Legal · Article
What an Employer Identification Number is, who needs one, and how it differs from your Social Security Number.
An EIN is a federal tax ID for your business, similar in purpose to a Social Security Number for an individual. Most LLCs and corporations need one to open a business bank account, hire employees, or file business taxes separately from personal ones. Sole proprietors without employees can often use their SSN instead, but a free EIN from the IRS keeps your personal and business identities cleanly separated from day one.
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