An 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 for individuals, but instead identifies businesses for tax purposes. For example, large corporations, partnerships, and limited liability companies are typically required to obtain one.
This identifier is crucial for businesses as it allows them to file taxes, open bank accounts, apply for business licenses and permits, and hire employees legally. It also helps the IRS track a business’s tax obligations and ensures compliance with federal tax laws. In the context of established companies, knowing this identifier facilitates accurate record-keeping and financial transparency.