EIN (Employer Identification Number)

What Is an EIN?

An Employer Identification Number (EIN), also called a Federal Tax Identification Number, is a unique nine-digit number issued by the Internal Revenue Service to identify business entities, trusts, estates, and certain other organizations for federal tax purposes. The EIN format is XX-XXXXXXX. It functions for businesses much like a Social Security Number functions for individuals.

When an EIN Is Required

• The business has employees - It operates as a corporation, partnership, or multi-member LLC - It files employment, excise, or alcohol, tobacco, and firearms tax returns - It withholds taxes on income (other than wages) paid to a non-resident alien - It administers a Keogh plan - It maintains a trust, estate, real estate mortgage investment conduit, nonprofit, or farmers' cooperative

How to Obtain an EIN

The IRS issues EINs at no cost. Applicants may apply online at IRS.gov for immediate issuance (international applicants must apply by phone, fax, or mail), file Form SS-4, or work through a third-party designee. Only one EIN is issued per responsible party per day. Banks require an EIN to open business accounts, and most state and local agencies require it for registration. Single-member LLCs without employees may use the owner's SSN or obtain an EIN; obtaining one is generally recommended to protect privacy and reinforce the entity's separateness.