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The Bank Said I need a "Tax ID" to open a bank account for my new business. What is it and Where Do I Get One?

Jun 22, 2012

Many times a bank will tell a new business they need a Tax ID. What the new business doesn’t know is there are different types of Tax ID‘s. Do they mean an Employer Identification Number (EIN #) or a Wyoming Sales Tax Number? What are the differences?


An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number and is used to identify a business entity. This is normally what the bank means when they say “Tax ID”.


Do You Need an EIN?

You will need an EIN if you answer "Yes" to any of the following questions.
For your convenience, clicking on the "Yes" option will take you directly to How to apply for an EIN

Do you have employees?
YES
NO
Do you operate your business as a corporation or a partnership?
YES
NO
Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
YES
NO
Do you withhold taxes on income, other than wages, paid to a non-resident alien?
YES
NO
Do you have a Keogh plan?
YES
NO
Are you involved with any of the following types of organizations?
• Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
• Estates
• Real estate mortgage investment conduits
• Non-profit organizations
• Farmers' cooperatives
• Plan administrators
 
The IRS website:http://www.irs.gov/businesses/small/article/0,,id=98350,00.html has all the information needed to determine if you will actually need this type of tax ID number.

Wyoming Sales/Use Tax License Number – This also can be referred to as a Tax ID #. This is normally not what the banker is referring to when he/she says you need a Tax ID . This ID# is needed for any person who meets the following definition of vendor and must license to collect and remit sales tax. Wyoming Statute (W.S.) 39-15-101(a)(xv) states:


"Vendor" means any person engaged in the business of selling at retail or wholesale tangible personal property, admissions, or services, which are subject to taxation under this article. "Vendor" includes a vehicle dealer as defined by W.S. 31-16-101(a)(xviii).
If there is any doubt who must have a Wyoming Sales Tax Identification Number you can call Education & Taxability Services with the Wyoming Department of Revenue:
Terri Lucero – Education/Taxability Manager
(307) 777-5293 (307) 777-5293
terri.lucero@wy.gov


The Education & Taxability section provides services to all taxpayers with written taxability determinations, seminar request, and educational information. Please direct any questions or concerns related to the above to dor_taxability@state.wy.us or by telephone at (307)777-2459 (307)777-2459


If you are still confused about Tax ID’s, please go to our website at www. WyomingEntrepreneur.biz and set up a free and confidential meeting with one of our professionals.



Tags: Tax ID, EIN
Category: Accounting

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