Employer Identification Number
Applicable to the United States, an Employer Identification Number or EIN (also known as Federal Employer Identification Number or (FEIN)) is the corporate equivalent to a Social Security Number, although it is issued to anyone, including individuals, who has to pay withholding taxes on employees. Also known as the Tax Identification Number (TIN), Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, the EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. When the number is used for identification rather than employment tax reporting, it is usually referred to as a TIN, and when used for the purposes of reporting employment taxes, it is usually referred to as an EIN. This article will use the latter term.
Also called a federal tax identification number, it is granted to a business by the Internal Revenue Service. It can be used for a variety of purposes, with the most important one being the filing of tax returns. It is also used for opening business accounts and applying for business licensing. Not all businesses need an EIN. A business needs one if it has employees or is classified as a corporation or partnership. An EIN is also required if a business has to file an employment or excise tax return. Businesses that file alcohol, tobacco, and firearms tax returns need these numbers as well. An employer identification number is also required for a business that withholds taxes on income that is paid to non-resident aliens. This excludes regular wages, however. Businesses that have Keogh plans and involvement in certain trusts, IRAs, non-profits, farmers’ cooperatives, and real estate mortgage investment conduits need EINs as well. Applying for an employer identification number is pretty
