What an EIN is

An Employer Identification Number is a federal tax identification number issued by the Internal Revenue Service to identify businesses and certain other entities. Some businesses need one because of their structure, employees, or tax filings; others may obtain one for practical reasons such as banking.

What an EIN is not

  • It is not a state entity filing.
  • It is not a business licence.
  • It is not a sales tax permit.
  • It is not proof that a business may operate in a city or regulated industry.
  • It does not replace a Social Security number or individual taxpayer identification number for every purpose.

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Apply through the IRS

The IRS states that an EIN can be obtained free directly from the agency. Be cautious with search results and paid services that make a free federal application look like a required commercial purchase.

Open the official IRS EIN page

Sequence matters

When forming an entity, use the exact legal name and responsible-party information required by the IRS. If ownership or structure changes later, check the IRS guidance on whether a new EIN is required rather than assuming the old number follows every change.