2006-08-07 12:28:12 · 2 answers · asked by Torris L 1 in Business & Finance ➔ Credit
The EIN is Employer Identification Number. It is used by businesses or by individual who have employees.
It serves the same purpose as a SSN does for an individual allowing the IRS to keep track of a business, it's earnings and tax payments, but it is not technically the same thing.
2006-08-07 12:37:16 · answer #1 · answered by lcmcpa 7 · 0⤊ 0⤋
The EIN is used to identify a business entity such as a corporation, LLC, or partnership. Sole proprietorships that need to pay federal excise of employment taxes are required to get an EIN.
On the other hand, sole proprietors with no employees are not required to get an EIN, and can instead use their Social Security numbers.
The Internal Revenue Service (IRS) web site at http://www.irs.ustreas.gov/businesses/small/article/0,,id=98350,00.html contains all the information you need about EIN and how to apply for an EIN electronically.
2006-08-07 19:37:46 · answer #2 · answered by imisidro 7 · 0⤊ 0⤋