When you are running a business or start a new entity, you are assigned various numbers. Some are assigned by state governmental agencies and some are assigned by federal government.
In this article we will be discussing Entity Number Vs. EIN. We will also discuss Is an entity number the same as a tax ID number?
Contents
What is An Entity Number (State Entity Number)?
State Entity Number is a number that is assigned to a corporation or LLC by the State in which it is registered.
This number is used to identify the business entity in state filings and transactions.
The State Entity Number can be found on the Articles of Incorporation or Certificate of Formation for a corporation, or on the Articles of Organization or Certificate of Organization for an LLC.
In some states, the State Entity Number is also referred to as the State File Number or State Identification Number. For example you can use California Secretary of State Business Search Link to find an Entity Number for a particular CA entity.
What is an EIN (Employer Identification Number)?
EIN is an abbreviation for Employer Identification Number. An EIN number is also known as a Tax ID.
It is a unique nine-digit number assigned by the IRS to business entities. This number is used to identify businesses for tax purposes. LLCs, corporations, and sole proprietorships all need an EIN number.
Most businesses will need to get an EIN number when they first start operating. You can apply for an EIN number online, by fax, or by mail. Once you have your EIN number, you will use it when filing taxes and when opening a business bank account.
In short, an EIN number is a very important part of running a business. Make sure you get one soon after you start your business!
Entity Number Vs. EIN (Employer Identification Number)
There are Several differences between State Entity Number Vs EIN number. We have shared 7 main differences between Entity Number Vs EIN number below. Lets read and learn:
- Entity Number is Issued by the Secretary of State while the EIN Number is Issued by Internal Revenue Service(IRS).
- You can find Entity Number on your Articles of Incorporation( Corporations) or Articles of Organization(LLC) while EIN number is issued by IRS and can be found on EIN Letter, IRS correspondence or your Federal Income Tax Returns.
- Sole Proprietorships do not have any Entity Number while they can have an EIN. Only Corp or LLCs get an Entity Number from the Secretary of State. Since Sole Proprietorships do not register with SOS, you do not have to get an Entity Number.
- Entity Number is used by the State Government to track your taxes and payments while EIN is used by the IRS to track Income Tax and Payroll Taxes.
- Entity Number is Public information and you can find this on secretary of state website, while EIN number is not public and you need to request the EIN from the vendor by having them fill out a W9 Form.
- You can get Entity Number by filing for Articles with the Secretary of State while you can apply for EIN by filling out SS 4 Form with the IRS(Online, By Fax or over the Phone)
- Entity ID cannot be used to withhold and pay income taxes, while EIN number can be used to withhold and pay employee and employer payroll taxes to the IRS.
Is an entity number the same as a tax ID number?
No Entity Number is State Issued ID by Secretary of State and Tax ID is typically the EIN number issued by the IRS.
Does an Entity Need an EIN?
If the Entity is a Corporation or an LLC then the Entity do need an EIN in order to prepare and file income taxes.
Even if you do not have any employees, you will need the EIN Number in order to conduct business, open bank account and prepare and file Income Taxes.
If you are a Sole Proprietor, then you do not need and EIN to file your taxes. If you do have employees, then you do need and EIN to file payroll taxes and submit tax payments.
Is EIN Number Same as Tax ID?
Yes, Many people use Tax ID instead of EIN.
Since EIN is used to file income and payroll taxes, many people refer EIN as Tax ID Number.
Is my LLC number the Same as My EIN number?
Where Can I find My Entity ID number?
You can find your Entity ID stamped on the Articles of Incorporation(For Corporations) and on Articles of Organization for LLCs.
You can also look up Entity ID on Secretary of State website and entering Corporation/LLC name in the search area.
Final Thoughts
Now that you learned the Key Differences between State Entity Number vs EIN, continue reading more Tax Blogs by reading our Tax Section.
