State tax registration
The federal EIN isn't the only registration your company may need.
States have their own registrations — and which ones apply depends on what your company does, not just where it was formed.
Federal vs. state.
Your EIN is federal — one number from the IRS that identifies your company nationwide. But states run their own tax systems, and each has its own registrations and accounts. A company formed in one state that operates in another can easily owe registration in both.
Which registrations you need is determined by facts: do you sell into a state, do you have employees there, do you have a physical presence there. The state of formation matters for some things; the state of operation matters for others. This is why “I formed an LLC — now what?” has no single answer — it depends on what the company actually does.
The registrations to know.
- 01
Sales tax registration
If your company sells to customers in a state where it has a connection, you may need to register to collect and remit sales tax. Whether that connection exists is the 'nexus' question — see our sales tax page.
- 02
Income tax withholding
If your company has employees in a state, it generally must register to withhold income tax from their pay and send it to the state. This follows your employees, not your own state of formation.
- 03
Unemployment tax
States fund unemployment benefits through employer accounts. If you employ people in a state, you typically register for an unemployment account there — again, tied to where your people work.
- 04
State income or franchise tax
Some states tax business income or charge a franchise tax for the privilege of operating there. Which applies, if any, depends on the state and what your company does there.
What you'll pay — and the nexus question.
State registration and annual requirements come with fees that vary by state and change over time. We don't publish them as fact — instead, we show you how to find your own: finding your state's annual fee.
The sales-tax piece hinges on "nexus" — whether your company has a connection to a state strong enough to create a tax obligation. That deserves its own page: sales tax and nexus, explained. Whether you have it is a facts question, and it is not something to guess at.
Registration handled, not left to you.
We handle the state tax registrations that apply to your company as part of your setup — so you're not left with a filing you didn't know you needed.
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