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Frequently Asked Questions

How is an EIN similar to a Social Security number?

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number or Federal Employer Identification Number, is a unique identifier issued by the Internal Revenue Service (IRS) to businesses, including non-profit organizations. It is used for various legal activities such as hiring employees, opening bank accounts, filing tax forms, and applying for business licenses. The EIN is similar to a Social Security Number (SSN) in its function as a unique identifier. It follows a specific format, "12-3456789", much like the SSN. The EIN is particularly useful when forming a non-profit organization as it eliminates the need to use your personal Social Security number in the process. Some states even require that you file for an EIN before applying for tax-exempt status from the IRS. The person applying for the EIN on behalf of the organization must be an authorized and responsible officer or member of the organization, or an incorporator or agent. This person will need to use his or her personal Social Security number on the application, but it won't be needed once the EIN is established.
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