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What Is an EIN?

An EIN — Employer Identification Number — is a federal tax identification number for your business. Banks, insurers, vendors and licensing agencies all use it to identify your company.

The EIN is free

You apply for an EIN directly with the IRS. There is no fee. Services that charge for an EIN are charging you to fill out a form you can complete yourself in one sitting.

Before you apply, have your legal business name, entity type, formation state, and responsible-party information ready.

What an EIN is not

An EIN is not credit. It is not a funding approval, and it does not create a borrowing limit. Any claim about instant business credit tied to an EIN should be treated with suspicion.

It is simply an identifier — a required piece of your business foundation, not a shortcut around one.

Common questions

Do I need an EIN before opening a business bank account?
Most banks ask for an EIN along with your formation documents when opening a business account.
Does an EIN give me business credit?
No. An EIN identifies your business for tax purposes. Credit is built through documented vendor and payment history over time, and nothing is guaranteed.

Educational information only. Regulations and licensing requirements can change. Verify requirements with the appropriate government agencies and qualified professionals before acting. No financing, credit approval, licensing approval, revenue or business outcome is guaranteed.

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