Small Business

sales Taxes and Tax ID

Hello, I plan to open a food truck. I live in SE Oklahoma and plan to run the Truck in NE Texas and not in Oklahoma. 1/ do I need a Tax ID or is my SS number enough for sales tax? 2/If I need a tax ID do I need to take it in Oklahoma or in Texas? I suppose I need to have a food license from Texas. 3/ Do I need an EIN number or is my SS number enough? I do not plan to hire any employees (at the beginning)

Answer:

My Answer:

Hello, from San Antonio, Texas. First, I want to say congratulations on the business venture.

To answer your first question, if your question is strictly about applying for the Texas sales tax permit, you do not need a Tax ID (employer identification number or EIN). You can apply for a Texas sales tax permit, as a sole proprietor. When you apply for the Texas sales tax permit, Texas will assign you an 11 digit Texas Taxpayer Number.

To answer your second question, if you are going to operating the food truck in Texas (so the income will be generated in Texas), you definitely need the sales tax permit in Texas. You won’t be doing any sales in Oklahoma, so you probably don’t need an Oklahoma sales tax permit.

To answer your third question, you do not need an EIN (what I assume you’re calling a Tax ID) yet. However, the moment you hire any employees, you must have an EIN. Also, you may want to consider getting an EIN, even if you don’t need it. Why? Because if you don’t have an EIN, you’re going to be giving out your SSN to everyone. That definitely increases the risk of identity theft for you.

If you found this helpful, I would really appreciate if you could leave a Google review for me (Adam Dickreiter) by following this link https://g.page/adam-dickreiter-cpa-pllc/review?gm or doing a Google search for my name.

If we receive a positive Google review, my company will donate $10.00 to San Antonio Youth Literacy.

If you need a CPA or a bookkeeper, I am a CPA, and I also have a separate bookkeeping company (whose website address is www.bookkeepingsolutionssa.com). We have quite a bit of knowledge about sales tax, as we file sales tax reports for many clients and we are even engaged from time-to-time by companies (who are not even regular clients) to represent them with sales tax audits, as Texas loves to go after businesses for sales tax.

Adam Dickreiter, CPA

Answer Provided by: Adam Dickreiter Adam Dickreiter

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