Employer Identification Number | Meaning

What is Employer Identification Number? 

Employer Identification Number or EIN is a unique number given to the business entities to be easily identified by the Internal Revenue Service (IRS). This unique identification number is used to file the taxes by the employers.

The EIN consists of nine digits, and it appears in the format XX-XXXXXXX. If you are in need to own a business, you can apply for this EIN directly through the IRS. If you own an organization even with one employee, you are eligible for EIN.

What are the benefits of an employer identification number?

EIN numbers are unique to each business, and this number never expires, or the same set of the EIN will never be issued to two same or different businesses. Without EIN, you can’t be able to operate your business. Some of the benefits are:

  • To hire and pay employees, an organization must need an EIN.
  • The EIN is needed to open a bank account, invest cash, and obtain credits.
  • It is needed to fill the business tax and also to register the state tax.

What form of businesses can apply for EIN?

All forms of business can apply for EIN, including non-profitable organizations (NPO), Government agencies, Limited Liable Companies (LLC), NGOs, and much more.

The Employer Identification Number is not as sensitive as the Social Security Number, and it can be distributed for business purposes online and even through print publications.

Applying for an EIN is very easy; you can get the applications online via the IRS website. Not only is EIN used for reporting tax, but it also helps in opening bank accounts and also to apply for credits.

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