An Employer Identification Number (EIN), also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number, is a unique nine-digit number assigned by the IRS to businesses and other entities for tax reporting purposes. 

It functions similarly to a Social Security Number (SSN) for individuals but is used for business-related activities. Here’s a quick rundown of what it’s used for:

1. Tax Reporting: EINs are used to report taxes and other financial activities. Businesses use them when filing federal tax returns, such as income tax returns, employment tax returns, and excise tax returns.

2. Hiring Employees: If your business plans to hire employees, you’ll need an EIN to handle payroll taxes and report employee earnings.

3. Opening a Business Bank Account: Most banks require an EIN to open a business bank account.

4. Applying for Business Licenses: Certain business licenses and permits may require an EIN.

5. Business Identification: It’s used to identify your business to the IRS and other governmental agencies, and it’s often needed when applying for business loans or credit.

Overall, an EIN helps streamline the process of handling taxes and other business-related financial activities.

Getting an Employer Identification Number (EIN) from the IRS is a straightforward process. Here’s a step-by-step guide:

1. Determine Eligibility: Make sure you need an EIN. Typically, you’ll need one if you’re starting a business, hiring employees, or need to pay certain federal taxes.

2. Gather Required Information: You’ll need information about your business, including:

   • Legal structure (e.g., sole proprietorship, partnership, corporation)

   • Name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) of the responsible party

   • Business address

   • Type of business and reason for applying

3. Choose a Method to Apply:

   • Online: The fastest method is to apply online at the IRS website. You can complete the process in one session. Here’s the link to the online application: IRS EIN Online Application.

   • By Mail: Fill out Form SS-4, Application for Employer Identification Number, and mail it to the IRS. The mailing address depends on whether you are including a payment or not. You can find the address on the Form SS-4 instructions.

   • By Fax: You can also fax Form SS-4 to the IRS. The fax number depends on where you are located and whether you are including a payment.

   • By Phone: International applicants can apply by calling the IRS at +1-267-941-1099. This option is not available for domestic applicants.

4. Complete the Application: Follow the instructions carefully. If you’re applying online, the system will guide you through the process.

5. Receive Your EIN:

   • Online: If you apply online, you’ll receive your EIN immediately after completing the application.

   • By Mail or Fax: It usually takes about 4-6 weeks to receive your EIN by mail or fax.

6. Record Your EIN: Keep your EIN in a safe place, as you’ll need it for various business-related documents and tax filings.

If you have any specific questions or run into issues, the IRS website has detailed instructions and contact information for further assistance.