What is the Difference Between EIN and TIN?

The main difference between an Employer Identification Number (EIN) and a Taxpayer Identification Number (TIN) is that an EIN is used to identify business entities, while a TIN is used to identify individuals for tax purposes. Here are the key differences and similarities between EIN and TIN:

• Similarities: Both EIN and TIN are nine-digit numbers used by the IRS to identify taxpayers.
• Differences:

1. EIN is used to identify business entities such as LLCs, corporations, and partnerships.
2. TIN is used to identify individuals who can be taxed within the United States.
3. An EIN is a type of TIN, but not vice versa.
4. TIN can be assigned immediately, while an EIN requires time for state guidelines to be checked before being issued.

To obtain a TIN or an EIN, you need to follow different procedures. For a TIN, you need to apply for a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or an Employer Identification Number (EIN). On the other hand, to obtain an EIN, you can apply online, by fax, or by mail.

Comparative Table: EIN vs TIN

Here is a table comparing the differences between Employer Identification Numbers (EINs) and Taxpayer Identification Numbers (TINs):

EINs and TINs are both used for tax identification purposes, but they serve different users. EINs are designated for businesses and employers, while TINs are used for personal tax purposes.