An employee identification number (EIN) is a nine-digit identifier that the Internal Revenue Service (IRS) assigns to businesses for tax purposes. Think of it as a Social Security number for a business. The EIN is commonly referred to as a Taxpayer Identification Number (TIN). It allows the IRS to track revenue generated by a business, as well as wages and payments from a business to employees and owners. It is important to apply for an EIN as soon as your business is registered because most banks will require an EIN to open a business bank account.
The application process for an EIN is very simple. It is free and only takes about 10 minutes to receive your EIN. You can apply with the IRS online, Monday through Friday 7am to 10pm Eastern Time.
