Any business that has employees must generally have a taxpayer identification number, which is often referred to as an “EIN” (employer identification number). An EIN is a number assigned to a business for tax reporting and withholding deposit purposes. It is different from your individual social security number. Both a federal and a state EIN are required.
An EIN is required so that withholdings (federal and state income tax, social security and Medicare taxes, unemployment insurance, and other taxes) can be remitted to the Internal Revenue Service and state tax authorities. The Internal Revenue Service and many state tax authorities publish pamphlets and booklets which can help you determine whether you need a separate EIN for your business.