What is the Difference Between a TIN and EIN?

Starting up a business can be a daunting task if you are not quite sure with how to go about the process. One common area of concern is the TIN and EIN. The numbers may look complicated but they are there to make sure that you have a smooth transaction. Before you decide to apply for EIN online, it is best for you to differentiate it first with TIN.


They’re More than Just Numbers


TIN refers to the tax identification number while EIN is the employer identification number. They contain nine digits and are being assigned by the Internal Revenue Service (IRS). The IRS utilizes the number to determine the taxpayers required to file different sorts of business tax returns.


The TIN / EIN is being used by sole proprietors, partnerships, corporations, estates, trusts, nonprofit organizations, government agencies, and all other business entities.


Not Quite the Same


While some may use TIN and EIN interchangeably, they are actually not the same. TIN is a broader spectrum as there are five different types of TINs. They include the EINs, ITINs (Individual Taxpayer Identification Numbers), SSNs (Social Security Numbers), PTINs (Preparer Tax Identification Numbers), and ATINs (Taxpayer Identification Numbers for Pending U.S. Adoptions.


These can be secured by simply filling out the corresponding forms. Gov Doc Filing can easily help you out in securing the TIN.


EIN, on the other hand, is a type of TIN. It is assigned only to business entities and not to individuals. The EIN helps in identifying the business as a separate entity when it comes to tax-related matters.


This is also the appropriate TIN to be secured in the event the trusts and estates generate income from their financial interests. The revenues must be reported using Form 104 or the U.S. Income Tax Return for Estates and Trust.


Ready to apply for an EIN online? Seek the assistance of Gov Doc Filing today.


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