Difference between Tax ID and EIN

Because dealing with taxes is one of the most typical experiences we have throughout our lives, acquiring a taxpayer identification number (or TIN) is almost unavoidable for each of us. The Internal Revenue Service (IRS) makes use of a wide variety of acronyms in order to distinguish between the various categories of taxpayers. Because a variety of numbers may be used for reasons of tax identification, it is essential to have an awareness of each number and the distinctions between them.

What is Tax Identification Number (TIN)?

The term "Tax Identification Number," or "TIN," is used by the Internal Revenue Service (IRS) as a catchall term for any number used to identify a taxpayer. The Internal Revenue Service (IRS) assigns taxpayers and businesses a unique nine−digit number called a Taxpayer Identification Number (TIN) to keep tabs on their tax filings and payments.

The Internal Revenue Service and the Social Security Administration can issue a TIN. It's important to note that not all Taxpayer Identification Numbers are the same. TIN is a catchall name for a wide range of various types of numbers. These figures serve a variety of purposes, the primary one being the regulation and administration of American tax law.

The Internal Revenue Service (IRS) and the Social Security Administration (SSA) both issue Taxpayer Identification Numbers. Social Security numbers are issued by the Social Security Administration, whereas ITINs are distributed by the Internal Revenue Service.

Regardless of the type of U.S. tax you owe money on including −

  • TN Visa Taxes

  • L1 Visa Taxes

  • OPT Visa Taxes

  • E2 Visa Taxes

  • Independent Contractor Taxes

The aforementioned fees are only a fraction of all the costs associated with obtaining a visa to the United States. It is your responsibility to learn about and comply with the U.S. tax requirements that apply to you depending on the visa you have been issued.

What is Employer Identification Number (EIN)?

In the United States, businesses are assigned unique identifying numbers called Employer Identification Numbers (EINs) for tax purposes. While TINs are used to identify individuals, EINs are assigned to businesses for taxation purposes. The firm has to establish a legal presence in the US market, so it applies for and receives an EIN from the IRS.

Employers, whether they are corporations or sole proprietors, must have a federal employer identification number in order to legally hire and pay workers. Akin to a social security number, its application is limited to business dealings. Company owners need to apply for an EIN in order to open a business bank account, file taxes and register for a business license (EIN).

Differences: Tax ID and EIN

The following table highlights how Tax ID is different from EIN −

The social security number, the individual tax identification number, and the employer identification number are the three main types of tax IDs. To facilitate the collection of taxes owed and the identification of legitimate businesses, the Internal Revenue Service (IRS) issues a unique nine−digit number called an Employer Identification Number (EIN) to each company.
A taxpayer identification number (TIN) is issued by the Internal Revenue Service (IRS) to individuals and businesses to keep tabs on their tax filings and payments. To facilitate the recording of employment taxes, filing of yearly tax returns, issuance of payroll records, and payment of federal taxes, EINs are routinely issued.
For tax purposes, "tax ID number" is a word used by the Internal Revenue Service (IRS). You must have a current and active tax identification number (such as a Social Security number) before you can apply for an EIN.


The employer identification number (EIN) is required by the Internal Revenue Service (IRS) for tax and identification purposes, and the company must have a legal business presence in the USA to be eligible for one. The principal purposes of an EIN are for reporting and paying federal employment taxes, as well as filing and issuing annual tax returns and payroll documents.

A social security number or employer identification number (EIN) are both types of tax identification numbers. An EIN serves a similar purpose in that it identifies a business for federal taxation. Businesses in the United States are granted "Employer Identification Numbers," or EINs, in the same manner that citizens are given "Social Security Numbers".