EIN (Employer Identification Number)
An EIN, or Employer Identification Number, is a unique nine-digit number assigned by the IRS to identify a business entity for tax purposes. Also called a Federal Tax ID Number or FEIN.
What Is an EIN?
An Employer Identification Number (EIN) is a nine-digit number (formatted as XX-XXXXXXX) that the IRS assigns to businesses, nonprofits, trusts, estates, and other entities. It functions like a Social Security Number but for your business.
Who Needs an EIN?
You need an EIN if you:
Sole proprietors without employees can use their SSN, but getting an EIN is recommended to protect your personal information.
How to Get an EIN
1. Apply online at IRS.gov (free, instant — available Mon-Fri, 7am-10pm ET)
2. Apply by fax using Form SS-4 (response in ~4 business days)
3. Apply by mail using Form SS-4 (response in ~4 weeks)
The online application is the fastest method and provides your EIN immediately upon completion.
EIN vs SSN vs ITIN
Cost
Getting an EIN from the IRS is completely free. Beware of third-party sites that charge fees for EIN applications — you can always apply directly with the IRS at no cost.
Related Terms
A 1099 form is an IRS tax document used to report income received outside of traditional employment. If you're a freelancer, independent contractor, or business that received payments of $600 or more from a client, you'll likely receive a 1099-NEC (or other 1099 variant) to report that income.
A maturity date is the date on which a financial instrument — like a loan, bond, or certificate of deposit — comes due and the principal must be fully repaid or the investment is returned. It marks the end of the term. On the maturity date of a loan, the final payment is made. On the maturity date o
Accounts receivable (AR) is the money owed to your business by customers who have received goods or services but haven't paid yet. It's listed as a current asset on your balance sheet because it represents cash you expect to collect soon.
Cash flow is the movement of money in and out of your business over a specific period. Positive cash flow means more money is coming in than going out. Negative cash flow means you're spending more than you're earning. It's the lifeblood of any business — you can be profitable on paper and still go