What are the different tax ID number types

  • Updated

Your tax ID number is a string of 9 digits the IRS uses to distinguish your business from the millions of other small businesses in the United States.

Why do I need it?

Melio requires your tax ID number to legally verify your business. You only need to provide it once when making or receiving your first payment.

The 3 types of tax ID numbers 

Most small business owners have one or more of the following tax ID types:

  • Employer identification number (EIN)
  • Social Security number (SSN)
  • Individual taxpayer identification number (ITIN)

Note: The difference between tax ID numbers.

The numbers you have will mostly depend on immigration status. 

Taxpayer Identification Number Abbreviation

Who needs it? 

What type of business is allowed to use it?

Employer identification number 


Used by employers, corporations, partnerships, and multi-member LLCs. 

All businesses

Social security number


Used by individuals, sole proprietors, and single-member LLCs. 

Sole Proprietors or Trust/Estate

Individual Taxpayer

Identification Number

ITIN Used by nonresident and resident aliens, their spouses, and dependents who cannot get an SSN. 

Sole Proprietors or Trust/Estate


When do I need to provide my tax ID number?

When you make your first payment or get paid for the first time, you’ll need to provide your company’s legal information as the last step in the process. Your tax ID number is one of them. These legal details include:

  • Legal business name.
  • Business phone number.
  • Legal business address.
  • Industry the business operates in.
  • Business type:
    • Sole-proprietorship
    • Partnership 
    • Limited Liability Company 
    • Corporation
    • Non-profit organization
    • Non-governmental organization
    • Municipal Corporation
  • Tax ID Number (only one).
    • EIN (Employer Identification Number).
    • SSN (Social Security Number).
    • ITIN (Individual Taxpayer Identification Number).

Important notes:

  • When entering your Tax ID number, make sure it is 9-digit long.
  • It's only required to enter once, and is only used internally to verify your business for legal purposes.

one last thing- legal details.png

Learn more about entering your business’s legal details

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