Overview

Here’s the short answer to EIN vs TIN. A TIN is any taxpayer identification number the IRS uses to track taxpayers. An EIN is one specific type of TIN used to identify businesses and certain trusts/estates.

If you operate through an entity (LLC with multiple members, corporation, partnership, nonprofit), you almost certainly need an EIN. You also need one if you plan to hire employees, open a business bank account, or issue payroll.

Getting an EIN is fast and free directly from the IRS. Most U.S.-based applicants receive it immediately online.

Knowing which number to use also prevents costly errors. Payers must withhold 24% if a payee doesn’t furnish a correct TIN. We’ll cover decisions, timelines, penalties, and the next steps to stay compliant.

TIN and EIN basics: how they relate

A Taxpayer Identification Number (TIN) is the umbrella term for numbers the IRS uses to identify taxpayers. An Employer Identification Number (EIN) is one subtype of TIN used by businesses, estates, and certain trusts.

The other common TINs are Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), Adoption Taxpayer Identification Number (ATIN), and Preparer Tax Identification Number (PTIN). See the IRS overview of Taxpayer Identification Numbers (TIN) for definitions.

In practice: individuals file under SSNs. Nonresident individuals without SSNs may use ITINs. Adopting parents use ATINs temporarily. Paid return preparers use PTINs. Businesses, trusts, and estates use EINs.

When people search “difference between EIN and TIN” or “Tax ID vs EIN,” they’re really asking whether they need a general taxpayer number or the business-specific one. If you’re forming or operating a business entity or paying others, the EIN is the TIN that unlocks banking, payroll, and compliance workflows.

Who needs which number

The right number depends on your business structure and the activities you’ll perform. Entities need EINs.

Some sole proprietors can use SSNs but often benefit from an EIN for privacy, banking, and platform onboarding. If you’ll hire employees, open a payroll account, or file certain returns, an EIN is required.

Beyond entity type, consider what external partners require. Banks, merchant processors, marketplaces, and larger customers may request an EIN, even from sole proprietors, to streamline Know Your Customer (KYC) and vendor onboarding.

As you evaluate your setup, plan for what you’ll need in the next 6–12 months, not just today.

Sole proprietors and single-member LLCs

A sole proprietor or a disregarded single-member LLC can often file taxes under an SSN. An EIN is still smart for privacy and operations.

Using an EIN on Form W‑9 lets you avoid sharing your SSN broadly with payers and procurement teams. That reduces identity exposure. Many banks, payment processors, and platforms prefer or require an EIN to open business accounts or enable payouts.

Getting an EIN does not change how your sole proprietorship or disregarded LLC is taxed. It’s still reported on your personal return unless you elect a different classification.

If you start payroll, open a retirement plan for employees, or issue excise or employment tax returns, you’ll need an EIN. Think of the EIN as your business-facing identifier, even when your tax reporting is still on Schedule C.

Partnerships, corporations, and multi-member LLCs

Partnerships, corporations (C or S), and multi-member LLCs need an EIN from day one. You’ll use it to file business returns, open bank accounts, run payroll, and issue information returns to contractors.

If a multi-member LLC elects corporate or S corporation taxation, the EIN remains your anchor identifier for filings and payroll.

Adding or removing owners typically triggers new filing obligations and sometimes a new EIN, especially when an entity’s structure changes substantially. These entities often deal with 1099 reporting and payer verification, so having an EIN avoids bottlenecks with vendors and financial institutions.

Plan to obtain the EIN before signing leases or opening accounts to keep onboarding smooth.

Nonprofits, trusts, and estates

Nonprofit organizations, charitable trusts, and most estates require EINs to open bank accounts, receive donations or distributions, and file returns. The EIN serves as the public identifier for nonprofits on donation receipts and informational filings.

Fiduciaries for trusts and estates also use the EIN for reporting income and withholdings as needed.

If you’re applying for tax-exempt status, your EIN is a prerequisite for your application and subsequent filings. Align your EIN application name and address with your organizing documents to prevent downstream mismatches and notices.

This consistency reduces delays with grantors, payment processors, and state charity registrations.

Contractors and payers

Independent contractors can furnish either an SSN or an EIN on Form W‑9. Many choose an EIN to protect their SSN.

Payers are expected to request a W‑9 before payment and verify the name/TIN combination. They often do so through internal controls or IRS TIN matching tools.

If the payee fails to provide a correct TIN, payers must impose backup withholding at 24%.

Using an EIN doesn’t change a contractor’s tax rate. It simply changes the identifier used.

For payers, consistent W‑9 collection, TIN verification, and secure storage prevent CP2100 mismatch notices and withholding exposure. Build these checkpoints into vendor onboarding and annual 1099 processes.

Cost and processing times for getting an EIN

An EIN is free when you apply directly with the IRS. Avoid third‑party services that charge fees for the same process.

For most U.S.-based businesses, the IRS issues an EIN online immediately after you complete the application. Alternatives like fax or mail are available if you’re not eligible for the online tool, but they take longer.

The IRS is the only issuing authority for EINs. State agencies do not issue federal EINs.

If a website proposes to “sell” or “expedite” an EIN, you’re paying for convenience rather than a faster federal process. Start with the official portal to save time and avoid errors using the IRS guide to Apply for an EIN Online.

Online, fax, and mail

For eligible U.S.-based applicants, the online method yields an EIN immediately. It also provides a confirmation notice you can download for your records.

If you apply by fax with a completed Form SS‑4 and a return fax number, processing is typically faster than mail but not instant. Mail-in applications can take several weeks, so use this only if online or fax isn’t feasible.

Your eligibility for the online application depends on business location and responsible party details. The IRS notes that online issuance is immediate, while fax and mail take longer (“weeks”) to process.

Plan your bank and payroll timelines accordingly and apply early. If timing is critical, gather all SS‑4 inputs in advance to avoid rejections and repeat submissions.

International applicants by phone

If your business has no legal residence or principal place of business in the U.S., you generally cannot use the online application. Instead, international applicants can obtain an EIN by phone from the IRS after providing the details from Form SS‑4.

The agent will assign the EIN at the end of the call if your information is complete and consistent.

You’ll need the responsible party’s information even if they don’t have a U.S. SSN or ITIN. Foreign founders are still eligible.

Prepare your legal name, address, entity type, reason for applying, and ownership details before calling. Retain the confirmation for banking and onboarding.

The IRS explains eligibility and the phone process for non‑U.S. founders at International Applicants for EIN.

Using an EIN for privacy and Form W-9

Using an EIN instead of your SSN on Form W‑9 reduces the amount of sensitive personal information you share. For sole proprietors and single‑member LLCs, this simple change helps protect against identity theft during vendor onboarding and accounts payable processes.

It also looks consistent to banks, marketplaces, and enterprise customers who expect a business identifier.

Make sure the legal name on your W‑9 matches IRS records for the EIN to avoid mismatches. Payers often use IRS TIN matching tools to confirm the name/TIN combination before issuing 1099s, so name control alignment matters.

Once you adopt an EIN, use it consistently on contracts, W‑9s, and invoices to avoid reconciliation issues.

Federal EIN vs state tax IDs

Your federal EIN identifies you to the IRS, but most businesses also need one or more state tax IDs. States issue separate registrations for sales and use tax, employer withholding, and unemployment insurance. These are distinct from your federal EIN.

Many compliance tasks require both, especially if you have employees or collect sales tax.

As you expand into additional states, you’ll likely need registrations in each new jurisdiction. The U.S. Small Business Administration provides a helpful overview at Get Federal and State Tax ID Numbers.

Align your legal name and addresses across federal and state registrations to reduce notices and lockbox delays.

Responsible party rules and foreign founders without an SSN

The IRS requires a “responsible party” on Form SS‑4. This is generally the individual who ultimately owns or controls the entity.

For U.S. online applications, the responsible party typically needs an SSN or ITIN. International applicants can apply by phone without one.

In all cases, the responsible party should be a real person, not a nominee or shell.

Have your SS‑4 details ready to avoid delays. You’ll need: legal name and DBA (if any), mailing and street address, entity type, reason for applying, date the business started, principal activity, expected number of employees (if any), and the responsible party’s name and taxpayer ID (if applicable).

Foreign founders should keep formation documents and identification nearby in case the IRS agent requests clarification during the international phone process.

When you need a new EIN (and when you don’t)

You don’t get a new EIN for routine changes like business address updates or a new DBA. You usually do need a new EIN when your business’s ownership or structure changes. Examples include a sole proprietorship taking on a partner (becoming a partnership) or incorporating.

Corporate reorganizations, mergers, and certain trust conversions can also trigger new EIN requirements.

For LLCs, whether a new EIN is required depends on changes in ownership and tax classification. For example, a single‑member LLC adding a second member becomes a partnership for tax purposes and may need a new EIN.

Review the IRS guide at Do You Need a New EIN? before you change structure. That way bank accounts, payroll, and vendor records stay aligned.

Finding, verifying, or replacing an EIN

If you’ve misplaced your EIN, first check prior IRS correspondence, bank account opening documents, payroll records, or filed returns. Your accountant or payroll provider may also have it on file.

If needed, you can request an IRS verification letter (Letter 147C) to confirm the number for banks and payers.

For payers and procurement teams, verification is as important as collection. Build a workflow that captures W‑9s, checks the name/TIN combination, and stores the documents securely for audit and CP2100 responses.

A little discipline at onboarding time prevents year‑end 1099 scrambles and backup withholding exposures.

Lost EIN and replacement options

Start with internal records and prior filings. Many systems require the EIN at setup, so it appears on confirmations and portals.

If you can’t locate it, contact the IRS Business & Specialty Tax function and request Letter 147C to confirm the number tied to your legal name and address. Keep the letter with your formation documents and banking records for future requests.

If your entity changed names or addresses, update the IRS before requesting confirmations to ensure records match. When you share your EIN externally, use secure channels and limit exposure to what’s necessary.

Consistent documentation helps you pass vendor due diligence and avoid repetitive requests.

Vendor verification workflows

Collect a completed Form W‑9 from each payee before payment, and validate the name/TIN combination. Payers can use the IRS’s TIN matching service to reduce mismatches and avoid CP2100/B‑notice cycles. Learn more about TIN Matching for Payers.

Store W‑9s and verification evidence with vendor master records to support 1099 filings. If a name/TIN mismatch occurs, promptly send a B‑notice, solicit an updated W‑9, and apply backup withholding if required.

Update the vendor profile only after verification to prevent repeated mismatches. These steps protect you from penalties and reduce friction with suppliers.

Acronyms and edge cases: FEIN, Federal Tax ID, and FTIN on W-8 forms

FEIN and Federal Tax ID are informal synonyms for EIN. They all refer to the same IRS‑issued business identifier.

You may see “Tax ID vs EIN” in forms and bank portals, but for U.S. entities, the federal business identifier is the EIN. Use the exact legal name associated with your EIN to avoid mismatches during onboarding.

FTIN stands for “Foreign Tax Identifying Number” and appears on non‑U.S. withholding forms like W‑8BEN (individuals) and W‑8BEN‑E (entities). Non‑U.S. payees provide their FTIN from their home country to claim treaty benefits. U.S. payees use SSNs or EINs instead.

U.S. payers report cross‑border payments on Form 1042‑S where applicable. This is distinct from domestic 1099 reporting.

Banking and compliance checks tied to your EIN

Banks and payment processors use your EIN during KYC to verify identity, ownership, and risk before opening accounts. Expect to provide formation documents, operating agreements, and W‑9s that match the IRS name control for your EIN.

Merchant accounts and marketplaces run similar checks to combat fraud and ensure tax reporting.

Most corporations, LLCs, and similar entities must also report their beneficial owners to FinCEN under the new BOI rules. This is separate from IRS registration.

Review who qualifies as an owner or controller and set a calendar for initial and updated filings. Learn more at Beneficial Ownership Information Reporting.

Post‑EIN checklist: what to do next

Once you have an EIN, lock in the key accounts and registrations that keep operations compliant. Start with banking and payments, then add payroll and payer registrations so you’re ready for both employees and contractors.

A few early moves also help establish business credit and vendor credibility.

These steps align your records across customers, vendors, banks, and tax agencies. Consistency on name, address, and EIN prevents mismatches and speeds up approvals.

Revisit your registrations if you change structure or expand to new states.

Penalties, mismatches, and how to fix them

If a payee fails to furnish a correct TIN, payers must apply backup withholding at a flat 24% until the issue is corrected. The IRS notifies payers of name/TIN mismatches via CP2100/CP2100A notices. These trigger specific “B‑notice” steps to solicit correct information.

Ignoring these notices can lead to penalties and additional withholding obligations.

To fix mismatches, solicit a new W‑9, validate via TIN matching, and issue corrected 1099s if needed. Keep documentation of your solicitations and verification for audit support.

Review the IRS primer on Backup Withholding (24%) and build the response playbook into your AP and compliance workflows.

Closing an EIN and dissolving an entity

Closing your business requires both state dissolution and federal account closure. File final federal and state returns, pay outstanding balances, and close payroll accounts.

Then notify the IRS in writing to close your business account for the EIN. Include your legal name, EIN, address, and the reason for closure.

If you liquidate or reorganize, confirm whether a successor entity needs a new EIN before you shut down the old one. Save dissolution papers, final returns, and IRS confirmation letters in your permanent records.

Coordinating timing across bank accounts, payroll, and tax agencies prevents accidental filings under a closed EIN.

Public EIN discovery limits and alternatives

EINs are not universally public, and most private companies do not list them openly. Exceptions exist: nonprofits disclose EINs on Form 990, and public companies may include EINs in certain SEC filings.

If you need a vendor’s EIN, request a W‑9 and store it securely rather than attempting to source it from third‑party databases.

For due diligence, you can sometimes confirm EINs indirectly through public records like charity databases or securities filings. However, payers should rely on W‑9s and TIN matching rather than scraped data.

Clear documentation protects both sides and keeps you compliant during audits and 1099 reporting.