An EIN (Employment Identification Number) is a tax identification number provided by the IRS for tax purposes. You will need open a bank account, hire employees, or accept payments from customer/clients, and make payments to vendors.
An EIN is necessary because the IRS needs an identifier to help keep track of corporate income, as well as payroll deposits made by the business in connection with its employees. Your bank will require an EIN letter before it will allow you to open a bank account in the name of the business. You will also need an EIN to open merchant processing accounts to accept payments online.
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