You’re eager to get going and apply for your EIN online. But wait, what does EIN mean again? How does it differ from TIN?

Here is some helpful information to set things straight between a Tax Identification Number (TIN) and an Employer Identification Number (EIN).

The 9-Digit Numbers

TIN is a broad term which refers to the numbers assigned by the federal government to an individual and business. TIN includes the EIN, Individual Taxpayer Identification Numbers (ITINs), Taxpayer Identification Numbers for Pending U.S. Adoptions (ATINs), Preparer Taxpayer Identification Numbers (PTINs) and the Social Security Numbers (SSNs).

It contains nine digits which identify the taxpayers, which includes sole proprietors, employers, corporations, partnerships, nonprofit organizations, trusts, estates of decedents, government agencies, certain individuals, and other business entities listed in the Internal Revenue Service (IRS).

Identification Numbers

These numbers are unique to a person and business. They help distinguish the entity from the others that might have registered under the same name. Since it serves as identification numbers, the Tax ID and EIN can be found on the documents submitted to IRS. The EIN is also called Federal Tax identification number or FTIN.

Applying for a TIN

You may be required to get an EIN or Tax ID Number if you are starting your own business, hiring employees, opening a bank account, getting into a business partnership, or updating the ownership of your business or organization. To get your own EIN, you have to select the type of your entity first and fill out a form which will be submitted to the IRS.

Sometimes, the Tax ID can take a few weeks before it is added to the official records of the IRS. But services online, like GovDocFiling, have been found simple and easy to use to assist first-time taxpayers. You will receive your TIN within an hour after applying for your EIN online.

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