What is a sales tax number and a employer number?

Question

What is the difference between a sales tax number and a employer number? Why do I need them? What are they used for?

Answer 1

The sales tax number is issued by your State's comptrollers office and is used by the state to collect sales tax from your business. Your federal employer number is issued by the IRS and is used to collect income taxes and unemployment taxes. You need them if you are going to run a business.