Overview
TIN vs EIN is a matter of scope: a Taxpayer Identification Number (TIN) is the umbrella term for government tax identifiers, and an Employer Identification Number (EIN) is the TIN used for businesses, estates, and trusts. Choosing the right identifier affects banking, payroll, vendor onboarding, and tax reporting.
This guide gives concise, decision-ready answers for U.S. and non-U.S. founders, freelancers, and small-business owners so you can determine which number fits your situation and how to apply in 2025.
What is a TIN and how does an EIN fit in?
A TIN is any government-issued number used to identify taxpayers; an EIN is the TIN assigned to entities, estates, and trusts. The most common TINs are the Social Security Number (SSN), the Individual Taxpayer Identification Number (ITIN), and the EIN.
A TIN’s type depends on who or what is filing or being paid. SSNs are issued by the Social Security Administration and identify individuals, while the IRS issues ITINs and EINs; see the IRS overview of taxpayer identification numbers for official definitions. Use the correct TIN to match the legal name and filing type on IRS forms to avoid mismatches.
Why does the distinction matter for 2025 business operations?
Using the correct identifier prevents onboarding and reporting delays and protects privacy. Many banks, payroll providers, and large payers expect an EIN for business accounts and vendor onboarding; sole proprietors can sometimes use an SSN but may prefer an EIN to avoid sharing their SSN.
EINs are issued at no cost by the IRS and, for qualifying online applicants, are typically issued immediately after a complete application session; see the IRS EIN online application for details. Picking the right TIN up front reduces rework when hiring, adding payroll, or registering benefits.
Who needs an EIN and who can use another TIN?
Most entities with employees or multi-owner structures need an EIN, while single-person operations without employees can often use an SSN. Non-U.S. applicants can obtain an EIN without an SSN via IRS international procedures.
Common rules of thumb:
- You need an EIN if you have employees, are a corporation or partnership, are an LLC with more than one member, or file excise or retirement plan returns.
- A sole proprietor with no employees and no specialized filings can generally use an SSN, though many obtain an EIN for privacy and onboarding.
- Disregarded single-member LLCs may use the owner’s TIN for federal tax filing but frequently still provide an EIN to banks and platforms.
- Non-U.S. founders without SSNs can follow the IRS International Applicants path to obtain an EIN.
These guidelines cover typical cases; check specific payer or bank requirements and the IRS online application page if you’re unsure.
When can a sole proprietor use an SSN instead of an EIN?
A sole proprietor may use an SSN when there are no employees and no filings (like excise or retirement plan returns) that require an EIN. Choosing an EIN is often a practical step to keep your SSN off vendor paperwork and W‑9s.
If your operation stays single-owner without payroll, the IRS accepts your SSN for federal reporting, but many vendors and banks will still request or prefer an EIN to separate business and personal records.
What forms and documents are associated with each identifier?
Each TIN is tied to specific forms and application processes; using the correct identifier on each form prevents mismatches and withholding. The SSN is tied to SSA processes, ITINs are requested with IRS Form W‑7, and EINs are requested through the IRS EIN application.
Common pairings to know:
- EIN: apply via the IRS EIN online application and use it on business filings and W‑9s given to payers (see IRS Form W‑9).
- ITIN: apply using IRS Form W‑7 if you’re an individual who doesn’t qualify for an SSN.
- SSN: issued by the Social Security Administration via their SSN processes (see the SSA SSN page).
- W‑8BEN‑E: foreign entities use this form to certify status and provide any U.S. EIN or foreign TIN for withholding and treaty claims.
Correctly matching form and identifier reduces the chance of 1099 errors and withholding issues; read each form’s instructions before submitting.
How do W-9 and W-8BEN-E use TINs and EINs differently?
W‑9 is for U.S. persons to certify a TIN (SSN or EIN) to a payer for 1099 reporting, while W‑8BEN‑E is for foreign entities to certify status, provide a foreign TIN or U.S. EIN if applicable, and claim treaty benefits. Use the form that matches your tax status to avoid withholding or onboarding rejection.
W‑9 effectively tells a payer “this is the correct U.S. TIN for reporting,” whereas W‑8BEN‑E communicates foreign status and withholding treatment; consult the instructions for each form to determine which identifier to provide.
What does it cost and how long does it take in 2025?
Obtaining an EIN from the IRS is free; online applicants who complete the session typically receive their EIN immediately. ITIN processing requires document verification and can take several weeks, so start early when an ITIN is needed for onboarding.
Avoid third-party services that charge for an EIN because the IRS provides EINs without a fee; for online issuance and eligibility see the IRS EIN online application and the ITIN instructions on Form W‑7.
How do you apply for an EIN or other TIN step by step?
Applying correctly depends on the TIN you need; follow the official forms and have legal names and identity documents ready. Gather the relevant details, complete the official application channel, and preserve the issuance notice.
Steps to apply:
- For an EIN (domestic): gather the legal entity name, responsible party details, and entity type; apply free using the IRS EIN online application and download the confirmation.
- For an EIN (international): follow the IRS International Applicants instructions if you lack an SSN/ITIN.
- For an ITIN: complete IRS Form W‑7 with required ID documentation and submit per the instructions or use an IRS acceptance agent.
- For an SSN: apply through SSA processes (Form SS‑5) and provide required identity and status documents.
- After issuance: save the EIN confirmation or SSA/IRS letters and use the exact legal name and TIN on your bank, payroll, and vendor records.
Keep the confirmation notice with your formation documents and update systems immediately to avoid onboarding friction.
How should you use these numbers on tax and banking forms?
Use the TIN that matches the legal name on the specific form and follow the form instructions for disregarded entities versus separate entities. Inconsistent name/TIN combinations cause mismatches and potential withholding.
For example, disregarded single-member LLCs often report under the owner’s name and TIN per W‑9 instructions while still using the LLC’s EIN for bank and payroll systems. Read the instructions on each IRS form (like Form W‑9 and Form W‑8BEN‑E) to determine which name and TIN to provide.
How do you manage changes, errors, or a lost EIN?
Correct errors and report changes quickly to stay compliant and avoid TIN mismatches. Use the proper IRS form when ownership, responsible party, or address changes occur, and retain copies of filings that display your EIN.
Report business address or responsible party changes using IRS Form 8822‑B. If you misfiled SS‑4 details, contact the IRS Business & Specialty Tax line to correct errors; if you lose your EIN confirmation, check past tax returns, bank statements, or payroll records where the EIN may appear.
How do you verify TINs and reduce backup withholding risk?
Verifying name/TIN combinations before payments reduces notices and the chance of backup withholding. Payers should check TIN matches during onboarding and again before year-end filing.
The IRS TIN Matching program allows authorized payers and third-party submitters to confirm name/TIN pairs, and the IRS provides guidance on backup withholding obligations; enroll or review the TIN Matching guidance to incorporate checks into vendor onboarding and 1099 workflows.
What common mistakes lead to delays, penalties, or rejections?
Most errors stem from mismatched names and TINs, wrong entity selections, or paying for unnecessary services. Catching and correcting these issues early prevents payment holds and IRS notices.
Common pitfalls to avoid:
- Choosing the wrong entity type on Form SS‑4 and receiving an EIN tied to the incorrect classification.
- Listing the wrong responsible party or failing to update it after ownership changes (use Form 8822‑B).
- Providing a disregarded LLC’s EIN on a W‑9 when the owner’s TIN is required.
- Using a trade name or nickname instead of the legal name from formation or SSA records.
- Paying third parties to obtain an EIN when the IRS issues them for free.
Cross-check legal names, tax classification, and TINs against formation documents and SSA letters before submitting forms to minimize rejections and withholding.
What should you do next after choosing the right identifier?
After you pick the correct TIN, align it across all systems and communicate updates to banks, payroll, and major clients to avoid onboarding interruptions. Keep documentation handy and run verification checks if you issue 1099s.
Next-step checklist:
- Save your EIN confirmation or SSA/IRS letters with formation records.
- Update banks, payment processors, payroll, and benefits systems with the exact legal name and TIN.
- Provide updated W‑9s (or W‑8BEN‑E for foreign entities) to key clients and platforms.
- File Form 8822‑B promptly if your business address or responsible party changes.
- Run IRS TIN Matching (if you issue 1099s) before year-end to catch mismatches.
With consistent records and verification in place, you’ll reduce friction when banking, billing, hiring, and filing.