![]() The official term used by the IRS and other government entities is “employer identification number” or “federal tax identification number.” The terms “corporate number” and “EIN” can be used interchangeably. Sole proprietorships and single-member LLCs may use Social Security numbers as their business’ tax ID number. These help the government track business taxation at the federal level. Taxpayer identification numbers for pending United States adoptionsįor businesses, EINs are the most relevant tax ID numbers.Individual taxpayer identification numbers.The term “taxpayer identification number” refers to five different types of numbers used to identify taxpayers: What is the difference between a tax ID number and a corporate number? In most states, though, a corporate number is the equivalent of an EIN. The company can then use this number to apply for an EIN. In California, however, corporations receive seven-digit corporation numbers from the California Secretary of State or Franchise Tax Board and LLCs receive a 12-digit corporate number. “A corporate tax ID is interchangeably used with employer identification number, which applies to entities other than corporations as well,” said Selva Ozelli, tax director at Gelfand, Rennert and Feldman. This number is equivalent to the federal (TIN) or an EIN. ![]() What is a corporate number?Ĭorporations and LLCs receive a corporate number upon approval of their articles of incorporation. When you first start a business, you apply for a taxpayer ID number through the IRS.Īre you launching a new company? To learn about what else you need to get started, check out our other guides for new businesses, including how to get a business license and how to open a business bank account. This number is assigned by the IRS and used by businesses to file tax returns, pay taxes and secure approval to conduct other business operations. Each person’s or business’ number is unique to them, which makes it easy for the government to track. The purpose is to assign a number to each taxpayer, whether that’s an individual or a business. What is a tax ID number?Ī TIN is an ID number the IRS uses to administer tax laws. Understanding the differences between the types of identification numbers makes filing taxes easier, so keep reading to learn the different kinds of ID numbers you might need to operate your business. A tax ID number is used to identify different kinds of taxpayers while a corporate number is used by limited liability companies (LLCs) or other corporations. Tax identification numbers (TINs) and corporate numbers are similar concepts with some important distinctions. ![]() ![]()
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