A Tax ID Number for business, most commonly referred to as an 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. Think of it as a Social Security number for your business. It’s crucial for identifying a business entity for tax purposes and is required for a variety of operations, from opening a business bank account to hiring employees. Obtaining an EIN is a fundamental step for most new businesses. Whether you're forming an LLC in Delaware, a C-Corp in California, or a sole proprietorship in Texas, understanding the requirements and process for securing this number is paramount. This guide will walk you through what a business tax ID is, why you need one, and how to get it, ensuring your business complies with federal regulations from the start.
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