Starting a business requires understanding obligations to various governmental bodies. Compliance begins with establishing the business’s identity for agencies that track activities and collect taxes. A Customer Identification Number (CID) provides a standardized tracking mechanism for a business entity within a specific jurisdiction. This unique reference is assigned by certain state and local authorities to manage their administrative relationship with the company.
Defining the Customer Identification Number (CID)
The CID, or Customer Identification Number, is an internal tracking code used by specific government agencies. It is a unique number assigned to a business entity when it registers its legal structure with the state, often through the Secretary of State’s office. The CID acts as the business entity’s official record identifier at the state level, distinguishing it from other companies.
The CID is a regional or state-specific identifier, not a federal number. While the format and naming convention can vary—sometimes called a Company ID or Registration Number—its function remains consistent. This number allows the issuing authority to manage documents, track compliance filings, and reference the business’s foundational legal paperwork.
Where CID Numbers Are Used
CID numbers are used in governmental contexts where a business must register or obtain authorization to operate. The number is primarily used by state-level departments responsible for corporate registration, taxation, and labor regulation. Businesses often use the CID when interacting with the state revenue department or the state’s unemployment or labor department.
The assignment of a CID is triggered by the activities a business intends to engage in within that state. Registering the business entity with the Secretary of State is the first step. The CID is also used when applying for specific permits, such as a sales tax permit, registering as an employer, or applying for professional licenses. The CID helps state agencies accurately link compliance activities back to the correct legal entity.
CID vs. Other Business Identifiers
A CID is one of several identification numbers a business must manage, and it is distinct from the federal Employer Identification Number (EIN). The EIN is a nine-digit federal tax ID issued by the Internal Revenue Service (IRS). It is required for federal tax reporting, hiring employees, and opening a business bank account. While the CID is issued by a state agency for entity tracking, the EIN is a national number used for federal tax compliance.
Many states also require a separate State Tax ID number, often issued by the state’s Department of Revenue. This State Tax ID is mandatory for state-level tax obligations, such as collecting state sales tax or withholding state income tax. While the CID is the company’s foundational corporate identifier, the EIN and State Tax ID focus on specific financial and tax reporting functions. Sole proprietors may use their Social Security Number (SSN) in place of an EIN for federal purposes, but they still need the state-level CID if the business registers as a separate entity.
The Process of Obtaining Your CID
Obtaining a CID does not involve a direct application for the number itself. The CID is automatically generated and assigned by the relevant state agency when a business completes its initial registration. This registration often involves filing formation documents for a corporation or LLC with the Secretary of State. The CID is the result of successful registration, not a separate application step.
When registering with a state’s Department of Revenue for tax purposes, an account ID number is often issued simultaneously. This account ID may function as the state’s version of a CID for tax purposes. Official notification of the assigned ID number is typically delivered via physical mail within a few business days or weeks. Some states now issue a digital Certificate of Registration that includes the ID number, which can be printed from an online portal.
Critical Compliance Functions of the CID
The CID, or the account number derived from it, is mandatory for ensuring ongoing compliance with state regulations. This number must be included on specific state tax returns, such as those for sales tax, excise tax, and corporate income tax. Without the correct CID, the state agency cannot properly credit the filing or payment to the correct legal entity, potentially resulting in processing delays.
The CID is also required for reporting employee wages to the state’s labor and unemployment insurance departments. This ensures that withheld wages and associated taxes are correctly tracked and applied to the business’s state account. Any official communication with the issuing governmental department, including account status updates or compliance audits, must include the CID to facilitate accurate record retrieval.
Managing and Protecting Your CID Information
Treating the CID as sensitive information is a necessary best practice, similar to handling the federal EIN. Maintaining an accurate record of which state and local agencies issued which specific CID or account number is important, especially for businesses operating across multiple jurisdictions. Securely storing this information helps prevent unauthorized access and fraudulent activities.
Failure to use the correct CID on a filing can lead to significant administrative complications. Incorrectly reporting the number can cause payments to be misapplied or tax returns to be rejected, potentially resulting in late filing penalties or audit notices. Businesses should always verify the CID against official state documentation before submitting required forms.