Guide
State Tax ID Number Guide
A state tax ID is separate from your federal EIN. States issue their own tax registration numbers for state income tax, sales tax, and payroll. Get your federal EIN first - ein.so files Form SS-4 for $49.
A state tax ID is separate from your federal EIN. States issue their own tax numbers for sales tax, payroll, and state income tax, while the IRS issues the federal EIN through Form SS-4. Your federal EIN does not replace a state registration. Most non-resident LLC owners need only the federal EIN unless they have US employees, retail sales, or a US location. ein.so files Form SS-4 and delivers your federal EIN by email. Standard costs $49 (4-7 business days). Express costs $97 (2-3 business days).
US businesses operate under two tax layers. The federal layer runs through the IRS, which issues one EIN per entity in the XX-XXXXXXX format. The state layer runs through 50 separate revenue departments, each with its own rules, forms, and numbers. A state tax ID identifies your business to one state for state-level taxes. Non-residents forming a US LLC almost always need the federal EIN first. Whether you also need a state tax ID depends on where you have employees, inventory, or sales. This guide explains the difference, when each applies, and how to get the federal EIN that comes before any state registration.
| Factor | Federal EIN | State Tax ID |
|---|---|---|
| Issued by | IRS | State revenue department |
| Number format | XX-XXXXXXX | Varies by state |
| Covers | Federal taxes, banking, payroll | State sales tax, state payroll, state income tax |
| Application | Form SS-4 | State online portal |
| Cost from agency | $0 | $0 in most states |
| Needed by non-residents | Almost always | Only with US nexus |
| Prerequisite | None | Usually the federal EIN |
Difference
What Is the Difference Between a State Tax ID and a Federal EIN?
A state tax ID and a federal EIN are different numbers from different agencies. The IRS issues the federal EIN for federal taxes, banking, and payroll. A state revenue department issues a state tax ID for state sales tax, state payroll, and state income tax. The EIN comes first.
The federal EIN is your business's single national identifier. Every US LLC, corporation, and partnership uses one EIN across all 50 states. The IRS issues it for free using Form SS-4. A state tax ID is local. It links your business to one state's tax system. A company operating in three states may hold three separate state tax IDs alongside its one federal EIN.
| Question | Federal EIN | State Tax ID |
|---|---|---|
| How many do I get? | One per business | One per state with nexus |
| Who issues it? | IRS | State revenue department |
| What does it cost? | $0 from the IRS | $0 in most states |
| Used for sales tax? | No | Yes |
| Used for US payroll? | Federal withholding | State withholding |
| Required for a US bank account? | Yes | No |
Your federal EIN unlocks US banking, payment processors, and IRS filings. See EIN for a bank account for how the federal number drives account opening. A state tax ID does none of that. It exists only for state tax collection and reporting.
When You Need It
When Do Non-Residents Need a State Tax ID Versus an EIN?
Non-residents need the federal EIN for almost every US LLC, but a state tax ID applies only when they have US nexus. Nexus means US employees, US inventory, a US physical location, or in-state sales above a threshold. A non-resident with a Wyoming LLC and no US operations usually needs only the federal EIN.
Most non-resident founders run remote, online businesses. They sell software, digital products, or services to global customers from a Wyoming, Delaware, or New Mexico LLC. These businesses rarely create state tax nexus, so they register for the federal EIN and stop there.
EIN Only - Remote Service Business
EIN Plus Sales Tax ID - E-commerce
EIN Plus Payroll ID - US Employees
EIN Plus Franchise Account - Some States
ein.so files the federal EIN and does not provide tax advice. State nexus rules and thresholds change by state and year. Confirm your nexus and state registration duties with a US CPA before you register. Start with the federal EIN through EIN for non-residents.
By State
What Are the State Tax ID Names by State?
Each state names and formats its tax ID differently. California issues an Employer Account Number for payroll. Texas issues a Taxpayer Number for franchise tax. New York issues an Employer Registration number. The federal EIN format stays the same nationwide at XX-XXXXXXX, while each state runs its own system.
| State | State Tax ID Name | Common Use |
|---|---|---|
| California | CA Employer Account Number | State payroll |
| New York | NY Employer Registration Number | State payroll |
| Texas | TX Taxpayer Number | Franchise tax |
| Florida | FL Reemployment Tax Account | State payroll |
| Wyoming | WY Employer ID | State payroll |
| Delaware | DE Business License / Withholding | Franchise, payroll |
The names, formats, and registration rules above change by state and year. Always confirm the current process on your state revenue department's official site. The constant is the federal EIN, which every entity needs first. See EIN cost for how the federal number stays free from the IRS.
Get the EIN First
How Do Non-Residents Get the Federal EIN Before a State Tax ID?
Non-residents get the federal EIN by submitting IRS Form SS-4 by fax to 855-215-1627, using a passport number on Line 7b instead of an SSN. The IRS online EIN tool requires an SSN, so non-residents use the fax method. Most error-free filings return an EIN within 4-7 business days.
The federal EIN is the prerequisite for state registration. State portals usually ask for your federal EIN on the application. Get the EIN first, then register with the state if you have nexus.
Form Your US LLC
Gather Your Documents
Complete Form SS-4
Submit by Fax and Receive Your EIN
SS-4 Field Guide for Non-Residents
| SS-4 Field | Non-Resident Entry |
|---|---|
| Line 1 (Legal name) | Your US LLC name |
| Line 4 (Mailing address) | Your foreign address |
| Line 7a (Responsible party) | Your full name as on your passport |
| Line 7b (SSN/ITIN/EIN) | Your passport number |
| Line 10 (Reason) | Started new business |
| Line 16 (Principal activity) | E.g., "software," "e-commerce," "consulting" |
See the full SS-4 form guide, the complete EIN application process, and how to get an EIN without an SSN. For timing, review EIN processing time.
Federal vs DIY
How Much Does the Federal EIN Cost Compared to a State Tax ID?
The IRS charges $0 for a federal EIN, and most states charge $0 for a state tax ID. The cost difference for non-residents is in the filing work. ein.so files Form SS-4 for $49 (Standard) or $97 (Express), removing the international fax, US business-hours timing, and rejection risk.
A non-resident who files alone must operate a fax line that reaches the IRS at 855-215-1627, format a foreign address to IRS standards, and complete every SS-4 line without error. A single mistake causes a silent rejection and restarts the clock.
| Path | Agency Fee | Service Fee | Delivery |
|---|---|---|---|
| IRS DIY (fax) | $0 | $0 | 4-7 business days if error-free |
| ein.so Standard | $0 | $49 | 4-7 business days |
| ein.so Express | $0 | $97 | 2-3 business days |
| State tax ID | $0 in most states | Varies | Varies by state |
The federal EIN never expires and works in all 50 states. See EIN cost for the full breakdown. ein.so also offers an ITIN service at $197 (Standard) or $297 (Express) for individuals who need a personal taxpayer number, which is separate from both the EIN and any state tax ID.
Tax Compliance
What Federal Filings Apply to a Foreign-Owned LLC With a State Tax ID?
A foreign-owned single-member US LLC must file Form 5472 with a pro-forma Form 1120 each year, regardless of any state tax ID. The penalty for not filing Form 5472 is $25,000. State tax IDs trigger separate state filings such as sales tax returns or payroll reports.
Federal and state obligations stack independently. The federal EIN drives the IRS filings below. Each state tax ID drives that state's own returns.
Federal: Form 5472 + 1120
Federal: BOI Report to FinCEN
State: Sales Tax Returns
State: Payroll and Franchise
ein.so files the EIN application and does not provide tax advice. Foreign-held LLC tax, state nexus, and treaty questions are fact-specific. Confirm your federal and state filing duties with a US CPA familiar with non-resident matters. Your federal EIN is the starting point. See EIN without SSN and EIN for non-residents.
Next Steps
What Are the Next Steps After Getting Your Federal EIN?
- Apply for your federal EIN — ein.so files Form SS-4 and delivers it by email in 4-7 business days
- Open a US bank account — Mercury, Relay, and Wise accept non-resident LLC owners
- Register a state tax ID if you have nexus — confirm US employees, inventory, or sales thresholds with a US CPA
- File your BOI report — required for most LLCs, free at fincen.gov/boi
- File Form 5472 — annually for foreign-owned LLCs ($25,000 penalty for non-filing)
Related guides: How to get an EIN | EIN without SSN | EIN for non-residents | SS-4 form guide | EIN cost | EIN processing time. Browse EIN by state for state-specific notes.
Frequently Asked Questions
Is a state tax ID the same as an EIN?
No. An EIN is a federal number issued by the IRS for free using Form SS-4. A state tax ID is issued by your state revenue department for state-level taxes like sales tax and payroll. They are different numbers from different agencies. Most businesses with state tax obligations need both, and the federal EIN comes first.
Do non-residents need a state tax ID?
Most non-resident-owned US LLCs do not need a state tax ID unless they have a US physical presence, US employees, or in-state sales tax nexus. A non-resident with a Wyoming or Delaware LLC and no US operations usually needs only the federal EIN. Confirm your state nexus with a US CPA before registering.
Do I need both a state tax ID and a federal EIN?
You need both if you have state tax obligations such as US employees, retail sales, or a physical location. The federal EIN does not cover state income tax, state sales tax, or state payroll registration. Many non-resident e-commerce sellers need only the federal EIN because they have no in-state nexus. Confirm with a CPA.
How do I get a state tax ID?
Register with your state's revenue or tax department through its online portal. Each state runs its own application and uses its own form. You usually supply your federal EIN, your business name, your formation state, and your business activity. Get your federal EIN from ein.so first, because most state applications require it.
Is a state tax ID free?
Most states issue a state tax ID for free when you register for sales tax or payroll. Some states charge a small registration or license fee. Fees and rules change by state and year. The federal EIN is always free from the IRS, and ein.so charges $49 to file Form SS-4 for non-residents.
Which states have no state income tax?
Nine states have no broad state income tax: Wyoming, Nevada, Texas, Florida, South Dakota, Washington, Alaska, New Hampshire, and Tennessee. These states may still require an employer ID for payroll or a sales tax permit. A no-income-tax state does not remove the need for a federal EIN, which every US business entity requires.
Does my federal EIN work as a state tax ID?
No. Your federal EIN identifies your business to the IRS only. States maintain separate registration systems and assign their own numbers. You often enter your federal EIN on the state application, but the state issues a new, distinct number. Get the federal EIN first through Form SS-4, then register at the state level if required.
What does a state tax ID get used for?
A state tax ID lets you collect and remit state sales tax, register for state payroll withholding, and file state income or franchise tax. Retailers use it for sales tax permits. Employers use it for unemployment and withholding accounts. A non-resident with no US sales, employees, or location usually needs only the federal EIN.
Can ein.so get my state tax ID?
ein.so files IRS Form SS-4 and delivers your federal EIN by email for $49 (Standard) or $97 (Express). The federal EIN is the prerequisite for most state registrations. State tax IDs are issued by each state through its own portal. Get your federal EIN from ein.so first, then register with your state if you have nexus.
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