Employer Identification Number (EIN)
Corporations, most LLCs, and all businesses with employees must have this IRS-issued identifier.
Much like a Social Security Number, an Employer Identification Number (EIN) is a federal nine-digit number that identifies a business entity. The Internal Revenue Service (IRS) issues EINs and requires their use on all tax filings during the entire life of a business.
The IRS generally requires the following types of businesses to obtain an EIN:
- All corporations
- All Limited Liability Companies (LLCs) with more than one member
- Any business that hires employees, including sole proprietorships and single-member LLCs
Many nonprofit organizations, as well as trusts and certain co-ops, must also have an EIN. If a business has changed its formation type or emerged from bankruptcy, it is typically required to apply for a new Employer Identification Number (EIN).
For many business owners, obtaining an EIN is one of the first things they do after incorporating or forming an LLC. Along with tax filings, businesses often need an EIN in order to:
- open business checking accounts
- establish accounts with certain vendors
Sometimes you'll see the Employer Identification Number referred to as a Tax Identification Number (TIN) or Federal Employer Identification Number (FEIN). As a general rule, it's good for all businesses, with the exception of sole proprietorships without employees, to have an EIN.
The Company Corporation can help.
The Company Corporation can obtain an Employer Identification Number (EIN) from the IRS on your business's behalf. The process is fast, easy and cost-effective.
It's important to note that along with an EIN, certain states also require companies to obtain a state tax identification number. The Company Corporation can help you with this requirement, as well as many of your other business compliance needs.
Get more details about your Employer Identification Number (EIN) in our Frequently Asked Questions section.