What Is an Employer Identification Number (EIN)?
An Employer Identification Number (EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) to identify businesses for tax purposes. Think of it as a Social Security number, but for your company. It usually follows this format: 00-1234567 and is used to track tax obligations and filings related to employment and business operations.
Why Your Business Needs an EIN
Also known as a Federal Employer Identification Number (FEIN), this number is essential for most tax documents and business-related activities. The IRS uses the EIN to monitor your business’s tax records, employment tax payments, and other filings. It also serves as an official identifier when interacting with government agencies, financial institutions, and payroll providers.
Some states may issue their own identification numbers for tax purposes, but many rely on the EIN provided by the IRS.
You’ll need your EIN when:
- Opening a business bank account
- Applying for permits or business licenses
- Submitting tax documents
- Hiring employees
- Using payroll software like Beyond, which helps ensure proper tax reporting and compliance
If you’ve misplaced your EIN, you may be able to locate it on prior tax returns, payroll records, or through your business’s credit profile.
How to Apply for an EIN
Getting an EIN from the IRS is fast and simple, it can usually be done online in just a few minutes. Once obtained, it’s important to keep your EIN secure and organized, as you’ll use it frequently when managing payroll, filing taxes, or working with services like Beyond to handle HR and compliance tasks.