An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses and organizations for tax filing purposes. It is similar to a Social Security number for an individual.
An EIN is primarily used for tax filing and reporting purposes. Some of the specific uses of an EIN include:
In summary, an EIN is used for tax-related purposes, opening bank accounts, obtaining business licenses, hiring employees, filing for tax-exempt status, reporting pensions, annuities, and certain trusts, reporting sales tax, reporting unclaimed property, and other purposes.
Obtaining an EIN is a simple process that can be done online, by mail, or by fax. Here are the steps to obtain an EIN:
It is important to note that once the EIN is assigned to a business, it will not change, even if the business ownership or structure changes. It is a permanent number for the life of the business.
In conclusion, obtaining an EIN is a simple process that can be done online, by mail, or by fax. It is a unique nine-digit number assigned by the IRS to businesses and organizations for tax filing purposes. It is important to keep your EIN safe as it will be needed for future tax filings and other business-related transactions.