Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for tax filing purposes. It is also known as a Federal Tax Identification Number (TIN).

An EIN is required for a variety of reasons, including:

• Hiring employees – All businesses that hire employees must have an EIN.
• Opening a bank account – Most banks require an EIN to open a business account.
• Filing taxes – An EIN is required for filing certain business tax returns.
• Applying for business licenses and permits – Many state and local governments require an EIN for business licensing.
• Establishing credit – Businesses may need an EIN to establish credit with suppliers, lenders, and other vendors.

To obtain an EIN, a business must complete an application with the IRS. The application can be submitted online, by mail, or by fax. The process is free and typically takes a few minutes to complete.