An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses and other entities operating in the United States. It is similar to a Social Security number for individuals and is used to identify the entity for tax purposes and other official communications with the government.
Obtaining an EIN is essential for businesses that have employees, file excise taxes, or operate as corporations or partnerships. It is also required for opening bank accounts, applying for licenses and permits, and establishing business credit. By having an EIN, businesses can ensure accurate tax reporting, avoid penalties, and streamline their financial operations.