Home Building business credit EIN vs D-U-N-S Number: What Each One Is For

EIN vs D-U-N-S Number: What Each One Is For

One is a tax number from the IRS. The other is a free business identifier from Dun & Bradstreet. Here is how they differ and when a business needs each.

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Business owners often mix up two numbers: the EIN and the D-U-N-S Number. They sound alike, but they come from different places and do different jobs. One is a tax number from the IRS. The other is a business identifier from Dun & Bradstreet. The IRS says businesses need the first to manage their taxes. The second is optional and free.

What an EIN is and who issues it

The EIN, or Employer Identification Number, comes from the IRS. The IRS says businesses, organizations and some retirement trusts need an EIN to manage their taxes.

What a D-U-N-S Number is and who issues it

The D-U-N-S Number comes from Dun & Bradstreet, a private company. D&B says it is a unique nine-digit identifier used only for businesses. It establishes a business in the Dun & Bradstreet database so others can confirm it is an active business. D&B also says organizations may use a D-U-N-S Number to evaluate a business credit profile.

The key differences at a glance

The EIN is a tax number. The D-U-N-S Number is a credit and business identity number. The IRS issues the EIN. D&B issues the D-U-N-S Number. The IRS says businesses need an EIN to manage their taxes. D&B says there is no requirement for a company to have a D-U-N-S Number. D&B says getting a D-U-N-S Number is free.

When a business needs an EIN

The IRS says you generally need an EIN in several common situations. You need one to hire employees. You need one to operate a partnership or corporation. You also need one to pay sales and excise taxes. A change in business structure or ownership generally calls for one too.

When a business would get a D-U-N-S Number

No rule makes a business get one. D&B says a D-U-N-S Number is not required for U.S. federal government contracts. So why would a company want one? It establishes the business in the Dun & Bradstreet database so others can confirm it is an active business. Organizations may also use it to evaluate a business credit profile. Businesses of many types, from S-Corps to partnerships and LLCs, can get one. A business with multiple locations should apply for a separate D-U-N-S Number for each location.

How to get each one

For the EIN, the IRS says to form your corporation or LLC through the secretary of state before you apply. Your application may be delayed if you do not form your entity with the state first. Once the entity exists, you can get an EIN number through the IRS.

For the D-U-N-S Number, start by checking whether your business already has one. D&B has a lookup tool for that, and you can check your D-U-N-S Number with it. The number is issued just once, never expires and never changes, even if the business closes or is purchased. If there is none, you can request one. Getting a D-U-N-S Number is free, and D&B says you never have to buy any product or service to obtain, use or keep one.

How the two work together for business credit

The two numbers do not replace each other. The EIN handles the tax side of the business. The D-U-N-S Number handles the credit side, where it links the business to its D&B record. The EIN covers taxes and operations. D&B says organizations may use a D-U-N-S Number to evaluate a business credit profile. U.S.-based non-public companies can view and request updates to their business information for free through the D-U-N-S Manager. For the bigger picture, see how to establish business credit.

So, is an EIN the same thing as a D-U-N-S Number? No. Do you need both? The IRS says businesses need an EIN to manage their taxes, and D&B says a D-U-N-S Number is not required and is free to get.

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