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An EIN Number (also called a Tax ID) stands for Employer Identification Number. Most people consider an EIN Number like a Social Security Number (SSN) for a business. The IRS requires most businesses to obtain an EIN in order to identify the business for tax purposes. Some advantages of getting your Tax ID / EIN Number include: the ability to open a business bank account or line of credit, to hire employees or to apply for certain business licenses.
You need an EIN in order to hire full time employees
Enables you to open a business account or line of credit
Sole Props use EINs to keep their SSN numbers private