Do you find yourself mystified by all the identifier numbers and codes you are asked for while doing business? Let’s review some of these numbers to understand how they can help you.
Some Numbers Meet State or Federal Requirements
Most states require you to register and license your business and will typically assign it a registration number. In Washington, this number is called the Unified Business Identifier, or UBI. It’s also referred to as the tax registration number, business registration number, or business license number. You’ll use this number for many business transactions, including renewing your registration and license and paying any state or local taxes. Speaking of taxes, you’ll need an Employer Identification Number from the IRS if you have employees, operate your business as a corporation or partnership, or meet a few other criteria (you can see the whole list here). Your bank will ask for one when you open a business account, and it doesn’t cost anything, so it’s easiest to get one upfront. You can apply online through the IRS website and receive an EIN immediately once the system validates your information. Keep the EIN letter in your corporate book – it’s the only copy you will receive.
Other Numbers Are Recognized Internationally
For many years, the Dun & Bradstreet D-U-N-S Number was the identifier code for businesses. Introduced in 1963, the system assigns a random and unique nine-digit identifier for any business submitting its basic business information to the free portal. The number itself has no value; however, it identifies your business in the Dun & Bradstreet database, which acts as a credit profile for your potential partners. You may be asked for your D-U-N-S Number (it’s also referred to simply as DUNS) when applying for credit, bidding on or executing a contract, or other business transactions like supply chain or risk management assessments. You can manage your basic business information via the Dun & Bradstreet portal, but your full profile (called a Live Business Identity) is developed by the company over time through a proprietary process using your company’s public data. Much like your personal credit, your basic business credit information and scores are available for free through their website. The D-U-N-S is the most widely used identifier system internationally.
You Need a UEI to Work With the U.S. Government
The United States government used to require a DUNS identifier for entities with which it did business. Since April 2022, they’ve switched to the Unique Entity ID (UEI) system administered through the SAM.gov website. Getting a UEI requires a SAM.gov login, but it does not require an entity registration. You should register your business as an entity if you plan to apply directly to government contracts or grant opportunities. If you work with businesses that received federal funds, they will need your UEI for the contract. Federal agencies like NSF require that organizations registering to use NSF’s electronic systems have a valid and active SAM registration and a valid UEI. Your best bet is to establish your state and local registration and business license, then your EIN, because you’ll need this information to apply for a UEI. I recommend speaking to your local Procurement Technical Assistance Center before you start to understand the system, whether you need registration along with a UEI, and to avoid the many potential challenges inherent in this complex system.
Making the Numbers Work
Consistent use of these identification systems helps you establish a robust business presence. That’s a necessary step towards building client confidence in your product or service. Obtain and protect the numbers your business needs carefully because they are part of its identity in the business community.