SmartFiling receives a lot of queries regarding the differences between an EIN and a tax ID and the IRS CP 575 form from business owners. Starting an LLC and lacking any clue about these, why they are important? If so, this guide is for you.

What Is a Tax ID for LLC?¶

LLCs are commonly called “tax ID” in reference to the Employer Identification Number (EIN) assigned by the IRS. Think of it as a Social Security Number that has been assigned to your business. It is a unique 9-digit number employed by the federal government for all its activities related to taxation concerning your company.
Generally, most businesses are required to obtain a tax ID, even if their LLC does not have employees. Here is a list of things that will require it:
Federal and state tax filings.
Opening and maintaining a business bank account.
Applying for business credit or loans.
Hiring employees.
Applying for certain business licenses and permits.

Tax ID, EIN, and CP 575 What’s the Difference?¶

Often, the terms tax ID and EIN are confusingly used, but the CP 575 will explain itself.
1. EIN (Employer Identification Number)
That is the real 9-digit number assigned by the IRS for your business identification. It looks like this: 12-3456789. This number is especially important for an LLC establishment to operate legally and professionally.
2. Tax ID
This could mean any kind of identification number used for tax purposes. For businesses, however, it usually means the EIN. But there are other tax IDs, such as Social Security Numbers for individuals, or ITINs for non-U.S. residents.
3. IRS CP 575 Form
When the IRS assigns an EIN to your business, they send a letter confirming it; this letter is called Form CP 575. This letter is the official evidence that your EIN was issued and is in good standing. Many banks, lenders, and government agencies require this form when you’re setting up financial or legal accounts for your LLC.

How to Apply for a Tax ID for Your LLC¶

By going online to the IRS website, an individual can obtain a tax ID for his or her LLC. The process becomes thorny for someone who does not quite know what entity classification or tax structure to choose.
This is why SmartFiling comes in handy. With us, you can now file your EIN hassle-free with our facilitated service, which will submit it on your behalf. In addition, we will deliver your IRS CP 575 letter for your records.
Here’s how the process will go:
Fill out the secure EIN application form among our LLC details.
SmartFiling will submit your information directly to the IRS, ensuring your application is complete and accurate.
Typically, your EIN and CP 575 confirmation letter will be sent to you within 24–72 hours.

Why Use SmartFiling for Your EIN?¶

At SmartFiling, we save time and avoid catastrophes for small businesses and entrepreneurs. Here’s what makes it stand out as a service:
Speedy turnaround time
Accurate filing and compliance support
Expert guidance in the way of LLC structure and tax classification
Dedicated customer support team
A tax ID is a necessity for starting your LLC and ensuring its long-term success. Let SmartFiling assist you in doing it right from the beginning.

Final Thoughts¶

Each LLC should be constructed on a sound basis, starting with the establishment of a valid Tax ID. Thorough knowledge of the EIN and the CP575 form can save precious time and some money and perhaps even legal troubles in the future.
Don’t let the paperwork slow you down! Head on to Smart Filing and apply for your tax ID for LLC today to further your journey toward a strong, compliant business.