What does an EIN, or Employer Identification Number, mean?
The Employer Identification Number is a unique nine-digit number assigned by the Internal Revenue Service for identification purposes to businesses operating in the United States. The federal government also refers to the EIN as the Federal Tax Identification Number and the Federal Employer Identification Number.
The EIN is used to identify a business by financial institutions, including banks, payment gateways, and eCommerce platforms such as Walmart. Additionally, it is used to build business credit. A valid EIN is essential for any business.
Common Questions About Employer Identification Number
Q) Can I apply for credit with an EIN?
Applying for credit with an EIN will show up on your company's credit report rather than your own, so go ahead and use it! Your business credit report contains:
• Information regarding loans.
• Activity on business credit cards.
• Payments made to various vendors and suppliers.
Q) Who will be the responsible party for my company's EIN?
You or any member of the company will be the responsible party. While placing an order, add the name of the responsible party you want to have listed in the EIN confirmation letter.
Q) Can I apply for an EIN if I don't have a SSN or ITIN?
Sure! You are welcome to apply as a foreign citizen and a US-based entity owner.
Q) Will my SSN be disclosed to any parties besides the IRS during the EIN application process?
Our system is designed with the most recent technologies to prevent data leaks, so don't worry; we are fully responsible for your SSN. There is no way for your SSN to be shared with anyone other than the IRS.
Q) Which confirmation letter will I receive five business days after applying for an EIN?
You will receive the EIN 147C confirmation letter from us. If you use our registered agent service, we will also be able to receive the EIN CP 575 confirmation letter, scan it, and upload it to your dashboard.
Q) What is an EIN CP 575 confirmation letter or a 147C confirmation letter?
An EIN 147C confirmation letter is a letter obtained from the IRS that includes your entity name, entity responsible party, entity address, and EIN (number).
An EIN CP 575 confirmation letter is a more detailed letter that contains the same information as the 147 confirmation letter, as well as tax forms that your entity is required to file. The EIN CP 575 confirmation letter is mailed to your company's mailing address. Financial institutions, such as banks or payment gateways, use the EIN 147C or CP 575 confirmation letters to verify your EIN.
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