Glossary · People and paperwork
Employer Identification Number
In short
A unique nine-digit number assigned by the IRS to identify a business entity. It's like a Social Security Number for your business.
What it means in a deal
Your new business entity will need an EIN for tax purposes, opening bank accounts, and hiring employees. You'll apply for this with the IRS after forming your entity. This number is crucial for all financial and legal documentation related to the business, including loan applications and tax filings.
Related terms
Common questions about Employer Identification Number
- Can a partial equity injection come from a deferred management bonus from my current employer?
- Does my business need to have been operating for a certain number of years?
- Does the SBA have requirements for the minimum number of employees a business must have?
- Does the SBA 7(a) loan program have a requirement for a minimum number of employees?
- What is the maximum number of years I can take to repay an SBA 7(a) loan?
- Is there a minimum number of years my business must be operating to get an SBA 7(a) loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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