The EIN is essentially the social security number for your business and is the same as a Federal Tax ID number. A EIN is a nine-digit number assigned to sole proprietors, partnerships, corporations, estates, trusts, and other entities for filing and reporting purposes. Every business with employees has to have an EIN as do corporations and businesses that need to collect and remit sales tax. However, even businesses with no employees may choose to have a Federal Tax ID number/EIN. For example, a sole proprietor might need to have an EIN to open a business account at a bank or in order to work with venders. Otherwise, sole proprietors can use their social security number for tax reporting purposes.
Contact the IRS for additional information or to obtain a Federal Tax ID number.