GlossaryUS
What is an EIN?
Employer Identification Number (federal tax ID)
Short answer
An EIN is the 9-digit federal tax ID number the IRS assigns to businesses. Your US company’s bank accounts, payment platforms and federal filings run on it, and the IRS never charges a fee for it.
Explained
The company must be formed in its state before applying. The application is Form SS-4, which names the person who ultimately controls the company as the responsible party. The IRS online application cannot be used if the principal place of business is outside the US or the responsible party has no SSN or ITIN; international applicants apply by phone, fax or mail.
A business should have only one EIN, and only one EIN can be issued per responsible party per day. An EIN is never cancelled; when the business closes and its IRS account is closed, the number is deactivated.
Good to know
- The IRS never charges a fee for an EIN and warns against websites that do.
- Nominees acting with limited authority during formation cannot be named as the responsible party.
- IRS processing times vary by season and application method; no fixed timeline can be promised.
- A foreign-owned single-member LLC files its annual Form 5472 under the LLC’s own EIN.
Official sources
- IRS — Employer identification number
- IRS — Get an employer identification number
- IRS — Instructions for Form SS-4
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This page is general information, not legal or tax advice. Rules change; check the official source for the latest position or talk to us.
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