An employer identification quantity (EIN) is a singular nine-digit quantity assigned by the Inner Income Service (IRS) to companies working in the US. It’s much like a Social Safety quantity for people and is used to establish the enterprise for tax functions. An EIN is required for companies which have staff or that file sure tax returns, similar to excise or employment tax returns.
An EIN is necessary as a result of it permits companies to open financial institution accounts, apply for licenses and permits, and file taxes. It additionally helps to guard companies from identification theft and fraud. For instance, an EIN can be utilized to confirm the identification of a enterprise when it’s making use of for a mortgage or opening a brand new checking account.