What is EIN?
EIN stands for Employer Identification Number. It is a unique identification number assigned by the Internal Revenue Service (IRS) to businesses and other entities for tax purposes.
An EIN is a nine-digit number that is used to identify a business when reporting taxes to the IRS. It is also used for other purposes, such as opening a business bank account or obtaining business licenses and permits.
Most businesses are required to have an EIN, including corporations, partnerships, and sole proprietorships with employees. Some other entities that may need an EIN include non-profit organizations, trusts, and estates.
Applying for an EIN is a free and simple process that can be done online, by mail, fax, or phone. The IRS issues EINs immediately for online applications and within a few days for other methods. Once obtained, an EIN is usually assigned to a business for its lifetime, unless the business undergoes certain changes, such as a change in ownership or legal structure, that require a new EIN to be issued.