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What is an EIN number and why does my business need one?

Sales tax & state compliance

An EIN is a nine-digit federal tax ID the IRS assigns to a business. It identifies your company on tax returns the way an SSN identifies a person.

You need one to open a US business bank account, run payroll, issue 1099s, and file a corporate return. Most banks will not open an account without it. Here is how to get an EIN and what the IRS asks for.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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