A DUNS number and a federal tax ID are both nine-digit business identifiers, but they come from different places and do different jobs. Your federal tax ID, formally called an Employer Identification Number (EIN), is issued by the IRS and handles everything tax-related: filing returns, running payroll, opening bank accounts. Your DUNS number is issued by Dun & Bradstreet, a private company, and it anchors your business credit profile so lenders, suppliers, and potential partners can size up your financial reliability. Most established businesses end up with both. One talks to the government; the other talks to the commercial world.
What a Federal Tax ID Does
The EIN is a nine-digit code the IRS assigns to businesses, nonprofits, trusts, estates, and other entities for tax administration.1Internal Revenue Service. Employer Identification Number It is your company’s identity in the eyes of federal tax authorities. You use it every time you file a return, deposit payroll taxes, or report income paid to contractors.
Banks require an EIN to open business checking accounts and issue business credit cards, even when the IRS itself would not strictly require one.1Internal Revenue Service. Employer Identification Number The EIN also keeps your business finances separate from your personal tax obligations. For an LLC, corporation, or partnership, it is what ties your entity’s filings to the correct account at the IRS.
Who Needs One
You need an EIN if your business has employees, withholds taxes on payments to nonresidents, or files employment or excise tax returns.1Internal Revenue Service. Employer Identification Number A sole proprietor with no employees can technically use a Social Security number instead, but most get an EIN anyway to keep their SSN off invoices and W-9 forms. Any individual operating a U.S. trade or business as a sole proprietor, and any entity that isn’t an individual, generally needs one.2Internal Revenue Service. U.S. Taxpayer Identification Number Requirement
What a DUNS Number Does
The Data Universal Numbering System (DUNS) number is a unique nine-digit identifier assigned to businesses by Dun & Bradstreet, which maintains one of the largest commercial databases in the world.3Dun & Bradstreet. D-U-N-S Number Think of it as a credit file for the company rather than the owner. Once a business has a DUNS number, Dun & Bradstreet begins collecting data on how it pays vendors, how long it has been operating, and how its finances look overall.
That data feeds a PAYDEX score on a scale of 1 to 100. Scores of 80 and above signal low risk to creditors; anything below 50 flags a history of late payments.4Dun & Bradstreet. Business Credit Scores and Ratings Lenders, suppliers, and large corporations routinely pull these profiles before extending trade credit, approving net-30 payment terms, or onboarding a new vendor. A strong DUNS profile can be the difference between favorable credit terms and being asked to pay cash upfront.
No Longer Required for Federal Contracts
For years, a DUNS number was mandatory for any business bidding on federal contracts or applying for federal grants. That changed on April 4, 2022, when the federal government stopped using DUNS numbers and switched to the Unique Entity Identifier (UEI), which SAM.gov now assigns directly during registration.5U.S. Department of Education. Unique Entity Identifier (UEI) Fact Sheet If you register on SAM.gov today, the UEI comes with the registration and you do not need to go through Dun & Bradstreet first.6SAM.gov. Entity Registration The DUNS number still matters for building commercial credit and for private-sector deals where vendors and lenders check your Dun & Bradstreet profile. But if federal procurement was your only reason for wanting one, the UEI has replaced it.
Where They Differ
- Issuer: The EIN comes from the IRS, a federal agency. The DUNS number comes from Dun & Bradstreet, a private company.
- Purpose: The EIN handles tax reporting, payroll, and banking. The DUNS number builds a business credit profile for lenders and suppliers.
- Whether it is required: An EIN is required by federal law for most businesses. A DUNS number is voluntary, though many lenders and large customers expect you to have one.
- Cost: Both are free. Dun & Bradstreet sells optional expedited processing.
- How fast you get it: The IRS issues an EIN instantly through its online system. A DUNS number can take up to 30 business days.
- Government contracting: For federal procurement, the UEI issued through SAM.gov has replaced the DUNS number. The EIN is still needed for the tax side of any government contract.
How to Get Each One
Applying for an EIN
The fastest route is the IRS online application, which issues the EIN immediately upon approval at no cost. The online tool runs on a limited schedule: Monday through Friday from 6:00 a.m. to 1:00 a.m. Eastern, Saturday from 6:00 a.m. to 9:00 p.m., and Sunday from 6:00 p.m. to midnight.7Internal Revenue Service. Get an Employer Identification Number Save or print the confirmation notice as soon as it appears; that document is your official proof until the IRS mails the formal CP 575 letter.
The application (Form SS-4) asks for the business’s legal name as it appears on formation documents, a physical address, the entity type, and the name of a responsible party.8Internal Revenue Service. Instructions for Form SS-4 The responsible party must be an individual, not another business entity, who controls or directs the company’s funds and assets, and must provide their own SSN or Individual Taxpayer Identification Number.9Internal Revenue Service. Responsible Parties and Nominees
Applying for a DUNS Number
You apply directly through the Dun & Bradstreet website, and the standard process is free. Expect to provide your business name, physical address, number of employees, and the year the company started operating. Standard processing can take up to 30 business days. Dun & Bradstreet offers expedited service for a fee (the exact amount is not published and may vary), which can deliver the number in about eight business days.10Dun & Bradstreet. How to Get a D-U-N-S Number
If You Are a Foreign Owner
Foreign nationals forming a U.S. business cannot use the IRS online EIN tool because it requires an SSN or ITIN. The workaround is a paper Form SS-4 with “Foreign” or “N/A” written on the SSN line. Faxing the form is the fastest option: the IRS typically responds within four business days. Calling the IRS international line at +1 (267) 941-1099 can produce same-day processing, though hold times can run past an hour. Mailing takes four to six weeks. The U.S. entity must be fully formed with the state before you apply, and the business name on the SS-4 must exactly match your state registration.
Do You Need Both
If you have employees, file federal tax returns, or want a business bank account, you need an EIN. Full stop. Whether you need a DUNS number depends on where you want your business to be able to borrow, buy on credit, or sell. Companies that plan to open trade accounts with major suppliers, apply for commercial loans, or bid on private-sector contracts with large enterprises generally benefit from having one, because the counterparty will look you up. Companies with no plans to seek commercial credit and no federal contracting ambitions can operate without one. And any business that assumed it still needed a DUNS number for federal work can skip that step and register for a UEI on SAM.gov instead.