Sencha business guide

Democratizing Access to business credit. Sencha is here to help everyone understand what it takes to start from scratch and transition to running a strong small business.  We are the business credit hub.

Obtain your tax ids and licenses
Running a business involves taxes and paperwork. Here's what you need to know about federal tax IDs, state tax IDs, and licenses.
Sencha is here to help everyone understand what it takes to start from scratch and transition to running a strong small business. 
Here's what you need to know:
Federal Tax ID (Employer Identification Number or EIN)
Your EIN is like a Social Security number for your business. You use it to pay federal taxes, hire employees, open a bank account, and apply for licenses.- It's free to apply for an EIN, and you should do it right after registering your business.
You need an EIN if your business: 
Pays employees 
Operates as a corporation or partnership  
Files certain tax returns 
Withholds taxes on payments to non-resident aliens  
Uses a Keogh Plan 
Works with certain types of organizations
You can apply for an EIN online with the IRS assistance tool. Provide your information and your business details. Your nine-digit federal tax ID (EIN) becomes available immediately upon verification.
Changing or Replacing Your EIN
Sometimes you might need to change or replace your EIN due to changes in your business structure or other circumstances. Check with the IRS to determine whether you need to make any changes.
State Tax ID
Your need for a state tax ID depends on whether your business must pay state taxes. Some states also use state tax IDs to help protect sole proprietors from identity theft.
Tax obligations differ at the state and local levels, so you'll need to check your state's websites.
Research your state's laws regarding income and employment taxes to know if you need a state tax ID.
The process to get a state tax ID is similar to getting a federal tax ID, but it varies by state. Check with your state government for specific steps.
State Income and Employment Taxes:
States have varying income tax rates and rules. Some don't have income tax, and others tax specific income types. Research your state's requirements based on your business structure.

Employment insurance and workers’ compensation insurance also vary by state. Consider these costs when calculating startup expenses.
Remember to visit your state's official website to understand whether you need a state tax ID to pay state taxes.
Getting Licenses:
Certain businesses need licenses or permits to operate legally. These requirements vary by industry and location.

Check with your local city or county government to find out which licenses or permits you need.

Your business activities and location determine the licenses you require.
Make sure you have all your necessary tax IDs and licenses in place to operate your business legally and without issues.