An employer identification number (EIN) is the tax identification number for a business that is used to establish a bank account; report wages and income of employees and service providers; file applications for loans, grants, and contributions; and report federal, state, and local taxes.

Sole proprietorships are generally unincorporated and use a SSN.  For-profit entities that are incorporated or that operate as a partnership generally use an EIN.  Non-profit entities that wish to receive tax-exempt status from the IRS can be a corporation or association and will use an EIN.

A business can begin operating without an EIN, but should request an EIN (from the IRS) as soon as possible if the intent is to operate as a corporation, association, or partnership.  Persons interested in operating a business should also contact the business division of the state the business will primarily operate from for procedures and guidance on use of a SSN and/or EIN.