Comparison of a Federal Tax ID and a State Tax ID

Determining the Need for an EIN and TIN

• Your business must have an EIN if it is a corporation or partnership; hires employees; has a Keogh; or is involved with trusts, estates, real estate investments, nonprofit organizations or farming cooperatives. Every business must have a TIN.
  
  

Using Your TIN

• Your business's TIN is used for any government interaction at the state level. It is required for the collection and remittance on sales tax of most tangible items it sells. For that reason, sometimes the TIN is referred to as a Sales Tax Number. Your TIN is also needed to open a bank account, participate in unemployment insurance or withhold state employment taxes.
  
  

Using Your EIN

• Your business's EIN is used for any government interaction at the federal level. Examples include filing federal taxes or paying Social Security and Medicare taxes on employees.