Question

what is Employer ID Number (EIN) ?  

Explain EIN's importance and uses.

Answer 1

Employer Identification Number is a unique number assigned to the employer by the Internal Revenue Service in the United States for reporting of corporate taxes which need to be paid by the business to the government.

Below are EIN's importance and uses -

1. Required for opening a business bank account

2. Decision to change organization type

3. To establish pensions, retrirement and trust plans

4. Legality for Acquisition of other businesses

5. Paying taxes and filing returns.