How to Obtain a Tax ID Number in Utah

You must apply for a Tax ID number, commonly known as an Employer Identification Number (EIN), if you are beginning a business or want to hire employees in Utah. The Internal Revenue Service (IRS) has given your company a special nine-digit identification number to use for tax purposes. How to obtain a Tax ID number in Utah is as follows:

1. Ascertain whether you require a Tax ID number: If you are beginning a business, hiring staff, or creating a bank account for your business, you will need a Tax ID number. If you are a solo proprietor or a partnership with employees, you could additionally need a Tax ID number.

3. Obtain your Tax ID number: Following the approval of your application, you will be given your Tax ID number. You will require this number for tax purposes, so be careful to store it safely. Does Selling Online Require a Seller’s Permit? The Utah State Tax Commission will need you to apply for a seller’s permit if you want to offer products or services online in Utah. You can gather sales tax on behalf of the state and send it to the proper authorities with the help of a seller’s permit. If you’re going to be selling products or services at festivals, events, or other transient sites, you might additionally need to get a seller’s permit.

Yes, a seller’s permit is a valid prerequisite for companies operating in Utah that offer goods or services. Penalties, fines, and legal action may come from failure to get a seller’s permit. What does a market facilitator do?

A company that facilitates transactions between buyers and sellers is known as a marketplace facilitator. This covers internet shops like Amazon, eBay, and Etsy. Marketplace administrators must gather and send sales tax on behalf of their vendors in Utah. Because the marketplace facilitator will take care of the sales tax, if you are selling products on one of these platforms, you might not need to get a seller’s permission.

Businesses can buy items without paying sales tax when they have a resale number, commonly referred to as a resale certificate or sales tax exemption certificate. If your company buys products to resell, you can save money on sales tax by telling your vendors your resale number. You must apply for a seller’s permission and submit the required paperwork to the Utah State Tax Commission in order to receive a resale number there.