What is an EIN number?
An employer identification number (EIN) is a number assigned to businesses by the. It is also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number.
How an EIN Works
The EIN is nine digits long, and the format is XX-XXXXXXX. Similar to a Social Security number, the EIN reflects the state in which the company exists, though this rule ceased after 2001.
Companies need to obtain EINs if they have employees, operate as partnerships or corporations, have tax-deferred pension plans, or withhold income taxes for nonresident aliens. Companies that deal with REITs, farms, nonprofit activities or certain trusts may also need EINs.
Companies can apply for EINs online at Click here for more information.
Why is an EIN Important?
An EIN helps thedistinguish among different employers. Companies sometimes have to obtain new EINs if their ownership structures change significantly.
EINs are for tax purposes only; they do not replace Social Security or other benefits. EINs are not the same as Identification Numbers (TINs). It’s also important to that EINs are for federal tax purposes; states may have additional identification requirements.numbers, authorize a person to work in the United States, or create eligibility for
There are many ways to find or look up a business entity's EIN. These include:
- Searching for records in EDGAR, the U.S. Securities and Exchange Commission (SEC) database. It contains financial reports such as a 10-K Form, a company's annual report to shareholders. The form includes its EIN, as well as other firmographic information.
- The EIN can also be found on a company-issued W-2 Form or 1099 Form. It's listed in box "b" of the form W-2 and on form 1099 beneath the company's name and address.
- An EIN for a nonprofit organization can be found in the IRS Exempt Organizations database.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
When I looked for my first mortgage, I was skeptical about rates that were too low. There had to be a catch when one mortgage had a rate...Read More →
In the last piece in this series, we discussed what you need to know to get started analyzing companies. Yet for many investors, it's the more advanced techniques that prove tricky to master....Read More →
Most investors understand the need to keep a portfolio from becoming too risky. As we saw in 2008, those investors that were fully invested in the...Read More →
Every year in January, I do a big portfolio review. I rebalance my portfolio and make sure that I still like my current mutual funds and ETFs. And I get to know the...Read More →