What does EIN stand for? EIN stands for Employer Identification Number. It is a 9-digit number, formatted like 12-3456789, that the IRS assigns to businesses and other organizations for tax purposes. It works like a Social Security number for a business and is free to get from the IRS.
What does EIN mean at work?
An EIN identifies a business on tax forms. Employers use it on payroll tax filings and on the W-2s they give employees. Businesses also use it to open bank accounts, apply for licenses and fill out vendor forms.
You may hear other names for the same thing: FEIN (Federal Employer Identification Number), federal tax ID number or TIN (taxpayer identification number), although TIN is a broader term that also covers Social Security numbers.
As an employee, you’ll see your employer’s EIN on your W-2. As a freelancer or vendor, you may be asked for an EIN on a Form W-9.
Who needs an EIN?
The IRS generally requires an EIN if a business:
- Has employees
- Operates as a corporation or partnership
- Files certain employment, excise or alcohol, tobacco and firearms tax returns
- Has a Keogh retirement plan or works with certain trusts and estates
Multi-member LLCs usually need one. A sole proprietor or single-member LLC with no employees can often use their Social Security number, though many get an EIN anyway to keep their SSN private. Once a single-member LLC hires employees, it needs an EIN for payroll taxes. If you’re unsure about your situation, the IRS EIN page walks through each business type.
How to get an EIN
- Go to the official IRS website. Applying is free. Be wary of sites that charge a fee.
- Use the online application if your business is located in the US. You usually get the number at the end of the session.
- Alternatively, file Form SS-4 by fax or mail.
- Save the confirmation letter. You’ll need the number for banking and tax filings.
Examples of EIN in emails and messages
Vendor setup email: “Please send your W-9 with your business name and EIN so we can process payment.”
Bank checklist: “To open a business account, bring your formation documents and EIN confirmation letter.”
Accountant Slack: “We need a new EIN because the business changed from a sole proprietorship to a corporation.”
EIN vs SSN vs ITIN
| Number | Issued to | Issued by | Format |
|---|---|---|---|
| EIN | Businesses and organizations | IRS | XX-XXXXXXX |
| SSN | Individuals | Social Security Administration | XXX-XX-XXXX |
| ITIN | Individuals who need a tax ID but can’t get an SSN | IRS | 9XX-XX-XXXX |
How to use an EIN correctly
- Keep it secure. It’s less sensitive than an SSN, but share it only with trusted parties.
- Use the exact legal name with it. Mismatches can delay payments and filings.
- Know when you need a new one. Changing your business structure can require a new EIN.
- Only apply through the IRS. The official application is free.
Related terms
Browse more short forms in our Workplace Acronyms hub.
FAQ
What does EIN stand for?
EIN stands for Employer Identification Number, a 9-digit tax ID the IRS assigns to businesses and organizations.
Does it cost money to get an EIN?
No. Getting an EIN from the IRS is free. Be cautious of third-party websites that charge fees.
Is an EIN the same as a tax ID number?
An EIN is a type of taxpayer identification number used for businesses. People often call it a federal tax ID number.
Do sole proprietors need an EIN?
Not always. Sole proprietors without employees can often use their SSN, but they need an EIN if they hire employees or meet other IRS criteria.
Where can I find my employer’s EIN?
Your employer’s EIN appears on your Form W-2, in box b.
Sources
- IRS: Employer Identification Number
- IRS: About Form SS-4, Application for Employer Identification Number
This article is general information, not legal or tax advice. Check with a qualified professional for your situation.
