Is an EIN the Same as a Tax ID? A Simple Guide to Business Identifiers
Ever feel like the world of business jargon is a confusing alphabet soup? You're not alone! When you’re starting a new business, you'll encounter a lot of new terms, and "EIN" and "Tax ID" are right at the top of that list. So, let's cut to the chase and answer the burning question: are they the same thing? The short answer is yes, for most purposes, an EIN is a type of Tax ID. It’s like how a "car" is a type of "vehicle." The term "Tax ID" is a broad umbrella that covers several different types of identification numbers, and your EIN is the most common one for businesses. Let's break down the different identifiers so you know exactly what you're dealing with. What is an EIN? (The Federal Business Tax ID) An EIN stands for Employer Identification Number . It's a nine-digit number assigned by the IRS (Internal Revenue Service) to businesses operating in the United States. Think of it as your business's Socia...