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What is EIN?

The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for identification.

Why need an EIN?

There can be many reasons to require an EIN. Some of the most common are listed below:

Decrease or eradicate U.S. withholding taxes on certain sorts of income (e.g., payments for services or goods sold)

Opening a U.S. checking account

Opening a U.S. PayPal account

Report all tax remittances to the IRS (e.g., tax, payroll.)

File a U.S. business income tax return

Appoint U.S. employees or U.S. subcontractors

Claim an exemption under the Canada-US settlement from U.S. income taxes on U.S. business profits

Export goods across the border (U.S. customs will demand an EIN)

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