Legal Definitions - Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a unique nine-digit number given to businesses in the United States. It is also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN). The EIN is used by the Internal Revenue Service (IRS) to identify businesses for tax reporting and compliance.

Businesses can apply for an EIN online, by phone, fax, or mail. The application must be filed after the business has been formally created but before it begins day-to-day operations. The following information needs to be provided in the application:

• The type of business entity
• The reasons for applying (new business, change of organization, IRS withholding requirement compliance)
• The start or acquisition date
• The principal industry of the business

Businesses require an EIN for various purposes, including:

• Hiring and paying employees
• Opening bank accounts and obtaining loans
• Filing taxes

Examples of businesses that require an EIN include:

• A business with employees
• A partnership or corporation
• A business that files excise taxes
• A business that withholds taxes for non-wage income paid to a nonresident alien
• A sole proprietorship with employees
• A single member Limited Liability Company (LLC) with employees
• A nonprofit organization

For further information about the EIN, please visit the .