EIN stands for Employer Identification Number, while TIM stands for Tax Identification Number. The Revenue Department has discovered a system by which it can look through millions of companies' records and find them easily by utilizing the ID number that characterizes who you are in the market, your status, and yours and your employees' tax dues. EIN entails the identification required to start a business and hire employees. EIN is used for employment purposes, while TIN is used for tax purposes. You will also have to have a tax identification number that takes record of the person's individual taxes when launching a company or business with another person or people. TIM is also utilized when opening a business bank account. The TIN is a nine-digit number issued to companies for tax purposes and it represents the company's status with the Internal Revenue Service. It is a number given to a company to create and make a business more successful.
EIN and TIN may be confusing in the beginning but you should realize that EIN is something that you will use when you need to identify companies. TIN is something that will be used to help identify the different taxable individuals that can be found in the United States of America. Take note that one similarity between the two is they are used for reporting purposes. Other than that, the numbers that are assigned will be used differently. TIN can be used so that the IRS will be able to determine who among the individuals are paying the taxes correctly. An LLC, which is a type of company, would need to have an EIN as compared to a TIN.