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EIN (Employer Identification Number)

Also known as: EIN, federal tax ID, FEIN

A unique nine-digit number the US IRS assigns to your business for tax and identification purposes, like a Social Security number for your company.

What it is

An EIN is a nine-digit federal tax identification number issued by the IRS to identify your business. It functions like an SSN, but for your company.

Facts

Formatted as XX-XXXXXXX (nine digits).
Issued free directly by the IRS, beware paid third-party filing services.
Required to hire employees, open a business bank account, and file business taxes.
Online applicants (with a valid US taxpayer ID) typically receive an EIN immediately.

Who it's for

Every US business, especially any that will hire, open a bank account, or operate as a corporation or partnership.

How it helps you

An EIN lets you separate business and personal finances, open a bank account, hire, and stay compliant with US tax filing, foundational admin every startup needs.

Caveats

Don't pay third parties for something the IRS provides free. Non-US founders without an SSN/ITIN must apply by fax/mail, which takes longer.

Conclusion

An EIN is basic but essential plumbing, get one free from the IRS right after forming your entity so you can bank, hire, and file taxes.

How it helps you

Your company's tax ID, needed to open a bank account and hire, and it's free straight from the IRS, so never pay for it.

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