Key Takeaways

  • A tax ID number lookup helps verify or locate a company’s Employer Identification Number (EIN), a nine-digit code used by the IRS to identify businesses for tax purposes.
  • The EIN functions much like a Social Security number for businesses and is used for banking, payroll, and filing taxes.
  • Businesses can perform a tax ID number lookup through IRS records, SEC filings, state databases, or third-party verification services.
  • Securities issuers, investors, and financial professionals often use EIN lookups to confirm the legitimacy of companies and their registration with regulatory authorities.
  • Publicly traded companies’ EINs can typically be found in SEC filings (like 10-K or 8-K reports), while private entities may require direct contact or authorized verification.
  • Always ensure compliance with privacy laws and the IRS’s data protection policies when performing EIN or tax ID lookups.

Securities: What Are They?

Securities are a financial instrument that gives people a form of company ownership. There are several types of securities, including stocks, bonds, and options. The issuer of the security is usually a company trying to raise revenue. The issuer can also be a state or local government as well. Due to state laws, the definition of a security can sometimes differ.

Securities are classified as either debt, equity, or derivatives.

  • Debt securities are like loans provided by investors. Examples of debt securities include government and corporate bonds or certificates of deposits. Rating companies such as Standard & Poor’s, Moody’s and Fitch’s evaluate how likely the bond will be repaid with rating such as AAA, BBB, or junk bonds). Corporate bonds are loans to a company, sovereign debt are bonds to a country, and treasury bonds are bonds issued by the U.S. government.
  • Equities are actual ownership interests of a company. Stocks traded on the stock market such as the New York Stock Exchange or NASDAQ are the most common example of an equity security.
  • Derivatives are contracts, and their value comes from the assets they represent. For example, you can purchase an option to buy a stock at a certain price without actually buying the stock upfront. Other examples of derivatives are: call options, put options, futures contracts, mortgage-backed securities, asset-backed commercial paper, collateralized debt obligations (CDOs), or auction-rate securities.

Securities do not include financial items that are backed by other assets. Home mortgages are not securities. Debts that are secured by an account receivable are also not considered securities.

Understanding Tax ID Numbers (EINs)

A Tax Identification Number (TIN), or Employer Identification Number (EIN), is a unique nine-digit code assigned by the Internal Revenue Service (IRS) to identify businesses for tax purposes. It is often used by corporations, LLCs, partnerships, and nonprofit organizations to file tax returns, open business bank accounts, and process payroll.

For entities issuing or trading securities, having an EIN is essential for regulatory compliance, tax reporting, and financial transparency. Investors may rely on tax ID number lookup tools to verify a company’s legitimacy before purchasing securities. These identifiers play a crucial role in preventing fraud and maintaining trust in financial markets.

Common uses of a tax ID number include:

  • Filing business and employment tax returns.
  • Reporting investment income from securities.
  • Verifying company identity during securities transactions.
  • Applying for business credit or opening brokerage accounts.

Securities Market

Securities are heavily regulated in the United States by the Securities Exchange Commission (SEC). The SEC operates under a series of federal laws that have roots in the Securities Act of 1933. State laws, known as Blue Sky Laws, also regulate the securities industry in that state.

Investors trade securities in both the primary and secondary markets. The primary market is where the company or government offers their securities for sale for the first time. The secondary market, like the New York Stock Exchange, sells securities among a variety of secondary investors.

The issuing company typically receives money for securities in the primary market during an initial public offering (IPO). After the IPO, any newly issued stock while still sold in the primary market is also called the secondary offering. Securities may also be offered privately to a restricted and qualified group though a private placement.

In secondary markets, securities are transferred as assets between investors which could mean selling securities for cash or other profits. Private securities may also be traded among qualified investors, but is less liquid for privately placed securities.

How to Perform a Tax ID Number Lookup

Performing a tax ID number lookup allows individuals, investors, or companies to find a business’s EIN for legitimate purposes such as due diligence, contract verification, or securities compliance.

Here are the most reliable ways to locate a business’s EIN:

  1. Check SEC Filings:
    Publicly traded companies list their EIN in filings like Form 10-K or Form 8-K available through the SEC’s EDGAR database.
  2. Use the IRS Exempt Organizations Search:
    Nonprofit entities’ EINs are publicly accessible through the IRS database.
  3. State Business Entity Searches:
    Many state Secretary of State websites allow users to search for a company and may display its registered tax ID or associated data.
  4. Contact the Business Directly:
    For private companies, the EIN can often be obtained by contacting the business’s accounting or legal department directly.
  5. Third-Party EIN Lookup Tools:
    Some verified third-party services compile EIN data for business verification purposes, but users should ensure compliance with data privacy laws.

Classes of Securities

  • Certified securities: securities in physical, paper form or held in a direct registration system using a transfer agent which holds the shares in book-entry form without physical certificates. The Depository Trust Company (DTC) is a universal depository allowing issuers to deposit a single global certificate representing all outstanding securities in an electronic format. Certified and uncertified securities do not differ in the rights or privileges of the shareholder or issuer.
  • Bearer securities: fixed income security where no ownership information is recorded and the security is issued in physical form to the new owner who is entitled to the coupon payments. The coupons are submitted by clipping the coupons attached to the bond and submitted for payments. These have not been legal in the U.S. municipal or corporate markets since 1982 and are typically only available in the secondary market.
  • Registered securities: have the name of the holder, issuer, and necessary details. Transfer between holders occurs through changes to the register.

Why Are Securities Important?

Securities are important because they provide companies a chance to raise capital. Many startups want to avoid taking out business loans, and they turn to securities for this possibility. Debt and equity securities are popular because of the benefits they provide.

Investors are attracted to debt securities because they provide a stream of payments at a specified interest rate payable at a certain date, regardless of how a company is doing and, further, may be secured by company assets to protect against a default. However, your upside is limited by not sharing in the company’s value appreciation. Equity securities are also appealing because investors share in the upside of the company, receive distribution of profits, get voting rights on important business matter, and the chance to see large profits if the stocks, bonds, or other assets do well. On the other hand, if the company goes under, equity securities share in the proceeds of any asset sale after the debt securities are paid off.

Securities are easy to trade, which makes the economy as a whole more efficient. It also makes determining which businesses are doing well easier. For example, you can tell a business may be in financial trouble if the value of its stock is going down.

How Tax ID Numbers Relate to Securities Transactions

In the securities industry, a company’s tax ID number (EIN) is essential for maintaining accurate reporting and regulatory compliance. When companies issue securities—such as stocks or bonds—their EIN is used in filings with the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS) for tax documentation.

For investors, an EIN serves as a way to:

  • Verify that the issuer is properly registered and in good standing.
  • Confirm that the entity is legitimate before engaging in investment activity.
  • Facilitate tax reporting for dividend income, capital gains, or interest from securities.

Financial institutions also use EINs to report payments and withholdings to the IRS. Without accurate tax ID information, companies could face penalties or delays in securities registration.

Reasons to Consider Not Using Securities

Debt Securities

  • Companies can go in debt if unable to make interest payments.
  • Having too much debt can scare away potential investors.

Equity Securities

  • Shareholders will have some form of control over the company.
  • You may be more worried about making shareholders happy in the short term instead of considering the company's long-term success.

Reasons to Consider Using Securities

Debt Securities

  • Ownership isn't diluted like it is when issuing shares.
  • Investor has no right to the company's profits.

Equity Securities

  • You avoid taking on any debt.
  • Paying dividends is not required.

Legal and Privacy Considerations in Tax ID Lookups

While performing a tax ID number lookup is legal for public and legitimate business purposes, it must be done with attention to privacy regulations. The IRS restricts unauthorized disclosure of EINs for private companies, and individuals should avoid using or sharing this information without consent.

To ensure compliance:

  • Use only official government databases or authorized verification services.
  • Avoid any lookup services that require payment for unverifiable or unofficial data.
  • Do not use EINs for fraudulent or identity-theft-related purposes.

If you’re uncertain whether you can access or use a company’s EIN for a transaction involving securities, consider consulting a business attorney. You can find and connect with experienced attorneys on UpCounsel who specialize in corporate compliance and securities law.

Frequently Asked Questions

  1. What is a tax ID number lookup?
    A tax ID number lookup is the process of finding or verifying a company’s Employer Identification Number (EIN) for tax, banking, or compliance purposes.
  2. Can I find any company’s EIN online?
    Public companies list their EINs in SEC filings, but private companies’ EINs are not generally public unless disclosed in business filings or nonprofit registries.
  3. Why is an EIN important for securities?
    An EIN identifies a company in official tax and securities filings, ensuring that transactions are traceable and compliant with federal and state regulations.
  4. Is it legal to search for a company’s tax ID?
    Yes, it’s legal when done for legitimate reasons, such as investment verification or due diligence, but unauthorized disclosure or misuse is prohibited.
  5. Where can I find professional help with securities compliance?
    You can find experienced securities and business attorneys on UpCounsel, who can help you with EIN-related filings, securities registration, and tax compliance.

If you need help with tax id number lookup, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.