Quick Comparison
| Feature | EIN | State Business ID |
|---|---|---|
| Full Name | Employer Identification Number | State Entity Number / Filing Number |
| Issued By | IRS (federal) | Secretary of State |
| Format | XX-XXXXXXX (9 digits) | Varies by state |
| Cost | Free | Included with filing fee |
| Used For | Federal taxes, banking, hiring | State filings, annual reports |
| Required? | Yes (for most businesses) | Auto-assigned when you register |
| How to Get | Apply on IRS.gov | Given when you file formation docs |
What Is an EIN?
An EIN (Employer Identification Number) is a nine-digit number assigned by the IRS. It identifies your business for federal tax purposes.
You need an EIN to:
How to get one: Apply for free on the IRS website (irs.gov). You can get one online in minutes. There is no cost.
What Is a State Business ID?
Your state business ID (also called entity number, filing number, or charter number) is assigned by the Secretary of State when you register your business.
You use it for:
You can find your state entity number by searching for your business in the state database.
Common Mistakes
Using your EIN on state forms
State filings require your state entity number, not your EIN. They are different systems.
Confusing EIN with SSN
If you are a sole proprietor without an EIN, you may use your SSN for taxes. But an EIN provides better privacy and is required if you have employees.
Thinking you only need one number
Most businesses need both an EIN and a state entity number. If you operate in multiple states, you may have multiple state IDs.