An Employer Identification Number is the nine-digit identifier under which the US tax authority holds a company and under which banks and partners identify it.
An Employer Identification Number is the nine-digit identifier under which the US tax authority holds a company and under which banks and partners identify it.
Also called: Federal tax ID.
How it works#
An Employer Identification Number is issued once and stays with the company. A business without a US seat can obtain one where a tax or commercial reason exists. It is a prerequisite for a business account, for payment processors and for reporting, yet it creates no creditworthiness of its own: a business file appears only once liabilities are reported to a commercial bureau.
Not to be confused with#
An Employer Identification Number is not a personal identifier: it identifies a company and is useless for a personal credit card application.
In German#
The German term is Arbeitgebernummer. German version of this term
Related terms#
- Individual Taxpayer Identification Number: An Individual Taxpayer Identification Number is the US number for people not eligible for a Social Security number, issued strictly for tax purposes.
- Personal guarantee: A personal guarantee is the applicant’s promise to cover the liabilities of a business account if the company itself fails to pay them.
Articles that use this term#
TopicEvery article and term onUS companies.
Support on this topicFor anyone who would rather not take this step alone, the matching service is here:Apply for an ITIN.