An Employer Identification Number or EIN is one of five types of Taxpayer Identification Numbers, or TINs, issued to American citizens or businesses. An EIN is used by businesses to report taxes to the Internal Revenue Service (IRS). Any business with employees will need an EIN.

Who Assigns EINs and What are They Used for?

The IRS assigns EIN numbers to businesses free of charge. EINs, also referred to as a Federal Tax Identification Numbers, are created to identify businesses to the IRS.

Who needs an EIN?

Businesses need EIN numbers to report tax information, open business bank accounts etc. Businesses can be either a self-employed individual acting as a business or a larger business with employees. Not all businesses need an EIN.

How do I Know my Business Needs an EIN?

The IRS has a checklist online to determine if you need an EIN number. See the Resources section for a link. Typically if you have employees, have an employee savings plan, work with trusts or estates, or withhold taxes, your business will need an EIN.

How to Receive an EIN

Businesses can easily apply for an EIN number by phone, fax, mail or by completing an application online with the IRS. See the Resources section for a link.

Why not use Your Social Security Number (SSN)?

Businesses without employees are not required to have an EIN. However there are several advantages to having and using an EIN number over an individual's SSN, including identity security, being able to open a business account and buying products solely for your business.

Source:

Internal Revenue Service

National Institute of Standards & Technology

Banking Questions

Resource:

Do you Need an EIN?

How to Apply for an EIN