Sales Tax Issues

If the prospective business is one which provides taxable services or products, it is necessary to obtain an EIN, or Employer Identification Number, from the State Department of Revenue in the state where the business operates.

As mentioned earlier, an EIN, or Employer Identification Number, is a special identification number that the Internal Revenue Service assigns to every entity that pays taxes in the United States. In order to receive an EIN, not only must an SS-4 form must be submitted. Additionally, it is required that the business obtains a special state license before receiving the EIN. This license is available through individual state franchise tax boards.