What is a EIN number and why does your business need one? An EIN (Employer Identification Number) is a unique nine-digit tax ID number assigned by the IRS to identify your business entity for tax reporting purposes.
A tax ID number is a broad term that includes SSNs, ITINs, and EINs. An EIN is specifically the tax ID number used for businesses, estates, and trusts. Every multi-member LLC and any business with employees must have one.
You need this number to open a business bank account, hire employees, apply for business licenses, and file your federal tax returns. It also protects your personal Social Security Number from identity theft.
No, your EIN never expires. Once the IRS assigns an EIN to your business, it remains the permanent federal taxpayer identification number for that entity, even if the business never files a return.
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