What is EIN (Employer Identification Number)?
Definition
An Employer Identification Number (EIN) is a nine-digit number assigned by the IRS to identify a business entity for tax purposes. It functions like a Social Security number for a business. Most LLCs and all corporations need an EIN to open a business bank account, hire employees, and file tax returns. Single-member LLCs without employees can technically use the owner's SSN, but most apply for an EIN anyway to keep personal and business finances separate.
Real-World Example
After forming their LLC, a new restaurant owner applies for an EIN on the IRS website so they can open a business checking account and set up payroll for their first two employees.
Why This Matters for Lead Generation
EIN application is one of the first things a new business owner does after formation — often within the same week. CPAs and accountants who reach out to newly formed LLCs can offer EIN application as a low-friction entry service that opens the door to bookkeeping, tax planning, and advisory retainers. The EIN need confirms the business is actively setting up operations.
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