An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax purposes. EINs are used by businesses, including corporations, partnerships, limited liability companies (LLCs), and other entities, for a variety of tax-related purposes, including:

• Filing business tax returns: EINs are used to identify the business entity on tax returns, including annual income tax returns, employment tax returns, and excise tax returns.
• Hiring employees: EINs are required for businesses that hire employees in the United States, and are used to report wages, taxes, and other information related to employee compensation.
• Opening bank accounts: EINs are often required by banks when businesses open a bank account in the name of the business.
• Applying for business licenses: Many businesses are required to have an EIN to apply for business licenses and permits.
• Applying for loans: EINs are often required when businesses apply for loans, including business loans, lines of credit, and other types of financing.

EINs are free to obtain and can be applied for online through the IRS website, by mail, or by fax. It’s important to note that EINs are confidential and should only be used for tax purposes. Misuse of an EIN can result in tax fraud and other serious consequences.