<P> The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine - digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification . When the number is used for identification rather than employment tax reporting, it is usually referred to as a Taxpayer Identification Number (TIN), and when used for the purposes of reporting employment taxes, it is usually referred to as an EIN . These numbers are used for tax administration and must be not used for any other purpose . For example, the EIN should not be used in tax lien auction or sales, lotteries, etc . </P> <P> Similar in purpose to the Social Security number assigned to individuals, EINs are used by employers, sole proprietors, corporations, partnerships, non-profit organizations, trusts and estates, government agencies, certain individuals and other business entities . The IRS uses this number to identify taxpayers that are required to file various business tax returns . Individuals who are employers may choose to either obtain an EIN or use their Social Security number for the purpose of reporting taxes withheld on behalf of their employees . Contrary to some misconceptions, credit bureaus and credit issuers can tell the difference between SSNs and EINs . SSNs can be validated as to origin and state / year of issuance . The credit bureaus and issuers are highly trained in fraud detection, and increasingly sophisticated algorithms and protections are used . This is why the EIN is not considered sensitive information, and is freely distributed by many businesses by way of publications and the internet . </P> <P> The EIN system was created by the IRS in 1974 by Treasury Decision (TD) 7306, 39 Fed . Reg. 9946 . The authority for EIN's is derived from 26 USC 6011 (b), requiring taxpayer identification for the purpose of payment of employment taxes . The provision was first enacted as part of the revision of the Tax Code in 1954 . This authority was broadened in 1961 by 26 USC 6109 . An EIN is usually written in the form 00 - 0000000 whereas a Social Security Number is usually written in the form 000 - 00 - 0000 in order to differentiate between the two . There are EIN Decoders on the web that can identify in what state the company registered the EIN . </P> <P> A business needs an EIN in order to pay employees and to file business tax returns . To be considered a Partnership, LLC, Corporation, S Corporation, Non-profit, etc. a business must obtain an EIN . Those business that do not are considered proprietorships and the Owner / Operator SSN is used on any tax documents . Also, financial institutions such as banks, credit unions, and brokerage houses will not open an account for a corporation without an EIN . Since all corporations - including ones with no income - must file at least a federal income tax return, a corporation operating or incorporated in the United States generally must obtain an EIN anyway either before or after being issued its charter . </P>

What does a federal ein number look like