Federal Tax ID Number

A federal tax identification number, which is also known as an employer identification number (EIN), is pretty much a social security number for your business. The IRS uses this number to identify your business. Your federal tax ID number must always be used on all tax filings the business makes.

Some states even require businesses to have a state tax identification number as well as the federal tax ID number. These include Georgia, Illinois, Kentucky, Nevada, Tennessee, Vermont and Virginia. Some other states may require a state tax ID number for special entity types. Your best bet to find out if you are in one of these states that have special requirements, is to call you state tax authority. They will be able to answer most, if not all of your state-specific questions.