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Business Facts

  • There are 28 million small businesses in the U.S. -- which outnumber corporations 1162 to 1.
  • 70% of small businesses are owned and operated by a single person.
  • Small businesses employ 57% of the country's private workforce.
  • Small businesses pay 44% of U.S. payroll.
  • Only 50% of businesses survive five years.
  • Immigrants make up 12.5% of small business owners nationwide.
  • 60 to 80% of all new jobs come from small businesses.

For further assistance with filing a State Tax ID or questions regarding the process please contact our specialists at 888-300-3039.

If your new business is going to sell goods or hire employees, most states require you to register for a state tax ID number.


When You Need a State Tax ID

  • You collect and pay sales tax or qualify to purchase items tax free. If you are selling tangible goods to consumers or businesses, in most states you are also required to charge sales tax on the items you sell.  Your state will require you to apply for a sales tax permit and will assign you a state tax id number.  In most cases a sales tax permit will also allow you to buy items tax free when you intend to resell them.

  • You have employees. Every state has some form of unemployment tax and many states also require you to withhold state income tax from employee’s pay.  If you intend to hire employees, you will need to obtain a tax id number in order to set up an employer tax account with your state.

  • You operate your business as an LLC. If you are the sole owner of an LLC, the IRS does not require you to have a separate tax id number or even file a separate tax return, but most states will see your LLC as a separate tax entity.  Most states will require you to have a state tax id for the LLC, so you can file a separate franchise tax return with the state.

You collect and pay sales tax or qualify to purchase items tax free. If you are selling tangible goods to consumers or businesses, in most states you are also required to charge sales tax on the items you sell.  Your state will require you to apply for a sales tax permit and will assign you a state tax id number.  In most cases a sales tax permit will also allow you to buy items tax free when you intend to resell them. (Sales tax taxing your brain? Find out more about Outright.com’s new and improved sales tax tracking!) You have employees. Every state has some form of unemployment tax and many states also require you to withhold state income tax from employee’s pay.  If you intend to hire employees, you will need to obtain a tax id number in order to set up an employer tax account with your state. You operate your business as an LLC. If you are the sole owner of an LLC, the IRS does not require you to have a separate tax id number or even file a separate tax return, but most states will see your LLC as a separate tax entity.  Most states will require you to have a state tax id for the LLC, so you can file a separate franchise tax return with the state. - See more at: http://outright.com/blog/when-do-i-need-a-state-tax-id-number/#sthash.AA6kenGH.dpuf
You collect and pay sales tax or qualify to purchase items tax free. If you are selling tangible goods to consumers or businesses, in most states you are also required to charge sales tax on the items you sell.  Your state will require you to apply for a sales tax permit and will assign you a state tax id number.  In most cases a sales tax permit will also allow you to buy items tax free when you intend to resell them. (Sales tax taxing your brain? Find out more about Outright.com’s new and improved sales tax tracking!) You have employees. Every state has some form of unemployment tax and many states also require you to withhold state income tax from employee’s pay.  If you intend to hire employees, you will need to obtain a tax id number in order to set up an employer tax account with your state. You operate your business as an LLC. If you are the sole owner of an LLC, the IRS does not require you to have a separate tax id number or even file a separate tax return, but most states will see your LLC as a separate tax entity.  Most states will require you to have a state tax id for the LLC, so you can file a separate franchise tax return with the state. - See more at: http://outright.com/blog/when-do-i-need-a-state-tax-id-number/#sthash.AA6kenGH.dpuf

State Tax ID