An employer identification quantity (EIN) is a novel nine-digit quantity assigned by the Inner Income Service (IRS) to companies working in america. It’s just 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, comparable 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 id theft and fraud. For instance, an EIN can be utilized to confirm the id of a enterprise when it’s making use of for a mortgage or opening a brand new checking account.
