According to the U.S. Census Bureau, 5.5 million new business applications were filed in 2023 alone. But here's what they don't tell you: a significant portion of these eager business owners hit their first major roadblock amid business identification numbers.

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Your bank asks for an EIN. A potential vendor needs your D-U-N-S number. Your tax preparer mentions an ITIN if you're not a U.S. citizen. What started as a simple "I want to start a business" has turned into several business identification numbers that nobody explained.

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If this sounds familiar, you're not alone. Every year, thousands of ambitious entrepreneurs find themselves stuck in what we like to call "ID limbo"—that frustrating phase where you know you need something to move your business forward, but you're not sure what that something is.

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Here's the issue: getting the wrong business ID (or worse, not getting one when you need it) can derail your startup dreams. We're discussing delayed bank account openings, missed funding opportunities, and tax compliance issues.

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While EIN vs ITIN vs D-U-N-S number decisions might seem complex, there's a clear logic as to when and why you need each one. Some startup IDs are absolute must-haves for basic operations, while others are more like strategic investments in your business's future growth and credibility.

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In this article, you'll learn what each ID does, when your startup needs it, and how to prioritize your applications so you can get back to what matters.

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Why Multiple Business IDs Exist 

When launching your startup, you’ll discover that no single ID number fits all purposes. That’s because different organizations issue IDs for different reasons:

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Different Agencies, Different Purposes

• EIN: Issued by the IRS as your Federal Tax Identification Number, it is important for tax filings, hiring employees, filing returns, and opening business bank accounts.
• D U N S Number: Issued by Dun & Bradstreet, this is a global identifier used to establish and track your business credit history. It’s often mandated in government contracting, vendor setups, and international trade.
• ITIN: Also from the IRS, it’s for non-resident entrepreneurs without an SSN, strictly for federal tax reporting (not for hiring or forming an LLC).

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They enable important business functions

• Filing taxes, paying employees, and setting up payroll require an EIN.
• Opening business bank accounts requires an EIN or SSN.
• Obtaining business credit, loans, or vendor terms often requires a D U N S to build a credit profile.
• Bidding on government contracts or grants almost always mandates a D U N S number.
• ITINs allow non-U.S. residents to legally report business income—even though they can't use it to hire staff.

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What is an EIN?

An Employer Identification Number (EIN); also known as a Federal Tax ID, is a unique, nine-digit number formatted as XX XXXXXXX, issued by the IRS. Used to identify a business entity for federal tax reporting, the EIN serves a similar purpose for companies that a Social Security Number (SSN) does for individuals.

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Your startup will need an EIN in these situations:

• Hiring employees: Required for payroll, withholding, and reporting taxes.
• Opening business bank accounts: Most financial institutions mandate an EIN to separate business from personal finances.
• Filing federal tax returns: LLCs, corporations, partnerships, trusts, and estates all require an EIN for federal tax filings.
• Forming LLCs or corporations: Legal business formations automatically require an EIN.

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How to Get an EIN

Follow these steps to get an EIN via the IRS:

• Online: Available Monday to Friday, 7 a.m.–10 p.m. ET. It is issued instantly once you submit Form SS 4.
• Phone, fax, or mail: You can get an EIN via U.S. fax in approximately 4 business days; mail takes about 4 weeks. International applicants may call +1-267-941-1099.
• Free of charge: Never pay third-party services for an IRS-issued EIN.

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Common Application Mistakes to Avoid

• Applying too early or without legal formation, which can delay processing or result in rejection.
• Using mismatched legal names or addresses that don’t align with formation documents or USPS records.
• Including unsupported symbols (e.g., apostrophes, commas) instead of letters, numbers, hyphens, or ampersands.
• Failing to designate the proper “responsible party” (e.g. owner, officer) or using a nominee.
• Submitting multiple applications when one EIN suffices.

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What is an ITIN?

An Individual Taxpayer Identification Number (ITIN) is a nine-digit tax processing number issued by the IRS for individuals who are not eligible for a Social Security Number (SSN) but need to file U.S. federal taxes or claim tax-related benefits.

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Formatted like an SSN (9XX XX XXXX), the number always begins with “9” and includes specific middle-digit ranges such as 50–65 or 70–99.

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Startups and solo founders who are non-U.S. citizens or non-resident aliens often require an ITIN in the following situations:

• Tax filing: Required for anyone with U.S. tax obligations but no SSN, including foreign nationals with revenue or investments in the U.S.
• Business ownership: Important for claiming ownership in a U.S.-based business or reporting U.S.-sourced income, like rental or partnership revenue.
• Spouse/dependent situations: Needed when filing jointly with a U.S. spouse or claiming foreign dependents on a U.S. tax return.

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How to Apply for an ITIN

Follow these steps to get an ITIN:

• Complete Form W-7 and check the appropriate reason (e.g., non-resident alien filing a U.S. return).
• Submit required documentation proving foreign status and identity (usually a passport or other certified documents).
• Include a federal tax return with your W-7 application, unless you qualify for an exception (certain treaty cases, etc.).
• Mail everything to the IRS or apply in person with an IRS-authorized agent or Certified Acceptance Agent.
• Expect processing to take about 7 weeks, or up to 11 weeks during tax season (January 15–April 30) or if submitted from abroad.

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Renewal and Inactivity Rules

• Renew if unused: An ITIN expires if it hasn't been used on a U.S. tax return for three consecutive years.
• Renewal process: Use Form W-7 again, checking “Renew an existing ITIN.” You don’t need any tax return if you’re not filing.
• Timing: Submit renewal before your next tax return to avoid processing delays or missed tax credits.

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Limitations

• Not valid for employment: An ITIN does not grant work authorization or qualify you for Social Security benefits.
• Restricted banking and business functions: Some banks and institutions require a valid SSN or EIN. You may face limitations opening accounts or formalizing your business solely with an ITIN.
• Should be paired with an EIN: If you're starting a U.S.-based company (even as a sole proprietor) you likely will need an EIN for hiring employees, banking, contracts, and tax reporting.

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What is a D-U-N-S Number?

The D U N S Number (Data Universal Numbering System) is a unique nine-digit identifier issued by Dun & Bradstreet (D&B). It serves as a global business ID, linking your company to its credit profile and distinguishing it from the millions of other businesses worldwide. Think of it as a social security number (but for your business).

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You need a D-U-N-S number for the following:

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Establishing Business Credit

A D U N S Number is useful for building a formal business credit profile with D&B. It gives you access to your PAYDEX score, which lenders, suppliers, and potential partners use to measure your financial reliability.

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Without it, your business may be forced to rely on personal credit, thereby limiting growth potential.

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Contracts and Vendor Relations

While not compulsory for all federal contracts (replaced recently by the UEI system), a D U N S is still widely required by many B2B platforms, app stores (e.g., Apple, Google), FDA registrations, and international trade operations.

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Large vendors and government bodies depend on D U N S to verify and vet businesses before formalizing agreements.

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Loans and Partnerships

Banks and investors look at your credit file before granting loans, credit lines, or equity funding. A D U N S establishes credibility and improves your chances of securing favorable terms.

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How to Get a D-U-N-S Number

• Free Registration: Applying for a D U N S Number is free through the D&B website.
• Required Information: You’ll need to supply your business name, address, phone, legal structure, year founded, number of employees, and owner/executive names.
• Processing Time: Standard processing takes up to 30 business days, though expedited services (e.g. 8 business days) are available for a fee.
• Separate for Locations: Each physical office requires its D U N S Number.

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Best Practices

These tips will prevent you from running into trouble with your D-U-N-S number:

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Build Credit Early

Once you have your D U N S Number, set up tradelines (such as vendor accounts or business credit cards) that report to D&B. Timely payments help establish a strong credit profile.

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Monitor and Update Your Profile

Use D&B’s lookup and monitoring tools to keep your company information accurate. Dispute errors quickly; outdated or duplicated information can negatively impact your score.

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Avoid Misreporting or Duplicates

Ensure consistency in how your business is listed (same legal name, address, and structure) to prevent duplicate records. Clean, reliable data improves credibility with lenders and B2B partners.

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Side-by-Side Comparison: EIN vs. ITIN vs. D-U-N-S

The table below makes it easy for you to spot the differences between EIN vs. ITIN vs. D-U-N-S:

Where Your Business IDs Work Together (And Where They Don't)

While the EIN and ITIN come from the IRS, they serve different audiences and purposes.

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You might need both if you're a non-citizen starting a business; the ITIN for your tax filing and the EIN for your business operations. However, you'll never need both an EIN and ITIN for the same entity.

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The D-U-N-S number stands alone as your only credit-building identifier. Unlike tax-focused EIN and ITIN numbers, your D-U-N-S number feeds into a completely separate ecosystem managed by credit reporting agencies.

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This is why many successful entrepreneurs prioritize getting their D-U-N-S number early. It takes time to build a business credit history, and you can't start that until you have the number.

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For instance, consider a non-U.S. citizen launching a consulting LLC. The person needs all three: an ITIN for personal taxes, an EIN for LLC's business operations, and a D-U-N-S number to work with enterprise clients who require vendor verification.

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The non-citizen’s timeline involves getting the EIN first (immediate business needs), applying for the D-U-N-S number simultaneously (30-day processing), and securing her ITIN renewal to ensure clean tax filing.

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Now compare that situation with a U.S. citizen starting a solo consulting practice. In this case, the citizen might only need an EIN initially, then add a D-U-N-S number later when he's ready to pursue larger contracts or business credit. The ITIN doesn't factor into his equation at all.

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In a nutshell, your citizenship status, business structure, and growth timeline determine which combination of business identification numbers you need. There's no one-size-fits-all approach, but understanding how these IDs work together (or independently) helps you make the right decisions about timing and priorities.

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Which IDs Does Your Startup Need?

The use-case scnarios below can hep you determine the ID your startup needs bewteen EIN vs. ITIN vs. D-U-N-S:

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U.S. Citizen Sole Proprietor → EIN

Even if you're the only person in your business and don’t plan to hire, an EIN still offers important benefits. It allows you to separate personal and business finances, open a business bank account, and protect your SSN while simplifying payments and reducing identity theft risks.

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Non-Citizen Founder → ITIN and EIN

If you're a non-U.S. citizen without an SSN, an ITIN enables you to comply with IRS tax filings. However, to open bank accounts, file business taxes, and hire staff, you'll also need an EIN.

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LLC or Corporation → EIN mandatory

Forming an LLC, partnership, or corporation always requires an EIN. The IRS mandates EINs for legal filings, payroll, and tax returns.

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Planning to hire → EIN is a must

As soon as you make payroll decisions (even contracting) you need an EIN to report employment taxes and manage W2s.

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Credit-building or federal contracting → D U N S

If you want to establish business credit, get vendor terms, or pursue government and large-corporate contracts, a free D U N S number from Dun & Bradstreet can give you access to those opportunities.

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Hand Off Your Startup's Admin Headaches to Chore

Getting your EIN, ITIN, or D-U-N-S number is just the beginning of your startup's operational journey.

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Once you have these business identification numbers in place, you'll discover that running a business involves countless administrative tasks that can drain your time and energy from what matters; growing your company and serving customers.

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This is where Chore, your fractional Chief of Staff for HR, compliance, finance, and equity, comes in.

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Chore handles everything from payroll management and state filings to investor audits and employee onboarding; all the back-office work that isn't your main competency but is needed for business success.

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Instead of hiring expensive internal operations staff or spending countless hours learning compliance requirements, you can delegate these functions to experts who specialize in startup operations (i.e., Chore).

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Our four pillars of operations include Human Resources (HR), Finance, Compliance, and Equity management; areas where your new business identification numbers will be put to work.

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Chore can help you set up payroll systems with your new EIN, manage tax compliance with your ITIN, and build business credit profiles with your D-U-N-S number.

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Ready to transform your business operations from a time-consuming burden into a competitive advantage?

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Schedule a demo and discover how our fractional operations team can handle the administrative complexity while you focus on building the next great company.

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FAQs

Do US companies have a DUNS number?

Yes, U.S. companies can get a D-U-N-S number, but it’s not assigned automatically. They must apply through Dun & Bradstreet.

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Can I use my Social Security Number instead of getting an EIN?

While sole proprietors can use their SSNs for business purposes, getting an EIN is almost always the smarter choice. An EIN protects your personal SSN from being shared with banks, vendors, and contractors. Also, you'll need an EIN anyway if you ever hire employees, form an LLC, or want to build business credit separate from your personal credit.

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Do I need an EIN and an ITIN as a non-U.S. citizen?

It depends on your situation. If you're a non-citizen starting a business, you need an EIN for the business itself and an ITIN for your tax filing (if you don't have an SSN). Think of it this way: the ITIN is for you as an individual, while the EIN is for your business entity. However, if you already have an SSN, you won't need an ITIN.

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Can I get a D-U-N-S number before I have an EIN?

Yes, you can apply for a D-U-N-S number using your SSN if you don't have an EIN yet. However, many business owners prefer to get their EIN first since it's faster and provides better separation between personal and business identification. Once you have your EIN, you can update your D-U-N-S record to reflect the business tax ID instead.

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What's the biggest mistake startups make with business IDs?

The most common mistake is waiting until you urgently need an ID to apply for it. This is usually a problem with ITINs, which take months to process. The second biggest mistake is using personal SSNs for business purposes when an EIN would be more appropriate. Plan and apply for IDs based on your business goals, not just immediate needs.

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