An Employer Identification Number (EIN) is a nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purpose of identification. It is similar to a social security number for an individual.
EINs are used by the IRS to identify taxpayers who are required to file various business tax returns. They are also used by banks to verify the identity of a business when opening a new bank account, by credit reporting agencies to identify businesses when reporting credit information, and by state tax agencies to identify businesses that are required to pay state taxes.
It is important to have an EIN for a business because it is used to identify the business for tax purposes. Without an EIN, a business may have difficulty opening a bank account, obtaining credit, or filing tax returns. It is also important to use the correct EIN when dealing with the IRS and other government agencies, as using the wrong EIN can cause problems with tax compliance and other regulatory issues.