What Is an EIN, and Do You Actually Need One?
An Employer Identification Number (EIN) is the nine-digit federal tax ID the IRS assigns to a business, similar in function to a Social Security Number, but for a company instead of a person. It's what banks, payroll providers, and the IRS use to identify your business on tax filings, bank accounts, and employment records.
You need an EIN if any of the following apply to you:
- You've formed an LLC, corporation, or partnership, even with no employees
- You plan to open a US business bank account
- You plan to hire employees
- You're a foreign-owned single-member LLC, required regardless of activity
- Your business files excise, alcohol, tobacco, or firearms tax returns
- You want to keep your Social Security Number off business paperwork and vendor forms