How to get a state tax ID number in 2024

Alana Rudder

BLUEPRINT

Updated 3:55 p.m. UTC April 17, 2024

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What is a state tax ID number and what is it for?

A state tax ID number is sometimes called a state employer ID, state EIN or state tax registration. It’s assigned by a state to identify a business for tax administration purposes, and since its state-specific, the format varies by state. Businesses use state tax ID numbers to hire employees, file and pay state business taxes (such as sales taxes) and apply for some state business licenses and permits.

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Do I need a state tax ID number?

Whether you need a state tax ID number depends on several factors and varies by state. You may, for example, need a state tax ID number if you:

Have hired employees or plan to.
Sell goods or services that are subject to sales tax.
Operate in a state that has a general tax for all businesses.
Have a particular business structure, such as a partnership.
Need state permits or licenses to operate your business.
Sell certain types of products, such as alcohol or tobacco.

For example, in Minnesota, you must obtain a Minnesota tax ID if your business makes taxable sales in the state, hires employees, performs taxable services (such as building maintenance), makes estimated quarterly taxes (as most LLCs do), pays taxes on certain products (such as tobacco or insurance premium products) or files an S corporation or partnership tax return.

In Hawaii, all businesses must obtain a state tax ID number regardless of their structure or purpose. This number allows businesses to pay a required general excise tax, a tax that may differ in amount depending on your business’s industry. Other types of taxes for which you will need a Hawaii state tax ID to pay include withholding taxes (if you hired employees), corporate income taxes and public service company taxes.

To learn the tax ID requirements in your state, check with your state’s department of revenue. To find your state’s department of revenue website, look up your state on Northwest Registered Agent’s state resource library.

How to get a state tax ID number

To get a state tax ID for your business, you must follow a few steps, including setting up your business in your state, applying for an EIN, registering your business with either the state’s department of revenue or department of taxation and receiving your state tax ID number.

1. Set up your business in your state

Setting up your business generally requires you to choose a business name, choose a registered agent and file articles or organization (or a similar form) with your state. To learn more about how to set up your business, read our how to start an LLC guide.

2. Apply for an employer identification number (EIN)

Once you have set up your business, you can apply for an EIN, a number that’s issued by the IRS to identify your business for tax administration purposes. Read our EIN guide for more information.

3. Register with the state department of revenue or department of taxation

With your business formation documents and EIN in hand, you can now apply for a state tax ID number. This number is often obtained through your state’s department of revenue or department of taxation, and you can generally apply online.

For example, in Virginia, you must apply for a state tax ID by setting up a Virginia Tax and Virginia Employment Commission account, which requires only one business account setup. You can set up this account on the Virginia Department of Taxation website.

In Minnesota, you must apply for a state tax ID using the Minnesota Department of Revenue’s business registration website page.

To find your state’s department of revenue or department of taxation website, search for your state’s name on the IRS’s government sites page or Northwest Registered Agent’s state resource library.

4. Receive your state tax ID number

Once you’ve registered your business with your state’s department of revenue or department of taxation, you will receive a state tax ID number. You should keep this number with other important business records, like your EIN confirmation page and business formation paperwork.

Tip: Many business formation companies, such as Inc Authority, will obtain a state tax ID number for free for businesses that use their LLC formation services (also a free service, but you must pay state filing fees). Others will help you cut through the confusion and easily obtain this number for a fee. To find the best business formation company for your needs, read our best LLC services list.

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Lowest published package price

$249

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Northwest Registered Agent

Learn More

Via Northwest’s website

Free version available

Lowest published package price

$39

Live chat

Yes

Frequently asked questions (FAQs)

In some cases, yes; in others, no. The IRS issues an EIN to identify a business for tax administration purposes. A tax identification number (TIN) covers two types of federal identification numbers: an EIN and a Social Security number (SSN).

However, states also issue tax ID numbers. These are different numbers from federal tax ID numbers and are issued to identify a business in a particular state for tax administration purposes.

To find your state tax ID number, log into the account you made on your state’s department of revenue or department of taxation website. You should be able to retrieve the number from this account. You can also review letters from the state regarding your business, where you will often find your state tax ID number listed. Forms such as W-2 and state unemployment tax forms may also include the number.

No, a federal EIN can be used from state to state as it identifies your business on a federal level for tax administration purposes. However, a state EIN or state tax identification number only identifies your business before one state, usually the state in which the business operates. If the business would like to expand its operations to multiple states, it may have to obtain a state tax ID number in all states in which it is registered to do business.

Many sole proprietorship or single-member LLC owners simply use their personal Social Security numbers to pay business taxes via their personal tax returns. However, to limit the number of times they have to supply their Social Security numbers (and so potentially expose themselves to identity theft risks), some obtain both state and federal tax ID numbers for their businesses.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Alana Rudder

BLUEPRINT

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.

Bryce Colburn

BLUEPRINT

Bryce Colburn is a USA TODAY Blueprint small business editor with a history of helping startups and small firms nationwide grow their business. He has worked as a freelance writer, digital marketing professional and business-to-business (B2B) editor at U.S. News and World Report, gaining a strong understanding of the challenges businesses face. Bryce is enthusiastic about helping businesses make the best decisions for their company and specializes in reviewing business software and services. His expertise includes topics such as credit card processing companies, payroll software, company formation services and virtual private networks (VPNs).