An EIN (also called a Federal Employment Identification Number) is a nine-digit tax ID that the IRS assigns to your business for tax purposes. Your business’s EIN identifies your company when filing business tax returns—the same way your Social Security number (SSN) identifies you.

Starting a business but would rather not go through the steps below? You can opt to add CMS’s EIN – Tax ID Number Service when you hire us to form your LLC or corporation.

Do I need an EIN?

Yes. Businesses that have a foreign owner, hire employees or are taxed as a corporation will need to get an EIN. Here’s a list of other situations where you’d be required to get an EIN:

• Your business is (or is taxed as) a corporation or partnership
• You have a self-employment retirement plan
• You pay excise, employment, or alcohol, tobacco, and firearm taxes
• You withhold income taxes (besides wages) that are paid to a non-resident alien
• You are involved in any of the following:
  • Trusts (other than revocable trusts owned by the grantor), IRAs, and Exempt Organization Business Income Tax Returns
  • Estates
  • Real estate mortgage investment conduits
  • Non-profits
  • Farmer cooperatives
  • Plan administrators

EINs are also required for opening a business bank account and some state-level filings. For example, the Alabama Business Privilege Tax and Arkansas Franchise Tax need an EIN to file.