What Is an EIN Number? A Complete Guide

This number is used to track the business’s compliance with federal, state, and local regulations. A business can begin to establish its own credit profile through an EIN. This separate credit history is beneficial for obtaining business loans, credit cards, and other financing without affecting the owner’s personal credit. If you can’t apply online, find out how to apply by phone, fax or mail.

How do I get a TIN?

Once approved, the IRS will Partnership Accounting issue the EIN, which should be used for all tax-related correspondence and filings. An employer identification number (EIN) is a nine-digit number assigned by the IRS. It’s used to identify the tax accounts of employers and certain others who have no employees.

• This separation reduces the risk of identity theft, as the EIN is specifically meant for business-related activities.
• Some sole proprietors get an EIN to protect the privacy of their personal Social Security Number and identifying information.
• Form W-7(SP), Solicitud de Número de Identificación Personal del Contribuyente del Servicio de Impuestos Internos is available for use by Spanish speakers.
• Check with your state’s business regulatory agency or Department of Revenue for specific requirements.
• However, it’s always best to do your research first to ensure your setup for success.
• The quickest and simplest way for taxpayers to get an EIN is to apply online via the IRS website, using the EIN Assistant.

Employee Identification Number vs. Taxpayer Identification Number (TIN)

The first two digits of your EIN show the IRS campus that assigned it or if you applied online. A nominee who applies for an EIN puts the entity’s information and privacy at risk. Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them.

Taxpayer Identification Number (TIN)

An Employee Identification Number, or EIN, is a number given by the IRS to distinguish businesses from one another. Businesses that offer ein number meaning health insurance to their employees will need an EIN to facilitate this process with insurance companies and government health plans. Securing an EIN is a necessary step to establishing your business and will ultimately help in keeping your regulatory, legal and financial matters in order.

• This limitation is applicable to all requests for EINs, whether online, by telephone, fax or mail.
• Every business needs an employer identification number to report taxes.
• Without an EIN, you can’t run payroll, pay taxes, or even open a business bank account.
• You don’t need an EIN if you’re self-employed; you can simply use your Social Security number (SSN).
• To obtain an ITIN, you must complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number.
• As for the business EIN, IRS will need this number for tracking the employee payroll taxes.

Taxpayer identification numbers (TIN)

Other small business owners apply for Online Accounting an EIN because their bank requires it. If you get an EIN when you start your business, you’ll be prepared for the day when you have employees or partners. And an EIN can make a sole proprietorship appear more professional and credible.