An EIN (Employer Identification Number) plays a key role when applying for sales tax permits and reseller (resale) permits in the United States, but it’s important to understand how they work together—and how they differ.
What Is the Connection?
An EIN is a federal tax ID issued by the IRS, while sales tax and reseller permits are issued by state tax agencies. Most states require an EIN when you register for these permits, especially if your business is an LLC, corporation, partnership, or has employees.
EIN and Sales Tax Permits
A sales tax permit (also called a seller’s permit or sales tax license) allows a business to collect and remit sales tax on taxable goods or services.
You typically need:
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An EIN (or SSN for sole proprietors)
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Legal business name and address
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Business structure (LLC, corporation, etc.)
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Start date and estimated sales
States often use your EIN to:
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Track sales tax filings
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Link payroll and income tax obligations
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Verify business legitimacy
If your business sells taxable products or services, an EIN is often required—even if you don’t have employees.
EIN and Reseller (Resale) Permits
A reseller permit allows a business to buy inventory tax-free when items are intended for resale.
An EIN is commonly required because it:
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Identifies your business for wholesale transactions
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Appears on resale certificates given to suppliers
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Helps states prevent misuse of tax-exempt purchases
Without an EIN, many wholesalers will not accept a resale certificate.
Do All Businesses Need an EIN?
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Sole proprietors may sometimes use an SSN instead, depending on the state
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LLCs, corporations, partnerships, and online businesses almost always need an EIN
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Out-of-state sellers registering for sales tax due to nexus typically need an EIN
Key Takeaway
An EIN does not replace a sales tax or reseller permit—but it is often a required foundation for obtaining them. If your business sells taxable goods or purchases inventory for resale, securing an EIN early makes the registration process smoother and more compliant.
You can apply for EIN at https://www.einregister.online/ or call to (502) 547-2551