Federal Tax Identification Number – EIN

An Employer Identification Number, also known as a Federal Tax Identification Number, is used to identify a US business entity. The Employer Identification Number is a nine digit number assigned to Corporations for tax filing and reporting purposes.

Who needs to have an EIN

An EIN will be required for a business to open a bank account. All employers with one or more part-time or full-time employees, must have an EIN. If you pay contractors, or anyone for services you may also need an EIN.

Your company must provide a statement that contains:

  • The location of the company's U.S. operations.
  • The name(s) and U.S. address(es) of the company's U.S. representatives.

The IRS states, the purpose of any company in obtaining a U.S. EIN is that the company plans to or is conducting business in the U.S. and will be filing a U.S. tax return.