If you’re starting a business in the U.S., you might wonder how to get a state tax ID number — also known as a state EIN or state employer ID. This number is different from your federal EIN and is required for paying state taxes, hiring employees, or selling taxable goods and services.
What Is a State Tax ID Number?
A state tax ID number is issued by your state’s department of revenue. It’s used to track your business for state-level taxes, which may include:
- Sales tax
- State income tax withholding
- Franchise tax
- Unemployment tax
Whether you need one depends on your state’s requirements and your business structure.
Who Needs a State Tax ID?
You may need a state tax ID number if:
- You hire employees
- You sell goods or services subject to sales tax
- Your business must pay state excise or franchise taxes
- You operate in a state with state income tax obligations
Steps to Get a State Tax ID Number
1. Form Your Business Entity
Register your business with the state (LLC, corporation, or partnership). This is a prerequisite in most states before you can apply for a tax ID.
2. Get a Federal EIN
Apply for an Employer Identification Number (EIN) from the IRS at irs.gov. It’s often required before applying for a state tax ID.
3. Visit Your State’s Revenue Website
Each state has its own application portal. Search for “[Your State] Department of Revenue” or “Business Tax Registration.”
4. Complete the State Tax Registration Application
Provide business details such as:
- Legal business name
- Federal EIN
- Business address
- Type of entity
- Industry type
- Expected number of employees
5. Wait for Approval
Processing times vary. Some states issue the number instantly; others may take a few business days.
Examples by State
- California – Apply via the California Department of Tax and Fee Administration
- Texas – Use the Comptroller of Public Accounts
- New York – Register through the NY Department of Taxation and Finance
Final Thoughts
Getting a state tax ID number ensures your business stays compliant with state tax regulations. It’s an essential step if you plan to hire employees, collect sales tax, or operate in a state with business tax laws.
