The EIN and DUNS are only two of the many numbers and codes that business owners must be aware of when launching a venture. The Internal Revenue Service (IRS) issues firms with an individual nine-digit number known as an EIN (Employer Identification Number) for tax-related purposes. Businesses are given a nine-digit DUNS (Data Universal Numbering System) number by Dun & Bradstreet to distinguish them in their database. Although both numbers are significant for various reasons, they cannot be used interchangeably.
The EIN is a special nine-digit number that the IRS issues to firms for tax purposes, as was already established. The term “Federal Tax Identification Number” is also used to describe it. When submitting tax returns, paying taxes, requesting business licenses, creating a business bank account, and recruiting staff, a business entity is identified by its EIN. Corporations, partnerships, LLCs, and sole proprietorships with employees are all business types that need an EIN. The IRS website allows for the quick and easy online application for an EIN.
Contrarily, Dun & Bradstreet uses the nine-digit DUNS to uniquely identify businesses in their database. Businesses utilize DUNS numbers to build credit relationships with suppliers, request for loans and credit lines, and bid on government contracts. Other businesses also utilize DUNS numbers to confirm a company’s validity. The Dun & Bradstreet website offers a free online DUNS number application process. Excellent DUNS scores
Businesses are given a DUNS score by Dun & Bradstreet, which serves as a gauge of their creditworthiness and financial health. A higher score on the DUNS scale, which goes from 1 to 100, indicates a lesser default risk. A good DUNS score is one that is 80 or higher. Businesses with high DUNS scores are more likely to be awarded government contracts and to be given favourable payment terms by suppliers. Businesses can keep a low debt-to-credit ratio, pay invoices on time, and update their company data frequently to raise their DUNS score.
The EIN and DUNS are both nine-digit identifiers that organizations must be aware of, but they have different uses. The DUNS is assigned by Dun & Bradstreet to identify businesses in their database and determine creditworthiness, whereas the EIN is assigned by the IRS for tax purposes. Entrepreneurs may make sure they have the knowledge needed to launch and expand their business by comprehending the distinction between these two statistics.