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What is Document Control Numbering?

Every document needs to be numbered for identification purposes. It’s difficult to keep track of numbers when multiple people or departments are generating documents. That’s why organizations need to implement a reliable document control numbering system as part of their DM strategy .

Document control numbering is a system that is used to identify and organize documents. It was developed in order to provide an effective way of managing, tracking, and retrieving any document or record in an organization.

Document control numbering system assigns a sequential number to each document and provides the date, title, author, and department. It is often used in conjunction with other systems like the Document Status Code (DSC) or the Document Status Indicator (DSI).

Keeping track of revisions, versions, and changes in projects is a time-consuming process that eats away at productivity. Organizations need to make sure that they are following the most important document control best practices to improve their implementation.

What is document control number?

Document control number (DCN) is a unique identifier for a document. It is an organization-wide system to identify documents. It is used to keep track of their documents and also by different departments which are responsible for various types of documents. This numbering system can be applied to all types of documents like contracts, invoices, orders, and more.

If you ever asked yourself how to find the needed document without much of a Hussle, then the most basic way is to implement DCN.

It can be any combination of numbers and letters that identifies the document. It is commonly used in digitized documents to uniquely identify the document and its author with a unique identification number.

There are many different types of document control numbering, and they all have their own purpose.

It is considered an essential part of any document control implementation within organizations that deal with a lot of documents.

Types of Document Control Numbering

There are two types: sequential numbering and progressive numbering.

1- Sequential numbering

It is a system of assigning consecutive numbers to documents. All documents in a particular order are assigned consecutive numbers, and all numbers in a sequence are sequential within that sequence. This system is most commonly used in paper-based systems because it’s easy to automate numbering by hand.

2- Progressive numbering

Progressive numbering, on the other hand, assigns sequential numbers to documents using a sequence of letters or numbers. All documents in a particular order are assigned sequential numbers, and the sequence starts at letter A for the first document.

This type is mostly used in organization with huge number of documents to manage especially in construction.

Most of modern document control software or ECM systems allow to assign a flexible numbering based on organization’s preference and document types.

What is document numbering procedure?

A document numbering procedure prescribes the numbering procedure of documents. It details the naming conventions of documents based on types, department, and other needed information.

Naming conventions are used to identify and distinguish the documents from each other. The naming convention may vary depending on the organization and on the complexity of their document management plan , but it usually includes a prefix, number or letter, and suffix.

The prefix is usually assigned for identification purposes. The number or letter identifies the sequential order of documents within that particular document series or category. And finally, suffixes are added to differentiate between different types of documents such as drafts and final copies etc.

INC-HR-CV-00012

This document numbering procedure should be shared by all departments managers to be followed and applied by their employees.

Benefits of document control numbering

Document control numbering is an essential part of any organization, it helps identify and trace documents throughout the entire organization. This process helps organizations in maintaining the integrity of their documents, identifying document versions and providing a clear audit trail.

I strongly recommend reading this in-depth article discussing the difference between document control and document management .

Here are the top benefits of implementing DCN:

1. It is a way to keep track of documents in a systematic manner

2. It is an efficient way to find the document you are looking for

3. It helps in the retrieval of documents that have been misplaced

4. It speeds up document retrieval time

5. It prevents duplicate creation of documents by providing a numbering system for them

6. It reduces errors and increases productivity

How do I create a document control number?

To create a document control number that suites your organization, you need to follow the following steps

1- Think outside the Box

The first step to create a solid document control numbering within your organization is to get a holistic overview of what the types of information and documents you consume on a daily basis.

In addition, you have to try to foresee any new information types that will flow within your organization walls.

2- Meet all key stakeholders

You can learn more about the challenges employees are having managing the lifecycle of documents, including the time it takes to find documents, by identifying the c hallenges in your document management implementation.

In order to learn how each department manages the flow of documents and the most crucial categories they are dealing with, be sure to speak with all of the key individuals in each department.

In addition, you should identify which departments need to communicate with external entities and what is their current numbering system if any.

3- Understand organization structure

Nowadays more and more organizations are working in different geographical location and some of them (construction companies) usually have a complex structure.

Complex organization structure requires more complex document numbering and you should make sure that the system you use is flexible enough.

4- Create a document numbering procedure

The first step is to create a unique identifier for the document. This can be done by adding an acronym or code to the beginning of the number, such as “INC-HR-CV-00012” for example.

The second step is to insert this identifier on a form near the top, such as “INC-HR-CV-00012” in case you are still working with paper documents or as a reference ID in your DMS.

Thirdly, it is important that you keep records of all your document control numbers and their corresponding dates in order to avoid confusion later on.

As a summary, you should

1. Create a unique ID for the document

2. Create an automated system in order to assign numbers to documents as they are created

3. Assign each document with its own unique ID number

5- Send for approval and implementation

When the DCN document is finalized, you should send it to all concerned parties for feedback and implementation.

6- TRAIN employees

Whenever you want to apply changes, you should make sure that employees are well trained and understand how it works in order to minimize errors and confusion.

7- Update when necessary

This document control numbering should always be well maintained and updated in order to cater for new document classification and any issues that were not addressed in any previous step.

What is Document Classification? Why You Need it?

What is Data Lifecycle Management (DLM)?

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Understanding Employee Identification Numbers: A Comprehensive Guide

Employee Identification Numbers (EINs) play a crucial role in identifying and tracking employees within an organization. In this guide, we’ll delve into the importance of EINs and explore their various applications.

What is an Employee Identification Number? An Employee Identification Number, also known as an Employee ID or Employee Number, is a unique numerical identifier assigned to each employee within a company. It serves as a primary identifier for tracking an employee’s records, payroll, benefits, and tax information.

The Purpose of Employee Identification Numbers EINs are essential for maintaining accurate employee records and streamlining various HR processes. They facilitate efficient payroll management, help track attendance and leave records, and provide a reference point for employee benefits and tax deductions.

Assigning Employee Identification Numbers Employee Identification Numbers are typically assigned by the HR department during the onboarding process. Each employee is allocated a unique number, often in sequential order, for easy reference and organization.

Protecting Employee Identification Numbers Given the sensitive nature of employee data, organizations must prioritize the protection of EINs. Robust data security measures, including restricted access and encryption protocols, should be implemented to safeguard against unauthorized access and potential data breaches.

EINs and Payroll Management EINs are integral to payroll processing. Employers use these numbers to ensure accurate salary calculations, tax deductions, and contributions to retirement plans. EINs also enable efficient tracking of employee earnings and tax obligations.

EINs and Employee Benefits Employee Identification Numbers streamline the administration of employee benefits. From health insurance to retirement plans, EINs facilitate the accurate enrollment, tracking, and management of employee benefits, ensuring that employees receive the appropriate coverage and incentives.

EINs and Tax Compliance EINs are crucial for tax compliance purposes. Employers use these numbers to report wages, salaries, and other compensation to the tax authorities. EINs also enable employees to file their tax returns accurately and claim deductions or credits.

Updating Employee Identification Numbers When an employee’s information changes, such as a name change due to marriage or legal reasons, the HR department should update the corresponding EIN. This ensures consistency and accuracy in maintaining employee records.

Integrating EINs with HR Software Systems Modern HR software systems often have built-in features for managing and tracking employee identification numbers. These systems streamline administrative tasks and enhance data accuracy, enabling HR personnel to focus on strategic initiatives.

EINs and Organizational Efficiency By providing a standardized method of identification, EINs contribute to overall organizational efficiency. They simplify record-keeping, payroll management, and compliance processes, allowing HR departments to allocate more time and resources to strategic HR initiatives and employee development.

In conclusion, Employee Identification Numbers are vital tools for efficient HR management. They enable accurate record-keeping, streamlined payroll processing, and compliance with tax and benefit regulations. By implementing robust EIN systems, organizations can enhance their overall operational efficiency and provide a seamless experience for employees and HR personnel alike.

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• Employer Identification Number (EIN)
• Understanding EINs
• Requirements for EIN
• How to Get an EIN
• Closing Your EIN
• EIN vs. TIN

The Bottom Line

• Business Taxes

Employer Identification Number (EIN): Who Needs It and How to Get It

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Investopedia / Michela Buttignol

What Is an Employer Identification Number (EIN)?

The term employer identification number (EIN) refers to a unique identifier that is assigned to a business entity so that it can easily be identified by the Internal Revenue Service (IRS). EINs are commonly used by employers for the purpose of reporting taxes . The number is made up of nine digits and is formatted as XX-XXXXXXX. Businesses can apply for EINs directly through the IRS, which usually issues them immediately.

Key Takeaways

• An employer identification number is a unique nine-digit number that is assigned to a business entity.
• EINs allow the IRS to easily identify businesses for tax reporting purposes.
• All businesses that meet certain criteria must have an EIN before they can begin operating.
• Applying for one is free and applications are available on the IRS website.
• Along with tax reporting, EINs allow businesses to open bank accounts and apply for credit.

Understanding the Employer Identification Number (EIN)

Employer identification numbers are issued to identify business entities in the United States the same way Social Security Numbers (SSNs) are used to identify individual residents of the country. The EIN is also known as a Federal Tax Identification Number.

As noted above, EINs are unique nine-digit numbers that are formatted as XX-XXXXXXX. EINs are issued by the IRS and include information about the state in which the entity is registered. The agency uses EINs to identify taxpayers who are required to file various business tax returns .

You need an EIN if you have employees, operate as a corporation or partnership, file certain tax returns, withhold taxes on income , other than wages, paid to a non-resident alien, have a Keogh plan, or are involved with certain types of organizations including trusts and estates. Business entities must apply for an EIN by phone, online, fax, or mail before they can begin operations. Many types of businesses and other entities can be issued EINs, including:

• Limited liability companies (LLCs)
• Sole proprietorships
• Non-profit organizations (NPOs)
• Government agencies
• Corporations
• Personal service corporations
• S corporations
• Partnerships
• Churches and church-controlled organizations
• Plan administrators
• Military entities
• Government entities
• Farmers' cooperatives
• Indian tribal governments and enterprises

The IRS is not biased toward the size of the company. This means even those with only one employee are just as eligible for an EIN as multinational corporations .

The EIN is not considered to be sensitive information the same way a Social Security number is and is freely distributed by businesses online and in print publications.

Do I Need an Employee Identification Number?

The IRS requires certain companies to obtain an EIN as part of reporting requirements. A business or other entity needs an EIN if it:

• Has any employees
• Operates as a corporation or a partnership
• Files employment, excise, or alcohol, tobacco, and firearms tax returns
• Withhold taxes on income, other than wages, paid to non-resident aliens
• Have a Keogh plan
• Are involved with a number of types of organizations including but not limited to trusts, estates, and non-profits

How to Get an Employer Identification Number

Applying for an EIN costs nothing. Applications can be made by phone (for those who aren't in the United States but will do business in the country), fax, mail, or online. The process is fairly easy and uncomplicated.

Applicants must fill out Form SS-4: Application for Employer Identification Number, which is available on the IRS website . The IRS requires the following information to be included on the application in order to issue an EIN, such as the name of the company's principal officer, grantor, general partner, trustor , owner, or any other title, along with their personal taxpayer identification number.

Some of the information that must be included on the form includes:

• The type of entity
• The reasons for applying (new business, change of organization, IRS withholding requirement compliance)
• The start or acquisition date
• The principal industry of business

A business must be located in the U.S. or U.S. territories to apply for an EIN online. Once the online information is validated, an EIN is assigned immediately.

The person responsible for the business, regardless of their title within the company, must be an individual and not an entity, unless it's a government entity.

Benefits of an Employer Identification Number

EINs are unique to the businesses to which they are assigned. The numbers never expire, and the same number set is never reissued to another business, even if the original employer goes out of business.

The main advantage of getting one is being able to operate. You can't run your business without it. You must apply for an employer identification number before you even get started. You also need an EIN to do the following:

• Hiring and paying employees
• Opening bank accounts , obtaining credit , and investing surplus cash
• Maintaining corporate shields
• Filing business taxes and registering state taxes

Getting an EIN allows you to keep your personal finances separate from your business ones. This allows you to shield your personal information and keep it protected from identity theft .

Self-employed individuals such as subcontractors don't need an EIN. However, they can still get one and it might be a good idea. As they must give an identification number to those paying them for tax reporting purposes. An EIN can be used instead of their social security number to protect against identity theft.

Businesses that change their ownership structure usually must apply for a new EIN. For example, sole proprietors who plan to incorporate their businesses must apply for a new EIN.

Closing Your Employee Identification Number

Once you are assigned an EIN, that identification number will forever be associated with you and your company. That EIN becomes permanently associated with that entity, and the IRS can technically never cancel an EIN.

An EIN is a critical part in required financial reporting. Even if an entity never files any return, the EIN is still associated with it. Once an EIN is issued, the identification number can be used at a later day if the entity needs.

If you do receive an identification number but later decide the number was never needed, the IRS can close your associated business account. This is often the case for startup companies that never actually launch. A physical letter must be mailed indicating the legal name, business address, EIN number, and reason for the account closure. The EIN will remain; only the IRS business account will be suspended.

Employee Identification Number vs. Taxpayer Identification Number (TIN)

A Tax Identification Number (TIN) is a broad term used to describe any type of identification number. An EIN is a specific type of TIN. A TIN is a generic descriptor for an assortment of numbers that can be used on a tax form including but not limited to:

• EIN (Employer Identification Number)
• SSN (Social Security Number)
• ITIN (Individual Taxpayer Identification Number)
• ATIN (Taxpayer Identification Number for Pending U.S. Adoptions)
• PTIN (Preparer Taxpayer Identification Number)

Depending on the nature of the particular taxpayer, the EIN may or may not be the TIN used by the IRS. For sole proprietors, the TIN is often their Social Security number. For corporations , partnerships, trusts, and estates , their TIN is often an EIN.

What Happens If You Lose or Misplace Your EIN?

If you misplace your EIN, look for it on the notice sent to you by the IRS when your EIN was issued. You can also try to recover it by contacting the financial institution where you do your day-to-day banking. You can also find it on your previous tax returns. If all else fails, contact the IRS' Business & Specialty Tax Line at 1-800-829-4933. Make sure you have any identifying information on hand before you speak to an operator.

Does My Business Need an EIN?

Most businesses will need an employer identification number. Specifically one will need an EIN if it has employees, operates as a corporation or partnership, files certain tax returns (Employment, Excise, or Alcohol, Tobacco, and Firearms), withholds taxes on income, other than wages, paid to non-resident aliens, or has a Keogh plan. Additionally, individuals involved with organizations such as trusts, estates, and non-profits, among others, will need an EIN.

How Do I Find an Employer Identification Number?

You can find an employer identification number using the IRS notice generated when you applied for it, with banks or creditors you used it to open accounts at, on any state licenses or permits, previous tax returns, or by contacting the IRS.

How Long Will It Take to Get an EIN?

When applying online, you can get an EIN immediately. It normally takes one week to get an EIN, when applying by fax. The IRS also accepts paper mail applications, though it quotes an expected turnaround time of four to five weeks.

An employer identification number (EIN) is a unique nine-digit number that is assigned to a business entity. Every business needs an employer identification number to report taxes. To request an EIN, applicants must fill out Form SS-4, available on the IRS website. The EIN must not be confused with the tax identification number (TIN) which is a broader term used to describe any type of identification number. Thus, an EIN is a specific type of TIN.

Internal Revenue Service. " Do You Need an EIN? "

Internal Revenue Service. " Form SS-4 Application for Employer Identification Number ."

Internal Revenue Service. " How to Apply for an EIN ."

Internal Revenue Service. " Apply for an Employer Identification Number (EIN) Online ."

Internal Revenue Service. " Canceling an EIN - Closing Your Account ."

Internal Revenue Service. " Do You Need a New EIN? ."

Internal Revenue Service. " Lost or Misplaced Your EIN? "

Internal Revenue Service. " How Long Will it Take to Get an EIN? "

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What’s the Difference Between a Tax ID Number and a Corporate Number?

Table of Contents

Tax identification numbers (TINs) and corporate numbers are similar concepts with some important distinctions. 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. 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.

What is a tax ID number? 

A TIN is an ID number the IRS uses to administer tax laws . The purpose is to assign a number to each taxpayer, whether that’s an individual or a business. Each person’s or business’ number is unique to them, which makes it easy for the government to track.

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. When you first start a business, you apply for a taxpayer ID number through the IRS.

What is a corporate number?

Corporations and LLCs receive a corporate number upon approval of their articles of incorporation . This number is equivalent to the federal (TIN) or an EIN.

“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.

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. The company can then use this number to apply for an EIN. In most states, though, a corporate number is the equivalent of an EIN.

What is the difference between a tax ID number and a corporate number?

The term “taxpayer identification number” refers to five different types of numbers used to identify taxpayers:

• Social Security numbers
• Employer identification numbers
• Individual taxpayer identification numbers
• Taxpayer identification numbers for pending United States adoptions
• Preparer tax identification numbers

For businesses, EINs are the most relevant tax ID numbers. These help the government track business taxation at the federal level. Sole proprietorships and single-member LLCs may use Social Security numbers as their business’ tax ID number.

The terms “corporate number” and “EIN” can be used interchangeably. The official term used by the IRS and other government entities is “employer identification number” or “federal tax identification number.”

Tax ID numbers are used for federal taxation and apply to both individuals and businesses, whereas corporate numbers and EINs apply solely to businesses.

Types of tax identification numbers

The five types of tax ID numbers differentiate the wide range of taxpayers. Here’s a detailed look at each type.

This is also referred to as a “federal tax identification number” or “federal employer identification number.” EINs identify business entities, like Social Security numbers for businesses.

EINs for publicly traded companies and nonprofits are public information. Nonprofit EINs are available so that people and businesses donating to the nonprofit can confirm that it holds tax-exempt status from the IRS. This is a good way to confirm a nonprofit is registered correctly with the IRS before donating to the organization. Businesses can apply for an EIN through the IRS website .

“Businesses that are registered with the IRS typically use an employer ID number for the business identity,” said Ozelli. “An EIN is used by all other types of businesses, even if the business has no employees … The single-member LLC business type is an exception. If you are the sole owner of an LLC, you should use your Social Security number, not the EIN of the business.”

Social Security number

To receive a Social Security number, you either need to be a U.S. citizen or a legal alien. A Social Security number is a nine-digit identification number that is formatted like “###-##-####.” An individual needs this number to get a job and to collect Social Security and other government benefits. The Social Security Administration stresses the importance of keeping these numbers safe and private. Some businesses, like sole proprietorships, use the owner’s personal Social Security number on tax forms related to the business.

“An employer ID and a Social Security number are both tax IDs,” said Tom Wheelwright, certified public accountant and CEO of WealthAbility. “Nonresidents of the U.S. can get a separate individual taxpayer identification number to report your personal income to the IRS.”

Individual taxpayer identification number

Formatted just like a Social Security number, an individual TIN (ITIN) is “a tax processing number only available for certain nonresident and resident aliens, their spouses and dependents who cannot get a Social Security number,” according to the IRS.

Taxpayer identification number for pending U.S. adoptions

An ATIN is a temporary nine-digit code for those adopting a U.S. citizen or resident child for cases where the adopting taxpayers are unable to get a Social Security number before filing taxes. This is a very specific use case and this form of tax ID is personal in nature.

Preparer tax identification number

Paid tax preparers are required to use preparer TINs (PTINs) on any tax returns they prepare. You can apply for this number online or with a paper form.

Additionally, there are state tax ID numbers , which are only used to report state taxes. [Are you interested in choosing the right online tax software to help your small business?]

Where can I find my tax ID numbers?

Understanding the different types of tax ID numbers available to your business is the first step. It’s also important to know what paperwork is required and where you can access this information.

You can find your Social Security number on your Social Security card. You have to provide it on several important documents, like your W-2 form, tax returns and bank applications.

If you lost your card and can’t remember your number, you can fill out a Social Security card application online , which you can print and turn in to your local Social Security office along with the appropriate documents. If you want to check your Social Security number online, you can set up your Social Security Administration account as long as you can provide the appropriate identification.

Employer identification number

The IRS assigns your EIN. To obtain one, you will need to complete and file Form SS-4 . You can file the form online, by mail or fax or over the phone if your business started outside of the U.S.

To file for your ITIN, mail a completed Form W-7 , proof of your identity and any foreign state documentation to the IRS at this address:

Internal Revenue Service Austin Service Center, ITIN Operation PO Box 149342 Austin, TX 78714-9342

You can also submit your ITIN application in person through an IRS-authorized Certifying Acceptance Agent program or contact your local IRS Taxpayer Assistance Center to have the IRS send you your ITIN by mail.

You can get a TIN for pending U.S. adoptions (ATIN) by filing Form W-7 A . You may also get this application in person at the IRS office or by calling (800) 829-3676.

You can obtain your PTIN online . You can also file Form W-12 , which will take about four to six weeks to process.

Obtain your businesses tax ID number right away

If you plan on launching your business, one of the first steps should be obtaining a tax identification number and incorporating as an LLC or corporation. While independent contractors that are merely freelancing can wait until their business grows, any company planning on doing substantial business from day one should make sure all this documentation is in place and recognized by all relevant state and federal governments. Ensuring all your legal documentation is complete is the first step to building a successful business that will stand the test of time.

Tejas Vemparala also contributed to this article. Some source interviews were conducted for a previous version of this article.

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• TAX PRACTICE & PROCEDURES

Issues With Employer Identification Numbers

• IRS Practice & Procedure

Practice & Procedures

Employer identification numbers (EINs) are federal tax identification numbers assigned by the IRS to certain entities and individuals. The process of obtaining this number has become much easier in recent years and normally does not present any problems for the practitioner. This item reviews the few issues practitioners may face, including who needs a number and who does not; procedures for obtaining the number; answers to questions on Form SS-4, Application for Employer Identification Number ; dealing with a lost or unknown number; and verifying numbers for information-reporting purposes.

Generally, the IRS requires businesses or, in certain cases, individuals to obtain an EIN if they will have employees; are a partnership or corporation, including a not-for-profit; are required to file employment, excise, or alcohol, tobacco, and firearms tax returns; are required to withhold taxes on income other than wages paid to a nonresident alien; establish a qualified retirement plan; open an estate; or engage in any of several other activities. Additionally, opening an account at a financial institution requires a number matching the business name. In some cases, obtaining an EIN should prompt the practitioner to inquire of the resident state if a unique state number is also required. Also, for tax-exempt organizations, the EIN is not a tax-exempt number. That term generally refers to a number assigned by a state agency for sales or use tax purposes.

Until an EIN is obtained, many important business functions will be delayed, including use of the Electronic Federal Tax Payment System and filing of election forms and returns. This could result in penalties. If, by the time a tax deposit is due, the client does not have an EIN, payments should be sent to the IRS Service Center where the client files, with a notation that the EIN has been applied for and the date.

EINs can be applied for online, by fax, by mail, or by phone. The variety of choices and the instantaneous results from the online process should make a number available as needed. Practitioners should note that effective May 21, 2012, the IRS limited the number of EINs issued to one per responsible party per day. This change was made, according to the IRS, to ensure fair and equitable treatment for all taxpayers. For practitioners accustomed to obtaining several numbers at once, this has created a planning issue. In the event a return filing is due, attach a completed SS-4 to the signed tax return and mail both forms to the appropriate address. Applications by fax are supposed to receive a four-business-day turnaround and those sent by mail at least a four- to five-week turnaround. Telephone applications are for international applicants. One other limitation of the online application occurs if the responsible party is an entity with an EIN previously obtained through the internet. In this case, fax or mail methods are required. Clearly, this situation creates an e-file exception for many, so advance planning is necessary.

If a business previously obtained an EIN but has misplaced or lost the number, it can try to locate the original confirmation. The business should inquire with the bank where accounts were opened, because banks require an EIN verification in most cases, or try to locate a previously filed return. As a last resort, the taxpayer can call the IRS Business and Specialty Tax Line at 800-829-4933. After verifying the caller’s identity, this service will provide the number to an authorized person.

Several events in a business’s life require a new EIN. Generally, a sole proprietor needs only one EIN, regardless of the number of businesses operated and Schedules C, Profit or Loss From Business (Sole Proprietorship) , filed. However, if a sole proprietor legally changes its form of business to a corporation or a partnership, a new EIN is required.

More troublesome is the entity that elects to change its status for tax purposes but not its legal form of business. This election on Form 8832, Entity Classification Election , permits a business entity to change its classification for tax purposes only. The instructions to Form 8832 clearly state that any entity that has an EIN will retain that EIN even if its federal tax classification changes under Regs. Sec. 301.7701-3.

Obviously, an entity that does not have an EIN must apply for one on Form SS-4 before completing Form 8832. If a disregarded entity (sole proprietor or single-member LLC) changes its classification so that it becomes treated as a partnership or association and it had an existing EIN, then it must continue to use that EIN. If the disregarded entity did not have an EIN, it must apply for one and not use the identifying number of the single owner. Although some may feel a new EIN provides more evidence of a change in entity and some level of creditor protection, an election pursuant to these regulations is merely a tax election—the legal status of the entity does not change. A business that is subject to a bankruptcy proceeding also needs a new EIN.

Care should be exercised when completing Form SS-4 because the choices made will determine the tax returns the IRS expects. Indicating a business will have employees in the first quarter means the IRS will expect employment tax returns for that period even if there are no employees. A failure to file will result in a notice of nonfiling and require a response.

Another problem frequently encountered by practitioners and clients is verifying an EIN for a vendor, contractor, or other entity. Using an incorrect number on any tax form can result in a need to execute backup withholding procedures. The IRS offers a prefile service to verify and match EINs for tax practitioners through its e-services website. This service is available to payers and agents that submit any of six information returns. The interactive matching now allows payers to match up to 25 EIN and name combinations against IRS records before submitting returns, which can save valuable resources in the event of errors. Online tutorials are available after logging into e-services and in Publication 2108A, On-Line Taxpayer Identification Number (TIN) Matching Program .

On May 3, 2013, the IRS issued final regulations (T.D. 9617) that require all employers with EINs to provide updated information to the IRS in a prescribed manner. The regulations went into effect Jan. 1, 2014, and require current, accurate information about the taxpayer and its responsible parties within 60 days of a change. The IRS published a new Form 8822-B, Change of Address or Responsible Party—Business , for EIN applicants to use in connection with the updated information. This procedure pertains primarily to entities that listed nominees temporarily authorized to act on an entity’s behalf. The IRS hopes the new regulations will improve its ability to determine the correct ownership details and proper responsible individuals as well as prevent fraud and abuse. Although the form is described as mandatory, the instructions state that failure to file the form will not result in penalties.

EINs can have important tax implications for businesses. This number and information on the Form SS-4 is shared with the Social Security Administration as well as other federal and state agencies. A federal EIN will never be reused in the event a business is closed.

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Small Business Blog

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Employer Identification Numbers (EINs): A Comprehensive Cheat Sheet for Every Business Owner

Estimated reading time: 5 minutes

An employer identification number (EIN) is a unique identifier, which is assigned to every business entity. It is also referred to as a Federal Tax Identification Number. Most businesses must have an EIN before they can begin operating.

Made up of nine digits, EINs are formatted like XX-XXXXXXX and are unique to each business. In fact, EINs identify businesses in the same way that Social Security numbers identify individual residents. However, unlike the sensitive nature of Social Security numbers, a business EIN does not need to be kept private.

EINs not only help the Internal Revenue Service distinguish businesses, but allow business owners to report their taxes. In addition, with an EIN, businesses are able to apply for credit cards and open bank accounts.

Simply put, you must have an EIN if you employ others, operate as a corporation or partnership, file tax returns, or withhold taxes. EIN numbers do not expire, and the same number is never assigned to two businesses.

All business types can obtain an EIN, including LLCs, sole proprietorships, non-profits, partnerships, government agencies, S corporations, and estates/trusts. It is important to keep in mind that once a business has an EIN, the business must apply for a new EIN – if they decide to change their ownership structure. It is not necessary on business name changes or location changes.

How Can a Business Obtain an EIN?

There is no fee to apply for an EIN and the process is simple. Businesses can apply via phone, fax, mail, or online application. To apply online, a business must be located in the U.S. or U.S. territories. To apply, applicants can visit the IRS website and complete Form SS-4: Application for Employer Identification Number. The required information includes:

–The name of the responsible party, that individual can be the company’s principal officer, partner, or owner, as well as their individual taxpayer identification number (ITIN).

–The type of entity

–The reasons for applying, such as developing a new business or change of organization

–The start or acquisition date

–The principal business industry

  What are the  Benefits of Obtaining an EIN?

There are several advantages of having an EIN. The main benefits include being able to function as a business and separating personal income from business income. In addition, every business requires an EIN to hire and pay employees; open bank accounts, get credit, and invest; file business taxes; and register for state taxes..

Sole proprietors who act as independent contractors or freelancers are typically required to provide either a Social Security number or an EIN. There is no question that using an EIN is a better way to protect oneself from identity theft, whether you’re self-employed or own a small business.

Which Specific Business Entities Require an EIN?

Most business entities require an employer identification number, including those that have employees, operate as corporations or partnerships, file certain tax returns, or withhold income taxes on income other than wages. However, because each type of business entity has different requirements regarding an EIN, it is important to understand the numerous requirements listed below:

Corporations  need their own EIN because a corporation is legally considered to be a separate entity. In addition, if the name of a business changes, if the business becomes a subsidiary of another corporation, or if the structure changes to a sole proprietorship or partnership, the corporation may need to acquire a new EIN.

Partnerships  require EINs in most cases. Acquiring a new EIN is necessary in the following scenarios: if one partner develops a sole proprietorship, if the partnership incorporates, or if a new partnership is formed.

Limited Liability Companies (LLCs)  need EINs unless the business is a single-member LLC. However, an EIN is required when the business has one or more employees or the business is declaring bankruptcy.

Sole proprietorships  typically do not need EINs for their business.

Nonprofit organizations  are required to obtain an EIN before applying for 501(c)(3) tax-exempt status.

Trusts  may need to apply for EINs for certain types of trusts. Irrevocable trusts, including testamentary trusts, need their own EINs because they are separate, legal entities once created and funded.

Estates  may need an EIN. Typically, an EIN is required in situations where assets must be probated before being distributed. The individual using the EIN for an estate is considered a fiduciary, such as a personal representative or executor appointed by the courts to administer and distribute the deceased person’s estate.

Employee benefit plans , including health and retirement plans, need their own EINs.

Personal service corporations  may need an EIN for tax purposes. If a business performs personal services, such as consulting, engineering, accounting, health, or law, your business may be considered a personal service corporation, and an EIN is important for tax purposes.

Household employers  (employing someone to help in your home) require an EIN. In this particular scenario, an EIN is needed to report payroll tax withholding.

Having an EIN is crucial to your business operations.  We’re here to ensure your EIN application is filed correctly, so you can keep moving forward.  When you’re ready to start your business, contact our specialists or form your free LLC online today!  

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Applying for an Employer Identification Number (EIN) is a free service offered by the Internal Revenue Service. Beware of websites on the Internet that charge for this free service.

All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the “responsible party,” controls, manages, or directs the applicant entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.

Apply Online

The Internet EIN application is the preferred method for customers to apply for and obtain an EIN. Once the application is completed, the information is validated during the online session, and an EIN is issued immediately. The online application process is available for all entities whose principal business, office or agency, or legal residence (in the case of an individual), is located in the United States or U.S. Territories.

Apply by Fax

Taxpayers can fax the completed Form SS-4 PDF application to the appropriate fax number (see Where to File Your Taxes (for Form SS-4) ), after ensuring that the Form SS-4 contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type. If the taxpayer's fax number is provided, a fax will be sent back with the EIN within four (4) business days.

Apply by Mail

The processing timeframe for an EIN application received by mail is four weeks. Ensure that the Form SS-4 PDF contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type and mailed to the taxpayer. Find out where to mail Form SS-4 on the Where to File Your Taxes (for Form SS-4) page.

Apply by Telephone – International Applicants

International applicants may call 267-941-1099 (not a toll-free number) 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN. The person making the call must be authorized to receive the EIN and answer questions concerning the Form SS-4, Application for Employer Identification Number PDF . Complete the Third Party Designee section only if you want to authorize the named individual to receive the entity’s EIN and answer questions about the completion of Form SS-4. The designee’s authority terminates at the time the EIN is assigned and released to the designee. You must complete the signature area for the authorization to be valid.

Other Important Information

Daily limitation of an employer identification number.

Effective May 21, 2012, to ensure fair and equitable treatment for all taxpayers, the Internal Revenue Service will limit Employer Identification Number (EIN) issuance to one per responsible party per day. This limitation is applicable to all requests for EINs whether online or by fax or mail. We apologize for any inconvenience this may cause.

Responsible Party

In order to identify the correct individuals and entities applying for EINs, language changes have been made to the EIN process. Refer to  Responsible Parties and Nominees  to learn about these important changes before applying for an EIN.

Third Party Authorization

The Third Party Designee section must be completed at the bottom of the Form SS-4. The Form SS-4 must also be signed by the taxpayer for the third party designee authorization to be valid. The Form SS-4 must be mailed or faxed to the appropriate service center. The third party designee's authority extends to "newly" assigned EINs only and terminates at the time the EIN is assigned and released to the designee.

Home-Care Service Recipient

If you are a home-care service recipient who has a previously assigned EIN either as a sole proprietor or as a household employer, do not apply for a new EIN. Use the EIN previously provided. If you cannot locate your EIN for any reason, follow the instructions on the Lost or Misplaced Your EIN? webpage.

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Company Identification Number: Everything You Need to Know

A company identification number is given to a company when it's formed and the articles of organization or incorporation are approved by the Secretary of State. 3 min read updated on February 01, 2023

A company identification number, or CID, is given to a company when it is formed and the articles of organization or incorporation are approved by the Secretary of State. The CID is an important step when establishing a new company as it acts as a way to track important company information. After the company identification number is assigned, the incorporator or a legal agent of the company can apply with the Internal Revenue Service to obtain a tax ID number, or employer identification number (EIN). The CID and EIN are different and are used for different purposes.

The EIN is nine digits long and is displayed as XX-XXXXXXX. However, some states have state EIN's. For example, in California, the numbers appear in a different format based on the business entity type. Corporations are given seven-digit numbers that begin with the letter C, like C9876543. Whereas LLCs or Limited Liability Companies receive twelve-digit numbers that start with the year of incorporation, like 2018123987165432.

Employer Identification Number

The employer identification number is also known as a tax identification number and is assigned by the Internal Revenue Service. This number is required to file the company taxes. The number is the equivalent of a persons social security number, but for a business. An EIN is required by any business that:

• Hires employees
• Operates as a corporation or partnership
• Offers tax-deferred pension plans
• Withholds income taxes for non-resident aliens
• Pays ATF taxes
• Deals with REITs, farms, non-profit activities, or certain trusts

Employee identification numbers are important as they act as a way to separate companies from each other. If the ownership structure changes in a significant manner, a new EIN may be required. EIN's are used only for taxes. It is important to note that EIN's do not do any of the following:

• Replace a person's social security number
• Provide authorization to work in the United States
• Establish eligibility for Social Security or other benefits

Using an EIN to Look Up a Company

Any company that files taxes can be found by searching their EIN. The filings show the current year's status regarding leadership and company ownership. Companies that have EIN's include:

• Corporations
• Limited Liability Companies (LLC)
• Sole proprietorships
• Partnerships
• Non-profits
• Government agencies

The steps to search for the EIN vary by business type.

• Public companies who sell some or all of their stock to the general public are required to submit documentation to the United States Securities Exchange Commission (SEC) . The documentation is considered public record by law and can be accessed easily. To do so, visit the SEC's EDGAR database to complete an EIN lookup. One document that is filed annually is the 10K annual report which has the employee identification number listed at the top of the first page. This report lists the company's ownership and leadership information.
• Paid databases will require an account and payment will be assessed either on the number of searches or the time you spend on the site. An example includes FEINSearch, which has a database that includes millions of identification numbers. Free sites include Westlaw and LexisNexis.
• Full company name
• Owner names
• Leadership names
• Non-profit organizations do not have owners like for-profit companies do, instead they have a board of directors or trustees who handle the organization's management and finances. In non-profits, any profit is put back into the organization. For tax filings, non-profits file Form 990. Through this filing you will be able to locate information regarding board members in Part V-A. All of this information is available through Guidestar which is a database for non-profit organizations and the information shared on Form 990. This site is free for a basic search, but requires registration.

If you need help with your company identification number, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Employer Identification Number (EIN): What It Is, How to Apply

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An employer identification number, or EIN, is a nine-digit number assigned to your company by the IRS. You’ll use it when filing your business's income tax return or payroll tax return.

Not all businesses need an EIN, but there’s little downside in getting one. Applying is free and only takes a few minutes online at IRS.gov. An EIN also comes in handy to separate your business and personal finances, open a business bank account or apply for a business loan.

Here’s what you need to know about getting an employer identification number.

ZenBusiness

$0 + state fees  

What is an EIN?

An employer identification number, or EIN, is a unique tax identification number for your business. Think of it as a Social Security number for your business activities. The IRS uses your EIN to keep track of your business tax returns, and other financial institutions may ask for it as part of their identity verification processes.

Who needs to get an EIN?

Partnerships, corporations and multi-member LLCs must get an employer identification number to file their business income tax return.

If you have employees, you’ll also need an EIN to pay and file payroll taxes — even if your business is a sole proprietorship.

» MORE: Can you open a business bank account without an EIN?

Certain types of organizational structures require EINs as well, including:

Nonprofit organizations.

Businesses that pay excise, alcohol, tobacco or firearm taxes.

Businesses with a Keogh plan.

Real estate mortgage investment conduits.

Farmers' cooperatives.

Plan administrators.

Certain types of trusts.

If you’re a sole proprietor or single-member LLC with no employees, you have the option to use your Social Security number instead of an EIN when filing business taxes. But considering the benefits of getting an EIN , it’s a good idea to apply for one anyway to set your business up for future growth.

» MORE: Business structures: Which is right for you?

How to apply for an employer identification number

The IRS lets you apply for an employer identification number online or by mail, fax or phone. Online is the easiest and fastest way to get an EIN, making it the best option if you’re eligible.

The application process is free, so be wary of companies that charge you to apply for an EIN on your behalf. And if you already have one but have lost track of it, look up your EIN before applying for another.

Follow these steps to get an EIN:

1. Make sure you’re eligible to get an EIN online

To get an employer identification number online, you’ll need to meet these requirements:

Your principal business must be located in the U.S. or U.S. territories. Your principal business is the main income-generating activity that you do.

A “responsible party” — like the business owner or a key principal officer, general partner or trustor — must have a valid SSN or ITIN.

You can still get an EIN if you don’t meet those qualifications. However, you’ll need to apply via mail, fax or phone. International applicants who do not have a business presence or residence in the U.S. yet must apply by phone.

2. Gather the necessary information

To complete the EIN application online, you’ll need to provide the following details:

Your business entity type.

Your full legal name and personal taxpayer identification number (SSN or ITIN).

For LLCs, how many members your LLC has.

The legal name of your business and state where the articles of incorporation were filed.

Your business address.

Primary reason for applying (e.g., launching a business, banking purposes, hiring employees).

Date you started or acquired your business.

If the business owner or another responsible party is designating someone else to apply for an EIN on their behalf, then they need to fill out and sign Form SS-4 and keep a copy in their files.

3. Submit your application and wait

If you apply online, you’ll receive your EIN immediately once you submit your application. Click here to start the process..

You’ll have to wait longer if you apply for an EIN by fax or mail. Fax applications take around four business days to process, and mailed applications may take four to five weeks.

» MORE: Best business credit cards for LLCs

Do you ever need to change your EIN?

You may need to apply for a new EIN if:

Your business structure changes. For example, you'll need a new EIN if you are a sole proprietor and decide to incorporate or take on a partner in your business.

You are subject to a bankruptcy proceeding.

Your corporation merges with another one, creating a new entity.

If you’re changing the name of your business or opening a new location, you generally won’t need to reapply for an employer identification number.

What if you lose your EIN?

If you lose or misplace your EIN, there are a number of ways to look up your business tax ID :

Find the computer-generated notice you received when you applied for an EIN.

If you opened a bank account using the EIN, contact your bank to retrieve it.

Find your EIN on a previously filed tax return.

Contact the IRS Business & Specialty Tax Line during business hours if you're unable to find your identification number through other methods.

A version of article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Product names and service plan identifiers for licensing

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When managing licenses in the Azure portal or the Microsoft 365 admin center , you see product names that look something like Office 365 E3 . When you use PowerShell v1.0 cmdlets, the same product is identified using a specific but less friendly name: ENTERPRISEPACK . When using PowerShell v2.0 cmdlets or Microsoft Graph , the same product is identified using a GUID value: 6fd2c87f-b296-42f0-b197-1e91e994b900 . The following table lists the most commonly used Microsoft online service products and provides their various ID values. These tables are for reference purposes in Microsoft Entra ID, part of Microsoft Entra, and are accurate only as of the date when this article was last updated. Microsoft will continue to make periodic updates to this document.

• Product name : Used in management portals
• String ID : Used by PowerShell v1.0 cmdlets when performing operations on licenses or by the skuPartNumber property of the subscribedSku Microsoft Graph API
• GUID : GUID used by the skuId property of the subscribedSku Microsoft Graph API
• Service plans included : A list of service plans in the product that correspond to the string ID and GUID
• Service plans included (friendly names) : A list of service plans (friendly names) in the product that correspond to the string ID and GUID

This information last updated on May 6th, 2024. You can also download a CSV version of this table here .

Service plans that cannot be assigned at the same time

Some products contain service plans that cannot be assigned to the same user at the same time. For example, if you have Office 365 E1 and Office 365 E3 in your tenant, and you try to assign both licenses to the same user, the operation fails. This is because the E3 product contains the following service plans that conflict with their E1 counterparts:

• SharePoint Online (Plan 2) conflicts with SharePoint Online (Plan 1).
• Exchange Online (Plan 2) conflicts with Exchange Online (Plan 1).

When using group-based licensing, you experience this error condition . When using PowerShell, you see the MutuallyExclusiveViolation error.

This section lists the most common service plans that are mutually exclusive, grouped by service type. You can use this information to plan your license deployment and avoid assignment errors. These tables are for reference purposes and are accurate only as of the date when this article was last updated. Microsoft does not plan to update them for newly added services periodically.

Service: Microsoft Entra ID

All service plans related to Microsoft Entra ID can now be assigned together, to the same user. This simplifies certain license management scenarios, such as moving users from Microsoft Entra Basic to Microsoft Entra ID P1.

Service: Dynamics CRM

The following service plans cannot be assigned together:

Service: Exchange Online

Service: microsoft 365, service: intune, service: sharepoint online, service: skype for business, service: yammer.

To learn more about the feature set for license management through groups, see the following:

• What is group-based licensing in Microsoft Entra ID?
• Assigning licenses to a group in Microsoft Entra ID
• Identifying and resolving license problems for a group in Microsoft Entra ID
• How to migrate individual licensed users to group-based licensing in Microsoft Entra ID
• How to migrate users between product licenses using group-based licensing in Microsoft Entra ID
• Microsoft Entra group-based licensing additional scenarios
• PowerShell examples for group-based licensing in Microsoft Entra ID

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