EIN is an abbreviation for Employer Identification Number. It is also known as a Federal Tax Identification Number. An EIN is used by the Internal Revenue Service (IRS) in identifying a business for tax purposes.
Every business that has employees is required to obtain an EIN. This allows the IRS to identify the business and collect the appropriate taxes for which the business is liable. All charitable, religious and other nonprofit organizations also must obtain EINs, even if the organizations do not have employees.
To apply for an EIN, a business must file IRS Form SS-4. This form can be submitted online or by mail, telephone or fax.