what is an employer identification number
An Employer Identification Number (EIN) is essentially a unique nine-digit identifier assigned by the Internal Revenue Service (IRS) to businesses and other entities operating in the United States. It serves as a distinct identifier for tax purposes, similar to how a social security number functions for individuals. Businesses use the EIN when filing taxes, applying for business licenses, opening a bank account, and handling other financial and legal transactions. In essence, it's a crucial tool that helps the IRS keep track of various entities for taxation and regulatory purposes.