Employer Identification Number (EIN) Definition: The Employer Identification Number, or EIN, is a federal tax identification number assigned to a business or company to identify it as a unique entity. In general, most, if not all, businesses require to apply for an EIN.
When you apply for this identifying number, there is no fee for this service, and it is offered free of charge through the IRS or Internal Revenue Service. An EIN may vary based on the country, state, or location regarding requirements and the application process. It’s an essential step in establishing a company so that it can be tracked and identified for taxation purposes.
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