March 30, 2023


Federal Tax ID (EIN)

The easy way to get your EIN

A federal tax ID, also known as an Employer Identification Number, is a unique number assigned to your business by the IRS.

Essential for most businesses

If your business will have employees or file taxes, you probably need a federal tax ID from the IRS.

Often required for business banking

Banks usually ask for a federal tax ID before opening a business bank account or line of credit.

Helps shield against identity theft

Sole proprietors may use a federal tax ID to help keep their own Social Security numbers private.

What is a federal tax ID?
A federal tax ID (officially known as an Employer Identification Number or EIN) is a unique number assigned to a business or organization by the IRS. A business uses its federal tax ID much like a person uses a Social Security number.

Who needs a federal tax ID?
The IRS requires most business entities to use a federal tax ID (EIN)—corporations, partnerships, most LLCs, and some sole proprietorships. A federal tax ID offers other benefits, even when it isn’t required by the IRS. For instance, it can help protect against identity theft, and it’s often a prerequisite for opening a business bank account.