Glossary
What is EIN (Employer Identification Number)?
An Employer Identification Number is a nine-digit number the IRS assigns to identify a business for tax purposes, similar to a Social Security number for an individual. Corporations, partnerships, multi-member LLCs and businesses with employees generally need one, and sole proprietors can obtain one as well. EINs are free from the IRS. Lenders use your EIN to verify your business, pull business credit reports and match tax records.
Example
A new LLC applies for an EIN online with the IRS before opening a business bank account.
Related terms
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