ALL0-9ABCDEFGHIJKLMNOPQRSTUVWXYZ
Share This
Share
« Back to Glossary Index
Categories: General Tax Terms

Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for tax identification purposes. It is also known as a Federal Tax Identification Number.

An EIN is used by employers to report taxes, manage employee payroll, and facilitate the identification of a business entity for various federal tax obligations. All types of businesses, including corporations, partnerships, and sole proprietorships, may be required to obtain an EIN, especially if they have employees or operate as a corporation or partnership.

For example, when a new business hires its first employee, it must apply for an EIN to report employment taxes to the IRS. This number is also necessary for opening a business bank account and filing tax returns.

Related Articles:
  • Glossary: Taxpayer Identification Number (TIN)
    Taxpayer Identification Number (TIN): Your unique financial ID! It’s like a secret handshake with the IRS, making tax time smoother and keeping your money matters in check.
  • Glossary: Form SS-4
    Form SS-4 is your ticket to business bliss! It’s the application for an Employer Identification Number (EIN), helping you unlock the doors to entrepreneurship and tax fun!
  • Glossary: Foreign Tax Identification Number (FTIN)
    Foreign Tax Identification Number (FTIN) is your passport to smooth sailing in international tax waters! It helps tax authorities identify you, ensuring you stay in good standing while enjoying global adventures!
« Back to Glossary Index