In the United States, we have a social security number (SSN) that is used as a national identification number for tax reasons and also used to track individuals for social security reasons. Our social security number is commonly used for situations such as opening a bank account, applying for personal credit such as a credit card or loan, and in instances related to health like insurance or medical coverage. On the other hand, a federal tax ID number, also known as TIN (tax identification number) works somewhat the same except for a business rather than an individual person.
A tax ID number is a unique number given to a single business and/or a business that has hired employees. This unique number is used by the IRS for differentiating tax purposes among different businesses. In other words, a social security number is used for identifying people while a tax ID number is used to identify and recognize a legal entity or business.
An EIN number might need to be acquired if you are starting a business and meet any of the following circumstances:
- You have employees
- You operate your business as a partnership and/or corporation
- You file excise, alcohol, tobacco, employment, or firearms tax returns
- You withhold taxes on revenue, besides pay, paid to a foreign alien
- You have a Keogh plan
- You are involved with a trust, IRA, estate, non-profit, real estate mortgage investment conduit, farmers’ cooperative, and/or plan administrator program
If any of these meet your business’s circumstances then you will need to obtain an EIN number Wisconsin, not a tax ID. Luckily, with IRS-EIN-Tax-ID it is a simple and fast process with our 24-hour available online application. All you need to do is fill out the application and usually, you will receive your EIN number within a day!