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What is an EIN and why do I need it? [Video]

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is used to identify a business entity.

An EIN is a federal nine-digit number, kind of like a person’s Social Security number, which is assigned to a company and identifies it for tax purposes. Businesses apply for EINs through the Internal Revenue Service.

If you run a corporation, a Limited Liability Company with more than one member or a business that hires employees you are most likely required to obtain an EIN. The number is normally one of the first things businesses apply for following incorporation, so it’s important to have it on your to-do list.

CorpCo can handle the process of applying for an EIN on your company’s behalf. The service can be added to your company formation order, or exist as a stand-alone.