The entity’s Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States. It functions similarly to a Social Security Number (SSN) for individuals, serving as a taxpayer identification number. For example, this specific identifier is used to identify the corporation in its dealings with the IRS.
This number is crucial for several reasons. It allows the entity to open bank accounts, apply for business licenses and permits, and file taxes. Furthermore, it ensures compliance with federal regulations and facilitates accurate tracking of financial transactions by the government. Its historical context lies in the increasing need for standardized business identification as the U.S. economy grew and diversified.