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
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
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.