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 identification purposes. The EIN is used by the IRS to track the business for tax reporting, including income, employment, and other federal taxes. It’s similar to a Social Security Number (SSN) for individuals, but for businesses. The EIN is required for businesses to file tax returns, open a business bank account, and hire employees. Most businesses, including sole proprietorships, partnerships, corporations, and nonprofits, must obtain an EIN to comply with federal and state regulations.
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