What is a Tax ID number for a business?
A business tax
identification number also called an employer identification number (EIN) or a
federal tax identification number, is a unique nine-digit number representing
your corporate with the IRS. To file taxes, open a business bank account,
receive a business license, or apply for a business loan, owners of certain
types of business entities require a business tax ID number.
Why Do You Need To Know Your Company Tax
Identification Number?
The IRS demands
that certain types of companies register for an EIN. The examples include single-member Company owners and sole
proprietors, who can use a social security number instead of an EIN. But even
small businesses who don’t need to have an EIN still want to get one, so they
can differentiate their company from their financial affairs.
If the IRS needs
you to acquire an EIN, even if you want to obtain one, here are some cases
where your company tax ID number would have to be provided:
- If filing corporate tax
returns or paying corporation tax - If registering for a
business loan - If opening a bank account
for business - If registering for a
business credit card - If issuing private
contractors with Form 1099s
If all of these
transactions do not happen daily, you’ll need to have your EIN at least a
couple of times a year as you consider all of them together. So, that’s a
number worth keeping to memory and securely save. Surely, you can recover your
company tax ID before performing any of the above transactions.
How To Find Another Business’s EIN
Small businesses
typically need to find a tax ID number for their own business. Still,
sometimes, companies need to look up the EIN of another company. For instance,
you might use an EIN to check details about a new supplier or customer. You may
do need the EINs of other businesses in sectors such as insurance during the
ordinary course of the company.
Choose one of the
following ways to search a Federal Tax ID number for another business:
1.
Ask the Company
In general, someone
in the payroll or finance departments will know the tax ID of the organization.
2.Search
SEC Filings
Source: SEC.gov
Whether the
business is traded publicly, look at the website of the Securities and Exchange
Commission, and type the name of the company. The SEC filings will contain the
business tax Identification number (listed as “IRS No.”).
3.
Get the Credit Report of Company’s Business
Credit companies,
such as Experian and Equifax, and other websites such as Nav require you to buy
your business credit report or display it for a fee from another business. The
report will show the EIN for the company.
4.
Use a Paid EIN Database
Another choice is
to look for a commercial EIN portal that would charge a fee for business EINs
access. Many databases also link EINs to other statistics, such as the size of
businesses and industry. It will help you come up with new ideas.
5.
For Nonprofits, You Can Use Melissa Database
Source: Melissa.com
The Melissa
Database offers a free search for nonprofit groups via federal tax
Identification. When you have a genuine need to search the EIN for other
companies, then you can search the number using one of these tools. Only be
careful to protect your own EIN. Share the name with such a small group of
individuals — lenders, prospective vendors, bankers, etc. Just as you should
protect your social security number, you would defend the EIN of your company.