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 September 19, 2022
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.
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:
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:
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:
The steps to search for the EIN vary by business type.
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.