EIN (Employer Identification Number)
An EIN is a 9-digit number (format 12-3456789) that the IRS assigns to a business or other entity for federal tax filing and reporting. It is also called a Federal Tax ID Number or FEIN.
In plain terms
An EIN identifies a business to the IRS the way a Social Security number identifies an individual. Businesses use it to file taxes, hire employees, and open bank accounts. It is issued free by the IRS and is permanent - once assigned, an EIN is never reused or reassigned to another entity.
Who needs one
You generally need an EIN if you hire employees, operate a partnership or corporation, or file certain employment or excise tax returns. Sole proprietors and single-member LLCs with no employees can often use the owner's SSN instead, though an EIN is still recommended.
Related terms and guides
- What is an EIN? (full explainer)
- How to get an EIN (step-by-step)
- Can you get an EIN without an SSN?
- ITIN · Responsible party
- What is an ITIN? · How to form an LLC
- Back to the glossary
Source
IRS - About Form SS-4 and Get an Employer Identification Number.
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