What is an EIN?

An EIN (Employer Identification Number) is a federal tax ID issued by the IRS. It identifies your business for tax purposes, similar to how a Social Security number identifies an individual.

Many businesses need an EIN—especially if you have employees, operate as an LLC or corporation, or open a business bank account. Some sole proprietors can use their SSN instead, but banks and partners often prefer an EIN.

You can apply for an EIN directly through the IRS at no cost. Requirements vary based on your entity type and plans.