DUNS Number vs EIN: Which One Do You Need for A2P 10DLC Registration?

Different identifiers govern your business reputation; the two most common are the DUNS and EIN numbers. While investigating DUNS numbers vs EIN, many questions pop into your mind, such as how these numbers work, whether my business needs both, or what if I only have one. Don’t worry! This blog answers all your questions. In this article, we will explain the difference between DUNS numbers for business and    EIN, how to get them, and help you find out which one is needed for the A2P 10DLC registration.

So, without further ado, let’s get started.

What is A2P 10DLC?

A2P 10DLC stands for Application-to-Person 10-digit long code. It is the messaging standard in the United States, which lets businesses send SMS and MMS via a 10-digit long code. A2P 10DLC is regulated by mobile carriers, and it ensures high message deliverability, prevents spam and protects consumers.

If a business wants to use A2P 10DLC, it has to register with TCR – The Campaign Registry and provide valid business information. Here is where EIN and DUNS numbers for business come into the picture. Let’s understand these two business identifiers in the next section.

What is a DUNS Number?

It is the unique nine-digit business identifier Dun & Bradstreet (a business credit bureau) provides to businesses. It stands for Data Universal Numbering System. The standard format of this number is “xx-xxx-xxxx.” This number verifies a business’s creditworthiness, tracks its financial health, and establishes credibility with suppliers, banks, and government agencies. In short, a DUNS number builds a business’s credit profile and reputation in the marketplace. This number is consistent, unique, and persistent even if your company’s structure changes.

What is the Purpose of a DUNS Number? Why is it Used?

Let’s check out why your business needs the DUNS number for company registration in the US.

1. Establish Business Credit

A DUNS number builds business’s credit profile with Dun & Bradstreet. A strong business credit score helps you secure loans, convince investors to invest in your business, and work with larger organizations.

2. Government Contracts

This number is required to bid for government contracts and grants.

3. Global Supply Chains

It helps build your business identity in the global database. A DUNS number is important for international trade as global companies use it to vet suppliers.

4. Build Business Reputation

A DUNS number verifies your business’s financial stability and legitimacy and builds your business reputation.

How to Obtain a DUNS Number?

Getting a DUNS number is simple and completely free. You need to follow a few simple steps to obtain a DUNS number.

• Before you apply to get a DUNS number, ensure you do not have one. To do so, you can use the DUNS number lookup tool to check if you’re already registered in the Dun & Bradstreet database.
  

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• If you’re not registered, visit the official website of Dun & Bradstreet to fill out the DUNS number application and obtain the DUNS number.
• You need to provide some basic details about your business, like its legal structure, primary industry, your company’s legal name, etc.
• Submit your application; you will usually receive a DUNS number within 30 days. If you want to fast-track the process to eight days, you need to pay $229.

What are the Best Practices to Get the Most Out of Your DUNS Registration?

If you want to maximize the benefits of your DUNS registration, you need to keep the following best practices in mind.

• Regularly update your business information whenever it changes to keep the information up-to-date.
• Use the DUNS number to build strong business credit.
• Keep checking your credit report regularly to find errors or any inaccuracies which could lower your score and hamper opportunities to get financing.
• Ensure you pay all bills on time to build a strong credit rating so that you can use the DUNS number to secure loans, financial situations, and business credit.

What is an EIN Number?

EIN stands for Employer Identification Number issued by IRS – Internal Revenue Service. It is also known as the FEIN, or Federal Employer Identification Number, which serves as the TIN or Tax Identification Number. An EIN number is also a nine-digit number but is used for tax purposes. Every year, millions of businesses file taxes, so it is challenging for the tax body and government to track each company.

No matter your business is a corporation partnership, or an LLC company registered in the US, you must have this identification code. Even though the federal government issues this number, it can change if your business changes its legal structure.

An EIN number is useful to open business bank accounts, hire employees, apply for business credit, and get permits for your business.

What is the Purpose of an EIN Number? Why is it used?

Let’s check out why your business needs an EIN for company registration in the US.

1. Tax Filing

It is used for business tax filings. As an employer, you’ve to pay taxes even if you’ve temporary staff. An EIN number lets you receive credit for these payments. You will receive tax benefits on it as per your unique small business setup.

2. Open Bank Accounts

Many US banks insist that your business must have an EIN number if you want to open a corporate bank account. It will ensure that your customers and vendors that you run a legit company. Also, using a separate corporate account will help you separate personal and business income. Therefore, it makes it easy to prepare taxes.

3. Get Business Licenses

If you have an EIN number, then it verifies to authorities that you have the proper credentials to run your business. In case you need any permits, licenses, loans, or to  open a business bank account, an EIN number is useful.

4. Hire Employees

An EIN number is required to hire employees, pay them, and handle payroll taxes.

How to Obtain an EIN Number?

Applying for an EIN number is a quick and easy process. Here are a few simple steps that you need to follow.

• Visit the official website of the IRS.
• Select the ‘Apply for an Employer ID Number’ option.
• Fill out the application with your business details.
• You will receive the EIN number instantly via email once your application is approved.

What are the Best Practices to Get the Most Out of Your EIN Registration?

If you want to get the most out of your EIN registration and maintain regular tax compliance, you need to implement the following best practices.

• Keep your EIN number secure and use it only for official purposes.
• Make sure all your business tax filings are accurate and up to date.
• Use an EIN number to simplify banking and payroll processes.
• If your business information, such as ownership structure or address, is changed, you must apply for a new EIN.
• Make sure all your business records are accurate, including business transactions, expenses, income, taxes paid, etc., to avoid audits and remain compliant with IRS regulations.

What are the Key Differences? DUNS number vs EIN

We have seen that DUNS and EIN are business identifiers, but different authorities issue them. Let’s check out the comparison between the DUNS number and the EIN.

Which One Do You Need for A2P 10DLC Registration?

For A2P 10DLC Registration, businesses must provide their legal business details, including a valid Tax ID. US-based businesses are required to use an EIN. Mobile carriers and The Campaign Registry use it to verify the legal existence of the businesses.

If you’re a US-based business and want to do A2P 10DLC registration, you will require an EIN.

Reason?

It verifies your business’s legal existence for tax and compliance. On the flip side, if you’re an international business which does not have an EIN, you can use a DUNS number as an alternative for registration.

Here are a few situations where the DUNS number is useful.

• If your business operates internationally and does not have an EIN.
• While verifying business creditworthiness for partnership.
• If your business is applying for government contracts or global supplier networks.

Generally, US-based businesses prefer EIN for A2P 10DLC registration because:

• It is directly issued by the IRS and recognized by US mobile carriers.
• It acts as the tax identifier, which ensures businesses are legally registered.
• EIN simplifies the compliance checks for the TCR and messaging platform.

So, if you’re a US-based business, EIN is a must for A2P 10DLC registration. On the other hand, if you operate internationally, you must check with your messaging provider to see if a DUNS number can be used instead.

When Should You Use Both a DUNS Number and EIN?

DUNS number and EIN both complement each other. They play an important role in the growth and lawfulness of your business. You must need an EIN number for tax-related and legal activities.

On the other hand, if you want to build a strong business credit profile and secure excellent opportunities with government agencies and large corporations, you need a DUNS number.

In short, if you’re a startup or a small business owner, both numbers are important to operate in compliance with US law and build a strong foundation.

In many scenarios, it is beneficial to have both the numbers – DUNS and EIN.

For example,

If you want to apply or have already applied for a business credit card, some lenders may check both numbers. Also, for A2P registration for large enterprises, some carriers may ask for both.

In short, if your business is registered in the US, it is a good practice to have both identifiers.

Common Mistakes to Avoid in A2P 10DLC Registration

Here are a few misconceptions about A2P 10DLC registration and ways to avoid it.

• One common misconception is that businesses that want to send a promotional text or mass text need to obtain consent from the customers. However, the reality is that businesses sending one-to-one or one-to-many text messages to customers, leads, or others must have a proper opt-in and opt-out process. Also, they must document the entire process for 10DLC registration.
• Some businesses think that verbal or informal consent will work but these days, carriers only accept tangible forms of opt-in like web forms, email, paper forms, etc., which they can clearly verify.
• Businesses must use clear language to collect opt-in, but some businesses do not use clear language to gather their contact’s consent. So, businesses need to include clear information regarding why they are collecting customers’ numbers, how they’ll use their numbers for SMS, ways to opt-out, and make the disclaimer easy to see. Also, opt-in should be optional.

If you want to learn more about A2P 10DLC Registration best practices, check our latest blog – 10DLC Registration Best Practices: Making Compliance Easy

Concluding Remarks

Although you have all the skills and expertise to succeed in your business, the legal and financial complexities of running a business can adversely impact your business. However, by registering EIN and DUNS numbers for business, you can set yourself on the right track from the beginning.

Both EIN and DUNS numbers empower business success. Most US businesses need an EIN number for A2P 10DLC registration. However, international businesses may use the DUNS number as an alternative. While these identifiers serve different functions, if you have registered for both numbers, it will provide improved business flexibility, financial benefits, and greater credibility.

If you are confused between the DUNS number vs EIN, you need to consider your business structure, long-term growth goals, and tax obligations. So, understand the difference properly and ensure you have the right registrations. It will help you simplify your business operations and take full benefit of A2P 10DLC messaging. Textdrip is an A2P 10DLC-compliant text messaging tool that helps businesses stay compliant with 10DLC regulations while planning and sending bulk text messaging campaigns. So, take a FREE trial of Textdrip and practice A2P 10DLC-compliant messaging.