What Is an EIN? Who Needs One and How To Get It

What Is an Employee Identification Number (EIN)?

By Motley Fool Staff – Updated Dec 13, 2025 at 5:43 PM EST

Key Points

EIN serves as a unique identifier for businesses, similar to an individual's SSN.
Businesses, especially with employees or those needing to file certain taxes, must obtain an EIN.
Applying for an EIN online through the IRS is immediate, other methods may take four weeks.

An employer identification number (EIN) is usually a nine-digit number assigned to new and restructuring businesses by the IRS. It's somewhat akin to a Social Security number (which also has nine digits). Read on to find out more about EINs, who needs one, how to get one, and the benefits of having an EIN.

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EINs: The bottom line

Not everyone will need an EIN. There were 28.4 million non-farm sole proprietorships in the United States in 2020, many with no employees. Still, there's much to be said for getting an employer identification number if you're running a business. It shows you're serious about your company, you're complying with tax laws, and that you might even have your eye on becoming a bigger business if that's your goal.

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