Glossary
EIN
The IRS-issued tax id for a business.
An Employer Identification Number is the federal tax id for a business, obtained free from the IRS. It is needed for business bank accounts, payroll, and a business credit file. "EIN-only" funding claims (no personal credit check or guarantee) deserve skepticism: most small-business financing still checks and guarantees the owner, because the business has little standalone history.
How it appears in a contract
Requested on every application; verified against the IRS letter.
Worked example
A vendor net-30 account opened with an EIN and paid early each month is a legitimate first business tradeline.
Illustrative figures on stated assumptions; not quotes.
What to ask
- Is this product truly underwritten on the business alone?
- Will the owner be checked or guarantee it?
- Does the provider report to business credit bureaus?
Related terms
Business purpose · Time in business · Personal guarantee · all terms
Educational definitions, not legal advice. Contract terms and their legal treatment vary by provider and state; read your agreement and ask a professional.
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