.

A state tax ID is used solely for state tax reporting. They aren’t portable, so they are generally not requested by other agencies or third parties. You need to file state payroll returns for each employee that works for your company.

Apply for EIN

If you would like to fill out an EIN application online or check EIN status, you can do this easily with IRS EIN Tax ID Filing Service. Our safe and secure website enables you to get your EIN within a couple of hours, and you can always check the status of your application online.

Select Your Entity Type to Apply for a Federal Tax ID Today