An Employer Identification Quantity (EIN) is a nine-digit quantity assigned by the Inner Income Service (IRS) to companies working in the US. It’s used to determine the enterprise for tax functions and is required for opening a enterprise checking account, hiring workers, and submitting taxes. For instance, a enterprise referred to as “ABC Inc.” might have an EIN of 12-3456789.
EINs are important for companies as they permit them to meet their tax obligations, set up a separate identification from the proprietor, and entry sure monetary providers. Traditionally, companies have been required to acquire an EIN provided that that they had workers. Nonetheless, since 2011, all companies, no matter measurement or worker rely, are required to have an EIN.