Q: What is EIN verification?

EIN verification confirms that a business’s Employer Identification Number (EIN) matches official IRS records. An EIN is a nine-digit number issued by the IRS and is equivalent to a Social Security number (SSN), just for a business. It’s essential for verifying business identity and ensuring compliance when doing due diligence and proper background checks on another company, for example, for KYB compliance, because it shows if a company is legally operating within the US.

Q: When should you verify an EIN as part of KYB?

You should check and validate EINs during: Initial onboarding of new partners, suppliers, or customers. Opening business bank accounts or credit lines. Ongoing due diligence , especially if ownership or structure changes. This helps build trust in B2B relationships and detect fraudulent entities as early as possible while complying with KYB/AML requirements.

Question 1

What is EIN verification?

Accepted Answer

EIN verification confirms that a business’s Employer Identification Number (EIN) matches official IRS records. An EIN is a nine-digit number issued by the IRS and is equivalent to a Social Security number (SSN), just for a business. It’s essential for verifying business identity and ensuring compliance when doing due diligence and proper background checks on another company, for example, for KYB compliance, because it shows if a company is legally operating within the US.

Question 2

Why do I need to verify an EIN?

Accepted Answer

Verifying an EIN helps prevent partnering with illegitimate businesses, ensures tax compliance, and is often required when onboarding clients, third-party service providers, or partners, as part of KYB onboarding. EIN verification helps assess risks more effectively, as an invalid EIN could potentially be treated as a sign of fraud and show that the company is operating illegally or is illegitimate.

Question 3

When should you verify an EIN as part of KYB?

Accepted Answer

You should check and validate EINs during:

Initial onboarding of new partners, suppliers, or customers.
Opening business bank accounts or credit lines.
Ongoing due diligence, especially if ownership or structure changes.

This helps build trust in B2B relationships and detect fraudulent entities as early as possible while complying with KYB/AML requirements.

Question 4

How does iDenfy’s EIN verification tool work?

Accepted Answer

iDenfy’s KYB platform includes a fully automated EIN verification feature, along with other built-in options for verifying company stakeholders, conducting AML screening, and validating company addresses via custom workflows. You can build your own KYB onboarding process using flexible templates that align with your industry, compliance requirements, and risk profile.

You can enable EIN verification on the same KYB dashboard, and our software will then show the user’s EIN status as either “Not Checked” or “Verified.” Our system matches the data against verified databases to instantly confirm the EIN number’s validity.

Question 5

How fast is the EIN verification process?

Accepted Answer

Verification results are delivered instantly with iDenfy’s EIN lookup service. No extra manual input or waiting period is required. While not directly affiliated with the IRS, our tool uses authoritative data sources to provide accurate, up-to-date EIN information without having to integrate an extra EIN verification service or look up multiple databases online. All verification requests are encrypted and handled in compliance with industry-standard security protocols.

EIN Verification and Company Lookup for KYB

Trusted by over 1,000+ businesses

Why do you need an EIN verification solution?

Multiple built-in options to verify EIN/TIN data

Identify high-risk entities

Order and generate reports

Verify and screen associated individuals

A single EIN search tool. Versatile across industries.

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