Step 04 Business identity
EIN and D-U-N-S: your business's two numbers.
To build business credit, your business needs two numbers that have nothing to do with your Social Security number: the EIN, which identifies it to the IRS, and the D-U-N-S number (also written DUNS), which identifies it to Dun & Bradstreet. One is for taxes; the other is the foundation of its business credit profile.
What an EIN is
The EIN (Employer Identification Number) is a nine-digit number in the format 12-3456789, issued by the IRS. It identifies your business for taxes, and banks and vendors ask for it to open accounts in the business's name.
How to get it
- At irs.gov, with the online application. It's free.
- If you complete it online and it's approved, you get the number when you finish.
- To apply online, the person responsible for the business needs their Social Security number (SSN) or their ITIN. If they have neither, it can't be done online; the IRS explains on irs.gov how to apply by fax or by mail with Form SS-4.
The IRS doesn't charge for the EIN. Some sites charge to do the paperwork for you; it isn't necessary.
What a D-U-N-S number is
The D-U-N-S (Data Universal Numbering System) is a nine-digit number assigned by Dun & Bradstreet, a private company that collects business information. It's used to create your business's file in its database, which is where PAYDEX, one of the best-known business credit scores, is calculated.
How to get it
- On the Dun & Bradstreet website, with the business's legal name, address and details.
- Getting it is free. Through the free route, Dun & Bradstreet says the process can take up to 30 business days. It also sells a paid option that delivers it in about eight business days, and services to monitor the profile; none of them is required to get the number.
- Some vendors and platforms ask for it to open business accounts.
EIN and D-U-N-S, side by side
| EIN | D-U-N-S | |
|---|---|---|
| Who issues it | The IRS (federal government) | Dun & Bradstreet (private company) |
| What it's for | Identifying the business for taxes and paperwork | Identifying the business in Dun & Bradstreet's business database |
| What it costs | Free | Free (can take up to 30 business days); there's a faster paid option |
| Format | 9 digits (12-3456789) | 9 digits |
| Is it required? | Depends on the type of business; almost always needed for the business bank account | Not required by law; it helps build the business profile |
Do I need both?
To build business credit, it's common to have both: the EIN, so the business exists for the IRS and at the bank, and the D-U-N-S, so it has a file where its payments to vendors are recorded. See how they fit with everything else in how to build business credit.