Unlike a personal taxpayer identification number, a separate state identification number might be required for your business in the states where it conducts business. However, if the business has employees or must pay any federal excise taxes, a separate EIN must be obtained for the business. A business owner who operates as a sole proprietorship or a single-member LLC can report business income on his personal return under his SSN.
An EIN is also used by estates and trusts that must report income to the IRS. This number is used on the business' tax returns and other reporting forms as the taxpayer identification number for the business. State taxing authorities accept either your SSN or ITIN on state tax returns and other forms.Īs a general rule, you must obtain a federal employer identification number from the IRS if you own a business. If you do not qualify for a Social Security number, the IRS will issue an Individual Taxpayer Identification Number to you for use on your tax returns.
This number is used on all tax returns filed with the Internal Revenue Service and, if necessary, your state tax agency for your personal taxes. Your personal taxpayer identification number is typically your Social Security number, which is issued by the Social Security Administration. If you own real estate, your property will be assigned a parcel number by a local government office, such as a county assessor, to keep track of property information, including real estate taxes assessed and paid.
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