What Is The Difference Between A TIN And An EIN?
If you’re starting a new business, then you probably already know that you are going to be creating a separate entity from yourself. Unless you’re starting a sole proprietorship that will be tied to your social security number, you will have to apply for a new federal tax ID number for your business. This is what’s known as an employer ID number, or EIN. If you’ve filed taxes in the past, however, then you have probably seen the acronym TIN before. So, is there a difference between TIN and EIN?
What is a TIN?
To put it simply, this is a term that the IRS uses to identify tax numbers for individuals and businesses alike. Overall, this is a catch-all acronym that stands for tax ID number, meaning that it can refer to either something like your social security number or a company’s EIN.
What is an EIN?
As we mentioned, this is known as an employer ID number, and it is what you use to file taxes for your business. It’s also necessary if you plan on hiring employees as well. This is simply a number that the IRS uses to identify your business so that they can properly file all of the necessary tax documents.
How do I get an EIN?
The process for obtaining this number is relatively simple, as all you have to do is fill out paperwork and submit it to the IRS. You can either send it directly through the agency’s website, or you can use a third-party site to handle the process for you.
How to Check EIN Status
Fortunately, you won’t have to wait long after submitting your documents to get your employer ID number. In many cases, it can take as little as a few hours. You can check on its status either online through the IRS or a third-party website, or you can call the IRS directly.
Overall, there is no technical difference between a TIN and an EIN as they are both the same thing. That being said, TIN refers to any tax ID number, whereas an EIN number is only for companies.