Q: I am trying to obtain a Nebraska state tax ID, and was wondering if you guys could point me in the right direction?

Thanks to our customer in Nebraska for this great question! Getting a Nebraska state tax ID is imperative for almost any business looking to do business in the Cornhusker State. Your state tax ID will do more than identify your business with the state of Nebraska, it will also allow you to collect and pay the state sales and withholding taxes (if you have employees), and more. We’ll show you why you need a Nebraska state tax ID number, and how to get one.

What is a Nebraska State Tax ID Number? 

A Nebraska state tax ID number is like a federal tax ID number (EIN) but at the state level. Like an EIN, your state tax ID is a unique number that will allow Nebraska to track sales taxes, license applications, and other activities of your business. When you register your business with the Nebraska Department of Revenue, in most cases you’ll be required to obtain a state tax ID number. It will be important to include your Nebraska tax identification number when filing state returns, remitting sales taxes, and on any other information or documentation that you submit to the Department of Revenue.

How is a state tax ID number different from an EIN? 

Your EIN allow the IRS to track your business in order for it, or in the case of an LLC, it’s members, to pay federal income taxes. Your state tax ID number helps  Nebraska’s Department of Revenue identify track your business and its activity. The big difference is that your state tax ID also allows your business to collect and remit sales tax to local and state authorities whereas the EIN sets your business up to pay federal taxes. In order to open a business bank account, most banks will only require an EIN, but some may require a state tax ID number as well.

Do I need a Nebraska State Tax ID Number for my business? 

In most cases, yes. If your business will have employees, plans to engage in sales of retail items or services, or rents or leases tangible property (buildings, equipment, vehicles) or engages in any other venture that is subject to sales tax, you’ll need a Nebraska tax ID.

How do I Get a Nebraska State Tax ID Number? 

The easiest and fastest way to apply for a Nebraska tax ID is to register online with Nebraska’s Department of Revenue. This application will also set your business up for state tax withholding if you hire employees. Once accepted, your business will be issued a Nebraska Sales Tax Permit which must be displayed at each retail location. If online filing isn’t for you, you can print out and complete the Nebraska Tax Application (Form 20). If not filing online you can submit the application two ways:

Mail:
Nebraska Department of Revenue
PO Box 98903
Lincoln, NE 68509-8903

Fax:
402-471-5927

What do I need to complete the Nebraska Tax Application?

You’ll need to have the following information handy when filling out Form 20:

• Personal information for each owner, officer, partner or member (including social security numbers)
• Physical address, mailing address, an email contact for your business
• Business entity type (LLC, PLLC, Corporation, etc…)
• The EIN of the business
• Fiscal year (most choose January 1st to December 31st)
• A signed Power of Attorney, Form 33, if the taxpayer (business owners) are not filling out application