What does EIN stand for? The letters mean Employer Identification Number, a nine digit number the Internal Revenue Service assigns to a business so it can be identified on federal tax returns and payroll filings. Think of it as a Social Security number for a company.
The name is a little misleading. You do not need employees to get one. Corporations, partnerships, many limited liability companies, nonprofits, trusts and estates use an EIN too, and banks often ask for it before they open a business account.
Quick facts
Stands for
Employer Identification NumberAlso called
Federal Tax Identification Number, FEIN or federal tax IDIssued by
The IRSFormat
Nine digits written XX-XXXXXXXType
Initialism, said E I NUsed on
Tax returns, W-2 and 1099 forms, bank and loan applicationsNot to be confused with
SSN, ITIN, state tax ID numbers
What does EIN stand for on a tax form?
Here is how the name splits apart:
| Letter | Word | Clue it gives |
|---|---|---|
| E | Employer | The business or organization that files taxes |
| I | Identification | A unique label the IRS uses to match records |
| N | Number | Nine digits, with a hyphen after the first two |
On paper it looks like 12-3456789. The number stays with the business for life. It is not reused for another company, even if the first one closes. Letters spoken one at a time, like these, form an initialism, a term covered in what is an acronym.
Who needs an EIN
The IRS generally expects a business to have one if it does any of these things:
- Hires employees and runs payroll
- Operates as a corporation or a partnership
- Files certain excise, employment or alcohol, tobacco and firearms tax returns
- Is a multi member LLC, or a single member LLC with employees
- Is a nonprofit, trust, estate or certain retirement plan
A sole proprietor with no employees can often use a personal Social Security number instead. Many still get an EIN so they do not have to hand out that personal number to clients and vendors. A business that changes its legal structure, for example from a sole proprietorship to a corporation, usually needs a new EIN.
Where you will see the letters
Once you know the meaning, the letters show up all over business paperwork.
On a vendor form: "Payee EIN or SSN: ____" The company paying you wants your tax number so it can report the payment on a 1099 form at year end.
- Bank applications: a business checking account almost always asks for it.
- Payroll: the employer's EIN prints on every W-2.
- Loan and credit forms: lenders use it to look up the business.
- State licenses: many state agencies ask for the federal number alongside their own.
For more letters that come up when you run a company, browse the business acronyms section.
How a business gets one
The IRS issues the number free of charge. Owners usually apply online through the IRS website, where the number is often given right away at the end of the session. Paper and fax applications use Form SS-4 and take longer. Some international applicants can also apply by phone.
Watch out for outside services that charge a fee to file the same form. They are not required, and the IRS itself does not charge. Once issued, the business receives a confirmation letter, often called the CP 575 notice, that is worth keeping with its formation papers.
EIN vs SSN vs ITIN
All three are taxpayer identification numbers, but they belong to different people and things.
- EIN: belongs to a business or organization. Format XX-XXXXXXX.
- SSN: a Social Security number belongs to a person and is issued by the Social Security Administration. Format XXX-XX-XXXX.
- ITIN: an Individual Taxpayer Identification Number goes to a person who must file taxes but cannot get an SSN.
You may also hear TIN, the umbrella term for any of these. A state tax ID is a separate number from your state revenue office and does not replace the federal one. Payroll taxes tied to the EIN include the FICA withholding for Social Security and Medicare.
Other things EIN can mean
Outside tax forms, the same three letters turn up in a few other places, so context matters:
- Ein (German): the word for "one" or "a," written as a word, not in capitals.
- Equipment or employee numbers: some companies use EIN as an internal label for an equipment or employee ID.
On anything to do with taxes, payroll or business banking, assume the Employer Identification Number.
Questions people ask
Is an EIN the same as a tax ID number?
Yes, for a business. The EIN is the federal tax ID number, and people often call it a FEIN or federal tax ID. A state tax ID is a different number.
Can I look up a company's EIN?
There is no public lookup for every business. Public companies list theirs in certain filings, and nonprofits share theirs on tax forms. Otherwise, you can ask the company for it, usually on a W-9 form.
Does an EIN expire?
No. The number belongs to the business permanently, even if it stops operating. The IRS can close the account, but it does not hand the number to anyone else.
Do I need an EIN for a side business?
Not always. A sole proprietor with no employees can usually file using a Social Security number. Some people get an EIN anyway to keep their personal number private.
How do you say EIN?
Say each letter: E I N. It is an initialism, so no one turns it into a spoken word.