Wyoming Business Tips for July 8-July 14
A weekly look at Wyoming business questions from the Wyoming Small Business Development Center (WSBDC), part of WyomingEntrepreneur.Biz, a collection of business assistance programs at the University of Wyoming.
By Margie Rowell, WSBDC regional director
“My banker said I need a ‘tax ID’ to open a bank account for my new business. What is that, and where do I get one? Sabrina, Jackson
Many times bankers will tell a new business owners that they need tax IDs, but there are different types of tax IDs.
Do they mean an Employer Identification Number (EIN) or a Wyoming Sales Tax Number? What are the differences?
An Employer Identification Number (EIN) also is known as a Federal Tax Identification Number and is used to identify a business entity. This is normally what the bankers mean when they say “tax ID.”
If you answer “yes" to any of the following questions, you will need an EIN: Do you have employees? Do you operate your business as a corporation or a partnership? Do you file any of these tax returns: employment, excise, or alcohol, tobacco and firearms? Do you withhold taxes on income, other than wages, paid to a nonresident alien? Do you have a Keogh plan?
Wyoming Sales/Use Tax License Number also can be referred to as a Tax ID number. This normally is not what the banker is referring to when he says you need a tax ID. This ID number is needed for any person who meets the definition of vendor and must license to collect and remit sales tax.
For more information about a Wyoming Sales Tax Identification Number, contact Terri Lucero, Wyoming Department of Revenue, Education and Taxability Services manager, at (307) 777-5293, or email email@example.com.
Information also is available on the WyomingEntrepreneur.biz website at www.WyomingEntrepreneur.biz. Free and confidential meeting with an adviser is available.
A blog version of this article and an opportunity to post comments is available at http://www.wyomingentrepreneur.typepad.com/blog/.
The WSBDC is a partnership of the U.S. Small Business Administration, the Wyoming Business Council and the University of Wyoming. To ask a question, call 1-800-348-5194, email firstname.lastname@example.org or write 1000 E. University Ave., Dept. 3922, Laramie, WY, 82071-3922.