The US has fifty states and even more territories. Each state is unique in many ways, but all are also bound by certain federal regulations. When applying for Federal Tax ID numbers, residents through all states go through a similar process. Here is more of what you need to know:
The Many Tax IDs: Individuals, companies and even estates may need a Tax ID. For instance, if someone dies, their assets are transferred to their estate and their heirs will need to file for an estate of deceased individual Tax ID number, in addition to paying taxes on their inheritance. A new business, or a business that is changing its fundamental tax structure will also need an Employer Identification Number, or EIN, which serves as a business Tax ID.
Applying for a Tax ID: Depending on the type of Tax ID required, you will need to fill out a specific form and submit that form to the Internal Revenue Service. For instance, new company owners will need to complete Form SS-4. The easiest and fastest way to apply for a Tax ID is to do so online. You can also apply by fax or mail, but you should be prepared for an extended wait time with these methods.
State Differences: While Federal Tax processes are the same per state, you may find a variation in state taxes. In some cases, entities that do not pay certain taxes on a federal level are obligated to do so for their state. For instance, S-corporations, which are exempt from certain federal tax obligations, will still pay a state income tax in California.
While ordering a Tax ID is pretty much the same between states, you may need to do a bit of additional research when it comes to state taxes to ensure that your company is following the rules this tax season.