EIN (Employer Identification Number): definition, example, and why it matters

Required for hiring, opening a business bank account, and accepting payment processing. Free to apply for at irs.gov. Sole props can use their SSN but an EIN protects your personal identity.

• Short definition. A federal tax ID issued to US businesses by the IRS.
• Category. EIN (Employer Identification Number) is a tax term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds ein (employer identification number) into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does ein (employer identification number) mean?

Required for hiring, opening a business bank account, and accepting payment processing. Free to apply for at irs.gov. Sole props can use their SSN but an EIN protects your personal identity.

Related terms

• W-9 form — A US tax form independent contractors complete so payers can issue them a 1099.
• 1099-NEC / 1099-MISC — US tax forms reporting payments to independent contractors and other non-employees.
• Tax ID — A generic term for any government-issued number that identifies a taxpayer.