Is There a Difference between an EIN and TIN?


In the USA, you have to meet your tax obligations by EIN application or TIN. For this reason, you need to obtain the taxpayer identification number. By the way, one thing you need to know is that there are different taxpayer identification numbers. In this content, you can find information on taxpayer identification numbers for individuals and companies. 

EIN Application

There is a law passed by the IRS in 1974. According to this law, all businesses in the USA are required to have an EIN number. Thus, these businesses demonstrate that they are eligible to employ workers and pay business taxes.  EIN application is mandatory for a business. Thus, the business; establishing a company, forming a partnership, LLC can be done in the USA. EIN is similar to SSN but is used by businesses rather than individuals. Thus, it can be used by EIN holders, companies, foundations, partnerships and even government agencies.

If you want to establish a company in the USA, you must first register your company. You must then apply to the International Revenue Service (IRS) to obtain an EIN number. There are different ways to apply, such as e-mail, fax and regular mail. First of all, you need to fill out a form called SS-4 for EIN application.

ITIN Application

A nine-digit ITIN number beginning with ‘9’ is required for some USA tax purposes. These persons can be resident or non-resident foreign. It is also an identification number used for the spouses of these people and their relatives in need of care who cannot obtain a social security number (SSN).

Form W-7 has to be completed to obtain an ITIN number from the IRS.  An individual must have legal foreign status in order ITIN application and submit the required documents. These individuals are required to submit documents confirming their identity to the IRS. Documents for this can be handed over to the IRS offices in person. Or it can be mailed to the address specified on the W-7 form. Finally, individuals can process application documents through agencies authorized by the IRS.

EIN is for Businesses, ITIN is for Individuals

Let’s talk about the general differences between EIN and TIN below:

  • TIN numbers are used to identify people when filing taxes.
  • There are many different identification numbers issued by the IRS.  The EIN obtained by EIN application is one of them. In the USA, the EIN is referred to as the ’employer identification number’. It is also required by a business employing workers.
  • EIN or SSN are basically different names for the same tax identification purpose. Here TIN is the generic name and the commonly used ITIN number for individuals.
  • Finally, EIN is for businesses, ITIN is for individuals.

What does TIN Mean?

The most practical way to identify taxpayers across the United States is to provide individuals with unique identification numbers. This unique number is called a ‘Taxpayer Identification Number’ in the USA. Depending to EIN application we can say this: In this country, both the IRS and ordinary people call the number given to individuals a TIN. 

A TIN number can be an individual tax identification number called an ITIN, or simply an individual’s social security number. It can also be an employer identification number called an EIN. Thus, the individual can use any of the various identification numbers issued by the IRS and the social security administration.

Experienced Consulting Firm

One thing you should know is that tax obligations in the USA vary at the state and local level. Obtaining the required tax identification number is possible with an online application. But ensuring your proper tax status is not easy.

 At this point, it is important to get support from a team that has knowledge and experience in the implementation of tax laws. In other words, you can get help with tax procedures from an experienced consulting firm. If you have any questions about EIN application or TIN, you can find your answers by reading this and similar content.