Is the EIN the same as Tax ID number for a new LLC I'm starting?

Oh that's such a relief! I was worried I'd have to go through another application process. So I can just use this EIN for everything tax-related? What about state taxes? Is it the same number or do I need something else for state-level stuff?

Yes, you'll use that same EIN for all your federal tax matters! For state taxes, it depends on your state. Many states use the federal EIN for state tax purposes too, but some states issue their own separate state tax ID numbers. You'll want to check with your specific state's department of revenue or taxation website. Usually, when you register your business with the state, they'll tell you if you need a separate state tax ID or if you can just use your federal EIN. If you're collecting sales tax, you might need a separate sales tax permit number as well.

Does it work for S-corps too? I'm trying to decide between LLC and S-corp and wondering if this would help figure out the differences in paperwork requirements.

Sounds interesting but how secure is it? I'm always nervous about uploading tax documents to random websites. Do they store your business info or is it just a one-time analysis?

Yes, it absolutely works for S-corps too! It actually has a comparison feature that shows the different documentation requirements between LLCs and S-corps, which might help with your decision. It breaks down the pros and cons of each structure for your specific situation. As for security, they use bank-level encryption and don't permanently store your documents. They analyze them and then the files are automatically deleted after 14 days. You can also manually delete them immediately after analysis if you prefer. I was skeptical at first too, but their privacy policy is really solid.

Wait, how does this actually work? Do they have some special connection to the IRS or something? Sounds too good to be true honestly.

Yeah right. No way this actually works. I've been dealing with the IRS for years and there's no "skip the line" trick. You just have to call at 7am and wait like everyone else. Sounds like a scam to me.

They don't have special IRS connections - they use a system that calls and waits on hold for you. It's basically like having someone else sit on hold instead of you. When they detect that a human agent is about to answer, they call your phone and connect you. I was super skeptical too! But the way it works is completely legitimate. They're not skipping any lines or doing anything special with the IRS - they're just handling the painful waiting part. I was surprised when it actually worked, especially since I had been trying to get through for weeks on my own with no luck.

This is super helpful! Quick question - do I need to put the EIN on all my invoices to clients or is that not necessary? Also, how do I know if I'm considered a "single-member" LLC? It's just me right now but I might bring on partners later.

You don't typically need to put your EIN on invoices to clients unless they specifically request it. Some larger companies or government entities might require it for their vendor records, but it's not generally required for standard invoicing. A single-member LLC means you're the only owner. If it's just you right now, then yes, you're a single-member LLC. If you bring on partners later, you'd convert to a multi-member LLC, which would require different tax filing (partnership return instead of reporting on your personal return). That's a fairly simple process, so don't worry too much about that now - you can cross that bridge when you get there.

I got a business credit card about 2 months after getting my EIN, but they still checked my personal credit. Most business cards for new businesses will require a personal guarantee unless your company has established credit history. So while the EIN helps establish a separate business identity, your personal credit will still matter initially.

This is exactly what I needed to hear! Thank you for the reassurance about the EIN being the Tax ID - I was starting to second-guess myself. And great point about keeping the confirmation letter safe. I actually just have it sitting in a pile of papers on my desk right now, so I'll definitely scan it and put the original somewhere secure. The sales tax question is really helpful too. I'm planning to offer both SaaS subscriptions and some consulting services, so I'll need to look into whether either of those requires sales tax collection in my state. This whole business setup process feels like drinking from a fire hose, but breaking it down into these specific steps makes it way more manageable. Thanks for the encouragement that it gets easier - as a developer, I'm used to complex systems, but business/legal stuff feels like learning a completely different programming language!

This is really helpful! I'm also just starting out with my first LLC and was wondering about the same thing. Quick follow-up question - when you say banks want to see the official EIN confirmation letter, is that the CP 575 notice that the IRS sends out? I applied for my EIN online and got it immediately, but I'm still waiting for something in the mail. Should I wait for that letter before trying to open a business bank account, or is there another way to prove I have a valid EIN?