What is the difference between an EIN number& a reseller tax ID number?
An employer identification number (EIN) is an identification number issued by the federal government. Employers use it when dealing with the government. A reseller tax ID number has to do with sales tax and is issued by the state in which your business is based. If your state has no sales tax, you do not need a reseller number.FunctionThe function of these numbers is to make it possible to identify your business. If just the business’s name were used, confusion would be rampant. A Google search for “John’s Auto,” for example, yields 53,000 references. For that reason, every business is issued a unique number.Type: EINThe Internal Revenue Service issues EINs and uses it in all business-related contacts with you, including communication related to business taxes and Social Security withholding.Type: Reseller ID NumberIf you live in one of the 44 states that has a sales tax, or if you do business in the District of Columbia, you will need a reseller ID number. The department of your state
