A family-owned daily newspaper serving Riverton, Lander and Fremont County, Wyoming since 1949

Navigating the world of tax IDs

Dec 20, 2012 - By Margie Rowell

Question --"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

Answer -- 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 or a Wyoming Sales Tax Number? What are the differences?

An Employer Identification Number 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.


Editor's note:R00;Margie Rowell is the regional director of WSBDC, part of WyomingEntrepreneur.Biz, a collection of business assistance programs at the University of Wyoming. To ask a question, email at wsbdc@uwyo.edu or call at 1-800-348-5194.

Get your copy of The Ranger online, every day! If you are a current print subscriber and want to also access dailyranger.com online (there is nothing more to purchase) including being able to download The Mining and Energy Edition, click here. Looking to start a new online subscription to dailyranger.com (even if it is for just one day)? Access our secure SSL encrypted server and start your subscription now by clicking here.

County Weather

Photo Gallery

Twitter Feed (Follow Us!)

Contact Us  © 2015 Riverton Ranger, Inc.