How to Lookup a Company’s EIN Number

What is an EIN?

The Internal Revenue Service (IRS) assigns Employer Identification Numbers (EINs), which are distinct nine-digit numbers to business entities for taxation purposes. Employers rely heavily on this number, which is formatted as XX-XXXXXXX, as a useful tool for filing taxes.

An EIN guarantees compliance with federal tax rules and expedites the identification procedure for businesses. To operate lawfully in the United States, all businesses must obtain an EIN in order to conduct business. By taking this action, the federal tax system’s accounting for firms is guaranteed.

Sometimes, the terms "Tax Identification Number" (TIN) and "EIN" are used interchangeably. TIN, on the other hand, is a more general phrase that includes any identifier that the IRS uses to follow tax returns. An example of a TIN is the Social Security Number (SSN), which is also applicable to individuals as opposed to businesses. On the other hand, an EIN is a particular kind of TIN reserved for companies.

Why do companies need to verify a business’s EIN number?

When onboarding a new company as a client or partner, businesses in various sectors are required to follow Know Your Business (KYB) processes. In this step, the legality of the company and its proprietors are confirmed, and any possible hazards related to the partnership are evaluated.

A valid EIN is necessary for a business operating in the United States to conduct certain financial and insurance-related operations as well as for lawful operation. As a result, proving the identification of the company requires first confirming the EIN. Making sure the EIN is legitimate and accurately linked to the firm in question is part of this process.

In order to minimize potential hazards and legal responsibilities, the company might want to reevaluate the collaboration if the EINs do not match.

Tanya Narayan Tanya has rich experience in scaling finance companies and currently handles product marketing at Signzy. https://www.signzy.com/us/