Introduction to EIN and Tax ID Numbers
An EIN (employer identification number) is a nine-digit number the IRS assigns to businesses for tax filing and reporting purposes. EINs are essential for identifying a business for various financial and regulatory purposes.
EIN vs. State Tax ID Number
A State Tax ID Number serves the same purpose as an EIN but is specifically used for state tax payments. Both numbers are crucial for tax compliance and identification.
Importance of Having an EIN
You need an EIN if you have a business, estate, trust, employees, or file certain tax forms. The EIN is a key identifier issued by the IRS that is used for various financial and administrative activities related to your business.
When registering a business in Pennsylvania or California, you can use different identification numbers like the FEIN or SSN. An LLC typically requires an EIN when it has employees or is involved in specific tax filings.
To verify an EIN, contact the IRS directly as online lookup is not available. Additionally, ensure you have the required identification numbers ready for processing requests and certifications in various states.