The EIN number of your business is its official identification number. The federal EIN number is used as a taxpayer ID number on tax returns. It is the number that the IRS uses to identify your business. This way, if two businesses have very similar names, the IRS can tell them apart. In many ways, an EIN is like a social security number. The major difference is that an EIN identifies a business entity, while a social security number identifies a person.
An EIN is as Permanent as a Social Security Number
The employer identification number (EIN) is meant to serve as a permanent identifier of a business. Think of it as a social security number for the business. Consider the different ID numbers you have had in your life. Every school or university you attended gave you a different student ID number. If you have ever renewed your passport, each passport has a different number. The same goes for driver’s licenses, even if they were in the same state. But you have had the same social security number since birth, and you will have it for the rest of your life. If you are a naturalized U.S. citizen, your social security number did not change when you got citizenship. Even if you have changed your legal name, your social security number has stayed the same.
Apply Just Once for an EIN
Apply just once for an EIN, and your business will have a permanent ID number. In fact, the EIN does not automatically go away even if the business closes. You will not have to worry about applying for a new EIN, no matter how long your business operates.
Apply today for your EIN so your business will always have an official taxpayer ID number.