business structure

EIN

In the simplest of definitions the EIN is your businesses social security number. It is a nine-digit Employer Identification Number for business, banking, and hiring employees. Businesses need EIN’s for filing employment tax returns; excise tax returns; or alcohol, tobacco, and firearms returns.

Ok - let’s keep that in basic terms for a Hoi Polloi business, you use your EIN to open your business bank account, and apply for business licenses. Even if you will not be having any employees as a sole proprietor or partnership you will still want an EIN for your business banking and licensing purposes.

Be aware that the links on the internet that “charge” you for an EIN are scams. Applying for an EIN is FREE from the IRS and can be applied for online via the IRS EIN Assistant (link below) You can also apply by fax or mail. This is a step in the process and should be done early and in conjunction with establishing your structure with the Secretary of State.

Securing an EIN is a necessary step in the start up process, and in establishing your business and will ultimately help in keeping your regulatory, legal and financial matters in order.