State Tax ID

In addition to the federal EIN, some US states require businesses to register an additional State Tax ID to file sales tax, state income tax, or employment tax.

Properly registering the right tax IDs for each state helps a business avoid future penalties for missing requirements.

Why use this service at AWE Global?

Meets tax filing obligations

Eligible to file sales tax and employment tax as required by the state.

Avoid penalties

Reduces the risk of penalties for missing a required tax ID.

Legal operation

Ensures the business operates in compliance with each state’s specific regulations.

Process

01Determine which states require a separate tax ID
02Prepare the related business documents
03File the application with the state tax authority
04Receive the state tax ID

Documents / information needed

  • Federal EIN
  • Certificate of business formation
  • Information on business activity within the state

Common mistakes to avoid

  • Confusing a state tax ID with the federal EIN, thinking the EIN is enough for every tax obligation.
  • Not checking whether the state you’re registering in requires a separate tax ID before starting business.
  • Missing the registration deadline, leading to back taxes and late-filing penalties.

Frequently asked questions

Which states require a separate tax ID?

It depends on the state and business type; some states don’t collect state income tax and so don’t require one.

Can I register a state tax ID myself?

Yes, but you need to correctly understand each state’s rules to avoid mistakes.

Is there a penalty for not registering a state tax ID?

Yes, a business may face penalties or back taxes if it was required to register but didn’t.