A unique identification number assigned to a business by the IRS, used for tax reporting, invoicing, and opening business accounts.
An Employer Identification Number (EIN) is a nine-digit number assigned by the IRS to identify your business for tax purposes. It functions like a Social Security number but for your business. You may also hear it called a Federal Tax ID or TIN (Taxpayer Identification Number).
Most businesses need an EIN, whether you have employees or not. It is used on invoices, tax filings, bank accounts, and vendor forms.
You need an EIN if you have employees, operate as a corporation or partnership, file certain tax returns, or want to open a business bank account. Sole proprietors without employees can use their Social Security number, but getting an EIN is still recommended to keep personal and business finances separate.
Apply for free directly through the IRS website at irs.gov. The online application takes about 10 minutes and you receive your EIN immediately. You can also apply by mail or fax using Form SS-4. Avoid third-party services that charge a fee for what is a free process.
Many businesses include their EIN on invoices, especially for B2B work where the client may need it for their own tax reporting. It typically appears in your business information section at the top of the invoice alongside your business name, address, and contact details.
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