In what case would a business be required to register for a state tax ID? I am not hirng any employees nor employing any employees. I am the...

Question

In what case would a business be required to register for a state tax ID?

I am not hirng any employees nor employing any employees. I am the only one of the business that i am runnng out my home.

This is for profit business

Answer

If you are a sole proprietorship and are buying and selling goods, then you need to obtain a FEIN for purposes of paying sales and use taxes.

If you are simply providing consulting services and are not subject to use or sale taxes then you do not need to obtain a state Tax ID.