Frequently Asked Questions
What is an EIN?
The term EIN is commonly used interchangeably with TIN. A TIN, otherwise known as a Tax Identification Number, is a unique number issued to a business, person, or other legal entity. There are several types of Tax Identification Numbers, such as an Employee Identification Number (EIN), a Social Security Number (SSN), or an Individual Tax Identification Number (ITIN).
These unique nine-digit numbers are used by the Internal Revenue Service (IRS) and many other institutions such as banks and government entities to help identify a person, business or other legal entity.
When do businesses need an EIN?
Businesses need an EIN for almost everything they do. Whether you form a business entity, a trust, operate as a sole proprietor, or are self-employed, we recommend all business owners not wishing to use their Social Security Number as their TIN apply for an EIN as soon as they begin to operate.
What are EINs used for?
Whether operating as a sole proprietor, self-employed or as a business entity, EINs are used almost daily. From filing a tax return or submitting a document to the IRS (or other government entity), to opening a bank account, or applying for a loan or credit, EINs are used to identify the individual or business providing the record.
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