An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses operating in the United States. It is also known as a Federal Tax Identification Number or an FEIN. An EIN is used to identify a business entity for tax purposes and is required for businesses to file various tax forms, including income tax returns, employment tax returns, and excise tax returns.
Obtaining an EIN is essential for businesses as it allows them to comply with tax laws and avoid penalties. Additionally, having an EIN can provide legitimacy and credibility to a business, as it demonstrates that the business is registered with the IRS and is operating legally.