EIN and Tax ID-

To start a new business employer identification number which is very important to have a different is actually you need EIN. Along with this will talk about the tax ID number and EIN. How these differ from each other. More than this, there is a technical difference between an employer ID and a tax ID number. The employer identification number is a unique number is issued by the IRS.

As an employer identification number and does have 9 digits. , the employee identification number helps to identify your business entity and if you change your business entity then definitely or an employer and will be changed. If you are having already the SSN number and your work or business is within the criteria of having no employees, you don’t need EIN. The EIN number is strictly a federal number. Though, you may ask for EIN. Get the further information in the given article till the end.

To apply for an EIN, you should first get the SS4 form or its PDF. Just fill up all the mandatory details regarding your business whatever SS4 form will require from your side. Make sure, you are getting it on the right portal of the IRS. Furthermore, you may also apply to set up your EIN through mail or fax. In case, if you are an international applicant then you may apply by calling to set up your EIN s well. 


For your better knowledge, firstly you should know about that what is exactly the EIN number and what is the urgency to have it. As well as there may be many mandatory things you will be needed to run your business. For startup your business and organization, one thing need to obtain the business holder is only to get the EIN which is Employer Identification Number. This is the unique no. and a nine-digit no. which you will be needed to run your business as well. If you don’t have it, you may be getting a lot of cross-questioning or queries from the govt. Agencies. 

EIN number never expires. It is not issue again to another party. Here get the information when you need a EIN.

  • In the case of a sole proprietor and need more employees in his business
  • To open a business bank account you need an EIN number
  • For opening a business line of credit you will require EIN
  • Also in the case of a partnership, LLC, Pension plan you need EIN
  • For creating trust, it is required       

Tax ID-

For defining the tax id, it is Taxpayer Identification Number (TIN). The tax id works in both cases as in federal and state applications. It is issued by IRS.

  1. If you are up to open a personal bank account.
  2. Moreover, if you are hired as an employee.
  3. applying for a passport.
  4. applying for a federal student loan.
  5. In addition to this, if you are applying for Medicare and social security benefits.
  6. If you are applying for public assistance
  7. Also, you can check your credit rating.

You need some important documents when applying for a tax id. Get here the list of the documents needed. TIN is a unique identification number that helps you to keep your transaction records easily. This is also called TIN in short which means Taxpayer Identification number. To get a Tax ID number, you need to be aware of documents needed for applying TIN and other related information.

  1. Your Id proof
  2. Address proof
  3. PAN card of proprietor with 4 to 6 passport size photos
  4. Business premises’ address proof 
  5. Reference and security as well as surety needed
  6. The purchase invoice and copy of LR/GR and Payment 
  7. The collection proof with the bank statement is required.

How to request for EIN?

  • Just go to the IRS website and click on the employee ID number.  For the first thing, they must have a valid taxpayer identification number or social security number in order to use the online application form.
  • There is the authority for the taxpayers who are applying online to have to view print and save the assignment notice at the end of the session.
  • Apply for having our EIN online by going through the portal of IRS.
  • Further, apply to get EIN by fax and mail. No need to get EIN for sole proprietors who are having SSN number and doesn’t have employees.
  •  Non us residents you don’t have any legal residents or a principal place of business so you can’t use the online application to obtain your employer identification number.

Various requirements to have EIN number-

There are various and worthy requirement conditions for what you should apply to get EIN. So, go through the needs on the priority when you need an EIN number-

  • When you are into the business and wants to expand the business by getting business loans.
  • In case of filing for tax returns you need Employment Identification number on the priority basis.
  • When you are up to the stage of hiring employees to your business.
  • Also, when you are changing your entity as from sole proprietor to corporation as well, you need EIN.

Therefore, these are few cases when a business owner needs to be with the EIN number. Without EIN you can not run your business. Apart from this, in the below context you will come to know tat EIN and Tax ID are same or not. Find the answer till end here.

Is EIN and Tax ID are similar?

As EIN which is Employer identification number is always federal and uses for federal purposes. There is a difference that we are going to tell you regarding the EIN and tax ID. When an EIN number uses for the things or when a tax id. For filing business taxes and hiring employees you need an EIN for federal purpose.

Along with this, in the scenario of having the tax id for state level purpose like you need it for sales, local permits. Obviously, you need a stat tax ID for the state level. There EIN will not required. Overall, if say so a Tax ID can be considered as state tax ID or a federal Tax ID respectively.