Employer Identification Number (EIN)

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Definition of 'Employer Identification Number (EIN)'

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number (FTIN), is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses, sole proprietorships, and other entities for the purpose of identification. The EIN is used to report taxes, open business bank accounts, and file certain business forms.

The EIN is not the same as a Social Security number (SSN), which is a unique nine-digit number assigned to individuals by the Social Security Administration (SSA). The EIN is used for business purposes, while the SSN is used for personal purposes.

Businesses that are required to have an EIN include corporations, partnerships, limited liability companies (LLCs), and sole proprietorships. Sole proprietorships that do not have employees are not required to have an EIN, but they may choose to get one for convenience.

To apply for an EIN, you can use the IRS's online EIN application or file Form SS-4. The IRS will typically issue an EIN within 24 hours of receiving your application.

Once you have your EIN, you should use it on all of your business tax documents and correspondence with the IRS. You should also include your EIN on your business bank account applications and any other documents where you are required to provide your taxpayer identification number.

The EIN is a valuable tool for businesses of all sizes. It helps the IRS to identify businesses and track their taxes, and it can also be used to open business bank accounts and file certain business forms. If you are a business owner, it is important to get an EIN as soon as possible.

Here are some additional details about the EIN:

* The EIN is not the same as a business license or a tax registration number.
* The EIN is not required for all businesses. Sole proprietorships that do not have employees are not required to have an EIN.
* The EIN is valid for as long as the business exists.
* The EIN is not transferable to another business.
* If you lose your EIN, you can request a new one from the IRS.

The EIN is an important part of doing business in the United States. By understanding what the EIN is and how to get one, you can help your business run smoothly and comply with all applicable tax laws.

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