--- title: "Employer identification number (EIN): Definition and Sources | Tax Glossary" description: "An employer identification number is a federal tax ID number the IRS assigns to businesses, including those that hire employees or file certain business returns." url: https://wallacecpa.multisites.ai/glossary/employer-identification-number-ein publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- Business entities # Employer identification number (EIN) An employer identification number is a federal tax ID number the IRS assigns to businesses, including those that hire employees or file certain business returns. An EIN is a federal tax ID for a business. The IRS says you can get one for free directly from the IRS. Anyone who has employees, or will pay employment or excise taxes, needs an EIN. Many banks also ask for one. The EIN identifies the business on payroll filings such as [Form 941](https://wallacecpa.multisites.ai/glossary/form-941) and on contractor forms. A new [limited liability company](https://wallacecpa.multisites.ai/glossary/limited-liability-company-llc) usually applies for its EIN right after it is formed. Use only the IRS website to apply, and avoid sites that charge a fee. The [business formation page](https://wallacecpa.multisites.ai/services/business-formation) shows where the EIN fits. [Wallace CPA can helpNew business formation](https://wallacecpa.multisites.ai/services/business-formation) ## Related terms - [Limited liability company (LLC)](https://wallacecpa.multisites.ai/glossary/limited-liability-company-llc) - [Form 941](https://wallacecpa.multisites.ai/glossary/form-941) - [Payroll tax](https://wallacecpa.multisites.ai/glossary/payroll-tax) - [Form W-9](https://wallacecpa.multisites.ai/glossary/form-w-9) ## Sources 1. [IRS: Employer identification number](https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092