In order to reach a clear conclusion about TIN vs EIN, it is necessary to understand and know both terms fully. These identity numbers provided by the United States are defined as accounts that individuals should use after they are involved in the tax system. In short, the people who will carry out commercial activities and earn an income within the scope of the United States must have these numbers.
We wanted to compile what you need to know about TIN vs EIN. You can make a more straightforward decision on which number you should apply for before starting commercial activities. You can make all your applications with us by taking advantage of our EIN number online services.
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TIN vs EIN: What Is EIN Number?
We wanted to take a closer look at both grips to reach a clear opinion about the TIN vs EIN difference. EIN is a nine-digit number given by IRS to people with a company in the USA. EIN, the abbreviated version of the Federal Employer Tax ID Number, also enables the control of whether the companies are carried out in accordance with tax law. In addition, thanks to EIN, a bank account can be opened on behalf of the company or a credit request can be made. In the same way, this number is needed to get new employees to the company.
If we summarize the information about EIN, this number is a kind of SSN. Namely, EIN, which can be a Social Security Number of the company, is the number that every enterprise carries out commercial activities in the United States.
How to Make 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.
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.
TIN vs EIN: What Is TIN Number?
To give the correct answers to the question of “do I Need Tin vs EIN”, you need to have information about the TIN. TIN is a kind of identity number given to non-US citizens. This timbre provided by IRS is the abbreviated version of the Individual Taxpayer Identification Number. Just like EIN, some documents-write a nine-digit number as ITIN.
TIN Number is an identification number given to individuals and is completely personalized. Anyone with taxpayers within the scope of the United States must receive this number. The people who need to take numbers are as follows:
- Those who do not have Social Security Number and cannot get SSN should apply for ITIN if they are taxpayers in the USA.
- Those who do not reside in the USA but will apply for tax refunds should also receive an ITIN number.
- It is also essential that people who have received a temporary residence permit applications for the TIN number.
- People who have migrated to the USA and are applying for a tax refund should apply for a TIN Number for both themselves and their family members.
What does TIN Mean for TIN vs EIN?
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.
TIN vs EIN: What’s the Difference?
If you have more or less knowledge about ITIN and EINs, we can now discuss the differences between these two concepts.
EIN is usually an identification number given to companies. In other words, if you are connected to a company in the USA or have a direct workplace, you should apply for EIN. To carry out the tax transactions of your company and to open a bank account on behalf of your company, you must make this application. Moreover, you are definitely expected to have an EIN number to get a new employee to your company.
ITIN number is an individual number given personalized. In other words, in order to carry out tax-related transactions in the USA, individuals must take IT. In particular, people who do not have SSNs should apply for an ITIN number.
In some cases, you can use ITIN instead of EIN. However, EIN does not replace ITIN in any way. While EIN is only an identification number that defines the company, ITIN represents the individual. Let’s detailed the TIN vs EIN differences.
TIN vs EIN: Detailed Focus
You can contact us immediately if you want to apply for ITIN or EIN. As ein-itin.com, we can always support you with applications to IRS. By applying online through us, you can follow the process from the country where you reside. Thanks to us, you can make all the ITIN and EIN applications by taking the proper steps and ensuring that the application is concluded without any problems.
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 for talking about TIN vs EIN.
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.
