Ensure financial compliance with an EIN

A federal tax id number is a unique 9-digit number that's assigned to a business or organization by the internal revenue service (irs). it identifies your business for tax purposes and is formatted as: xx-xxxxxxx.

this number is generally necessary to pay your employees, open a business bank account, withhold taxes, complete w-9 tax forms as an independent contractor, or pay taxes.

eins are issued by the irs and used on federal tax forms. once your business has been assigned an ein, it never expires and can never be reissued to another business.

To secure your own ein, you'll need to navigate the irs rules and process, meet the requirements to apply directly, and manage the approval period.you'll need to fill out an application, also known as an ss-4 form, and you must be a “responsible party.” the irs defines a responsible party as the owner or individual who exercises effective control over the entity. government entities can also serve as responsible parties.

Having an ein means your business can hire employees, open a business bank account, apply for business loans, and establish credit. it shows that your business is legitimate, which builds trust with vendors and partners.

A ssn, or social security number, is a specific type of taxpayer identification number that's typically used to file taxes for an individual person. it can also be used to file taxes for a business if an ein isn't required for that business such as a single-member llc with no employees.even if an ein isn't required for your business, it's still a good idea to get one so you don't have to file taxes using your personal social security number, which can be a privacy risk.