EIN vs TIN – What is the Difference?

Identification numbers used for tax purposes can be cumbersome to use. This is especially true in the United States, where different types of numbers are used to identify businesses. Some numbers can be used interchangeably, while others must be used for strictly defined purposes. Improperly used identification numbers can draw the attention of the US tax authority, the Internal Revenue Service. To avoid the unpleasant consequences of lack of knowledge, it is worth taking a closer look at this topic, especially the differences between EIN vs TIN numbers.

Multiple identification numbers in the US

There are a number of taxpayer identification numbers used in the United States. TIN refers to the taxpayer identification number assigned by the Social Security Administration or the Internal Revenue Service. It defines a whole set of tax identification numbers that apply to tax returns and other tax return-related documents. Different TINs can be used for specific purposes. One important TIN is the EIN, which can be most simply described as a business social security number. It is known by many names, including Federal Tax Identification Number or Federal Employer Identification Number.

Use of the EIN identification number

The EIN identification number is used when filing tax returns, opening business bank accounts, applying for various types of licenses, and opening merchant accounts. The EIN is intended for companies, but not all are required to have one. Companies that do not have any employees can file tax returns using an SSN, or Social Security Number. This is a social security number consisting of nine digits. It applies primarily to sole traders, as well as limited liability companies (LLCs). The possibility of using the EIN, on the other hand, applies to employers, trusts, partnerships, non-profit organizations, corporations and government agencies.

Several methods of obtaining EIN number

There are several ways to apply for the EIN number. One is to fill out a form marked SS-4 and send it via fax. In this way, the EIN number can be obtained within four to five days. The second method is to apply using the Internal Revenue Service website. This is a quick way, which additionally allows you to check for errors and make sure that all the required information has been submitted. In this case, the EIN is assigned within one or two days. Another way to contact by phone, but this requires filling out the Third Party Designee field on the SS-4 form. The last way is to apply by mail, but this is the slowest way, which involves sending the number to the physical address provided on the registration form.

Services of the tax advisory office

In any case, the information provided to state authorities must be complete and up-to-date. Otherwise, we expose ourselves to the consequences in the form of the possibility of a penalty or other additional fee. Therefore, it is advisable to use the services of specialized tax consulting firms. One of them is the INTERTAX office, which offers comprehensive solutions for anyone interested in doing business in the US. For more information on applicable identification numbers, including a discussion of the differences between EIN vs TIN, visit polishtax.com. Cooperation with INTERTAX is a guarantee of the effectiveness of the actions taken and flexible service, tailored to the individual needs of the client. In this way, you can conduct business in the U.S. without worry and focus on developing the services you provide.