What is an EIN?
The Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for identification purposes. The EIN is used to identify tax accounts of employers and others with no employees.
The first two digits in the EIN sequence are traditionally separated from the remaining seven digits by a dash. For example, 12-3456789. Unlike Social Security numbers, EINs are not considered sensitive information and businesses freely distribute them publicly.
When is an EIN Required?
Sole proprietorships and single-member LLCs only need an EIN if they have employees. Multi-member businesses like corporations and LLCs can obtain multiple EINs depending on operations. Large corporations may only require one for the entire entity. EINs establish tax obligations and identification for various business structures.
Do EIN Numbers Always Have 9 Digits?
The IRS assigns a unique nine-digit number to US businesses called an Employer Identification Number (EIN). The EIN identifies tax accounts. The format is XX-XXXXXXX with a dash between the first two and last seven digits. Unlike Social Security numbers, EINs are public information.