An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses operating in the United States. It’s akin to a Social Security Number for companies, used to identify them for tax purposes.
EINs are crucial for businesses as they enable them to file taxes, open bank accounts, hire employees, and comply with various legal requirements. Historically, the introduction of EINs in 1962 streamlined tax administration and improved the accuracy of tax returns.