An EIN is a type of tax identification number, but "tax ID" can mean more than an EIN.
For a business, EIN and federal tax ID number usually mean the same nine-digit number issued by the Internal Revenue Service (IRS). The broader term tax identification number (TIN) can also refer to an individual's Social Security number (SSN), Individual Taxpayer Identification Number (ITIN), or other IRS-issued identification numbers.
EIN vs. Tax ID: Quick Comparison
| Term | What it means | Usually used by |
|---|---|---|
| EIN | Employer Identification Number | Businesses, nonprofits, estates and trusts |
| Federal tax ID | Common name for an EIN | Businesses and other entities |
| Tax ID or TIN | Broad category of taxpayer identification numbers | Individuals and businesses |
| SSN | Social Security number | Most individual taxpayers |
| ITIN | Individual Taxpayer Identification Number | Certain individuals who cannot obtain an SSN |
| State tax ID | Identification number issued by a state | Businesses with state tax obligations |
When Does "Tax ID" Mean EIN?
"Tax ID" usually means an EIN when a form or institution asks for a business's:
- Federal tax identification number
- Federal employer identification number
- Employer tax ID
- Business tax ID
- IRS tax ID
The IRS describes an EIN as a federal tax identification number used to identify a business entity. EINs can also identify tax-exempt organizations, estates and trusts.
Is an EIN the Same as a TIN?
An EIN is one type of TIN. A TIN is the broader category.
The IRS uses Taxpayer Identification Number (TIN) for numbers used to administer federal tax laws. TINs include:
- Social Security numbers
- Employer Identification Numbers
- Individual Taxpayer Identification Numbers
- Adoption Taxpayer Identification Numbers
- Preparer Taxpayer Identification Numbers
Every EIN is a tax ID, but not every tax ID is an EIN.
Is an EIN the Same as a State Tax ID?
No. The IRS issues an EIN at the federal level, while a state tax agency issues a state tax ID.
A business may need a state tax ID to:
- Collect and remit sales tax
- Withhold state payroll taxes
- File state business tax returns
- Register for certain state programs
A state tax ID may have a different number, application process and purpose from the business's federal EIN.
What Tax ID Should a Business Provide?
Use the type of number named on the form:
- Federal tax ID: Provide the business's EIN.
- EIN: Provide the EIN.
- TIN: Provide the taxpayer identification number that applies to the person or entity.
- State tax ID: Provide the number issued by the relevant state.
- Owner's personal tax ID: Provide an SSN or ITIN if the form requests one.
Do not substitute an EIN for an SSN or ITIN. IRS instructions state that an EIN should not be used in place of either number.
Do Sole Proprietors Need an EIN?
A sole proprietor may use an SSN for some federal income tax reporting. An EIN may be required or useful when the sole proprietor:
- Hires employees
- Operates certain retirement plans
- Changes the business to a corporation or partnership
- Opens a business bank account
- Must meet banking or state tax requirements
- Wants to avoid sharing the owner's SSN with customers or vendors
The IRS states that certain sole proprietors, including those with employees or qualified retirement plans, must obtain an EIN.
The correct number depends on what the form is asking for. A request for a business's federal tax ID generally means its EIN. A request for a personal tax ID may instead require the owner's SSN or ITIN.