What is an EIN number?

Question

I wanted to know what an EIN number was, and what's the purpose of one? Do I need a EIN number to file for a business license?

Answer 1

EIN stands for "Employer Identification Number", a federal ID# issued for businesses, sort of like the equivalent of the social security number (SSN) for individuals.

It is a permanent number used to identify your business in areas such as business licenses, bank accounts, tax records, etc.  You can apply for it by filing a Form SS-4 (www.irs.gov) or online @ https://sa1.www4.irs.gov/modiein/individ...