Understanding the Difference Between UBI and EIN

What is the difference between Ubi and EIN?
State tax ID numbers and federal Employer Identification Numbers are assigned to businesses that employ workers, but EINs can also be assigned even if the company has no workers. UBI refers to Unrelated Business Income.
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The UBI and the EIN are two different identifying numbers that you can come across when founding a business or registering with the government. Although at first glance these acronyms may seem to mean the same thing, knowing the difference between them is crucial to the success of your company.

Unified Business Identifier, or UBI, is a special nine-digit number given to companies doing business in Washington state. This number is used for a number of things, including tax filing, licensing, and registration, as a way to identify your business. You must apply for a UBI number if you run a business in Washington.

Contrarily, the EIN, or Employer Identification Number, is a special nine-digit number given by the IRS to companies doing business in the US. This number is utilized to identify your company for tax-related activities such as paying taxes and filing tax returns. You must apply for an EIN if you have workers or if your business is a corporation or partnership.

Although both the UBI and the EIN are identification numbers used in business, their objectives differ. The EIN is used all across the United States, whereas the UBI is unique to Washington state. The EIN is generally used for tax purposes, however the UBI is utilized for a variety of purposes as well.

You might be wondering how to get these numbers now that you are aware of the distinction between the UBI and EIN. You must visit the Washington State Department of Revenue website and finish the application process to get a UBI. Online completion of the procedure usually takes less than 30 minutes.

You must visit the IRS website and finish the application process to get an EIN. The EIN application is also online and normally takes less than 30 minutes to complete, similar to the UBI application. You must submit details about your company, such as its name, address, and kind of organization.

In conclusion, it’s critical for any business owner operating in Washington state or the US to comprehend the distinctions between the UBI and EIN. Both identification numbers are crucial for your company, but they have different purposes and are unique. You may make sure that your company is correctly identifiable for tax and regulatory purposes by obtaining both the UBI and the EIN.

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