A number of countries use different types of taxpayer identification numbers. Within the US, several numbers are used, which can be applied for specific purposes. However, if they are used incorrectly, the taxpayer may face penalties imposed by the US tax authority, the Internal Revenue Service. More specifically, it is worth looking at the differences between EIN vs TIN numbers.
US tax identification numbers
There are different taxpayer identification numbers used in the United States. These are not only applicable for tax returns, but also for other tax-related documents. TIN numbers must be used for specific purposes. An important number is the EIN, which can be found under names such as Federal Tax Identification Number or Federal Employer Identification Number. The number is the national insurance number for business activities.
Ways of acquiring an EIN number
You can obtain an EIN by several methods. The first is by completing form SS-4, that can be sent to the office by fax. However, this is not the fastest way, as an EIN is issued in this case within 4-5 days. It is definitely quicker, within 1-2 days, to do this via the Internal Revenue Service website. Another advantage is that here you can not only obtain an EIN number, but also check that all the necessary information has been sent and that the form does not contain any mistakes. Other ways are the traditional phone contact and applying by post, but these are also the slowest of all methods and are therefore not advisable today.
How can an EIN number be utilized?
An EIN is typically used for operations such as filing tax returns, opening business bank accounts, as well as applying for licences and for opening business accounts. It can be used by employers, partnerships, trusts, corporations, government agencies and non-profit organizations. Nevertheless, not every company needs to use it. The SSN, or Social Security Number, is also used in the tax system. That is a national insurance number consisting of nine digits, which can be used by companies that do not employ any employees. So it applies to sole proprietors, as well as limited liability companies, or LLCs.
Specialized tax office guidance
To run a company in the USA, you need to know a lot more than just the differences between EIN vs TIN numbers. For more information on this topic, consult the website at the following address: https://polishtax.com/ein-vs-tin-whats-the-difference/. Therefore, a good solution is to use the services of a specialized tax consultancy company such as INTERTAX. It offers complex solutions for businesses in the USA. Cooperation with INTERTAX guarantees a flexible service and the efficiency of the measures taken. This will enable you to start your business in the USA without any problems and focus on developing your products and services provided to the market.
