The difference between Employer Identification Number (EIN), Tax-ID & Federal Identification Number for Small Business taxes.

According to the Internal Revenue Service, an EIN and a Tax-ID is the same thing. For small business taxes there is no difference between the two that you should be concerned about. You may receive paperwork which says either "Employer Identification Number" or "Federal Tax-ID." In any case, the number will still be in the same format (00-0000000) and consist of the same amount of digits. You will use this number when applying for small business loans and small business credit. If a loan application asks for an EIN, but your paperwork refers to it as a Tax-ID, you may use that number. The two are interchangeable. You are required to have an EIN/Tax-ID if your small business: 

-Has employees.
-Is a partnership or is incorporated.
-Files Employment, Excise, or Alcohol, Tobacco and Firearms tax returns.
-Has a Keogh plan.
-Is involved with certain trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmers' cooperatives or plan administrators.

In addition, if you currently have an EIN/Tax-ID, there are certain circumstances in which you may need to obtain a new one. For example, if you are a sole proprietor and you incorporate, you will need a new EIN/Tax-ID. If you take in partners and operate as a partnership, you will need a new EIN/Tax-ID. If you are already incorporated and change to a sole proprietorship or a partnership, you will also need to obtain a new EIN/Tax-ID. For help with questions about tax identification numbers and small business taxes, please email us.