What is an employer identification number (EIN) ?
An Employer Identification Number (EIN) is a nine–digit number used to identify businesses for tax purposes. An EIN is required to open a business bank account, file taxes, hire employees, and apply for loans. It also provides businesses with a unique identifier that can be used to identify and track their financial transactions. An EIN is a simple and secure way to identify and protect businesses from identity theft and fraud. It also helps businesses to maintain separate financial records and ensure accurate reporting to the IRS.
Where do I obtain an EIN?
It is issued by the Internal Revenue Service (IRS) and is used to identify and track a business’s financial transactions with the government. All businesses, including sole proprietorships, partnerships, corporations, and limited liability companies (LLCs), must have an EIN.
Why is the EIN important?
Any business that plans to hire employees, file taxes, or open a business bank account must have an EIN and it is also important for businesses to keep their EIN up–to–date and inform the IRS of any changes in ownership or structure.