What is the difference between an EIN & a FEDERAL ID NUMBER?
EIN is an acronym for “Employer Identification Number”. An Employer Identification Number is also known as a taxpayer identification number, or TIN. A sole proprietorship that has no employees and files no excise or pension tax returns is the only business that does not need an employer identification number. In this instance, the sole proprietor uses his or her social security number as the taxpayer identification number. For further understanding, visit the IRS website by clicking here.
