Legal Entity Identifier (LEI) vs Tax Identification Number (TIN) in the US
The Legal Entity Identifier (LEI) is a standard identifier that provides verified data on legal entities and is registered on a centralized system, the Global LEI System. The Tax Identification Number (TIN) in the US includes a Social Security Number (SSN), which is issued to individuals, and an Employer Identification Number (EIN), which is issued to individuals or entities.
Legal Entity Identifier (LEI) in the US
The LEI is a 20-character alphanumeric code that is based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). LEI number references important information that offers transparency when participating in financial transactions such as trading with stocks, bonds, or forex.
LEI connects to key reference information that enables a clear and unique identification of legal entities participating in financial transactions on a global scale. Each LEI contains well-structured reference data categorized into 2 sections: Level 1 data – ‘who is who’ and Parental (Level 2) data – ‘who owns whom.’
Level 1 data includes entity registration details, such as legal name, number of registration, legal and HQ address, etc. Level 2 contains information about an entity’s ownership structure and thus answers the question of ‘who owns whom.’
Simply put, the publicly available LEI data pool transfers unstructured entity registration data into a standardized global directory, which helps to enhance transparency in the global marketplace.
How to get an LEI in the US?
An LEI number must be obtained through an LEI service provider, a Local Service Provider (LOU), or a Registration Agent. The Global LEI System (GLEIS) is designed to encourage competition between LEI issuers and registrators to benefit legal entities seeking to obtain an LEI. Generating a price for issuing and maintaining an LEI has therefore been left to the organizations themselves. This explains why some companies charge double the price of their competitors.
Where to find LEIs in the US?
Any interested party can access and search the complete global LEI data pool free of charge. You’ll be able to quickly source information on ‘who is who’ and ‘who owns whom.’
LEI Register – Number one Registration Agent worldwide
LEI Register is an official Registration Agent – we have been helping legal entities apply for new LEI codes, and transfer and renew existing LEI codes since early 2018. We have successfully pursued our goal of making the LEI registration process simple, automated, fast, and affordable. At LEI Register, we keep our profit margins low and believe in building long-term business relationships.
LEI Register has built a loyal customer base by offering the lowest prices on the market, all whilst keeping active 7 days a week customer support.
Tax Identification Number (TIN) in the US
U.S. taxpayer identification numbers include a Social Security Number (SSN), which is issued to individuals, and an Employer Identification Number (EIN), which is issued to individuals or entities. In addition, an Individual Taxpayer Identification Number (ITIN) is issued to individuals who are required to have a U.S. taxpayer identification number but who do not have one and are not eligible to obtain an SSN.
An Employer Identification Number (EIN) is also known as a federal tax identification number and is used to identify a business entity. It is also used by estates and trusts which have income that is required to be reported on Form 1041, US Income Tax Return for Estates and Trusts.
How to get a TIN?
Apply for an EIN with the IRS assistance tool. It will guide you through questions and ask for your name, social security number, address, and your “doing business as” (DBA) name. Your nine-digit federal tax ID becomes available immediately upon verification.
Where to find TINs in the US?
The US Taxpayer Identification Number may be found on several documents, including tax returns and forms filed with the IRS, and in the case of an SSN, on a social security card issued by the Social Security Administration.
United States TIN (2022) [online].
Available at: https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/United-States-TIN.pdf [Accessed 5th April 2022]