An Employer Identification Number (EIN) is essential for businesses operating in the U.S. The IRS assigns it for tax and identification purposes. You must obtain an EIN if your business:

• Employs workers.
• Operates as a C-Corp, LLC, S-Corp, or partnership.
• Manages estates, trusts, non-profits, real estate investments, or similar entities.
• Files excise or employment taxes.
• Handles tax returns for alcohol, tobacco, or firearms.
• Has a Keogh plan (a tax-deferred pension plan).

Additionally, an EIN is often needed to open business bank accounts or apply for loans.

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