Wyoming Business Tips for July 8

July 2, 2012

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 terri.lucero@wy.gov.

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 wsbdc@uwyo.edu or write 1000 E. University Ave., Dept. 3922, Laramie, WY, 82071-3922.

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