Do you know what an EIN is? If you’re in the process of starting a business you should learn about it even if you might not need one.
An EIN is an Employer Identification Number issued by the IRS for the purpose of tax administration. To figure out if you need one go this page here on the IRS website.
Here are some uses of the EIN:
- File taxes
- Make wholesale purposes from suppliers
- Use it on W-9s instead of your Social Security Number
- Open a bank account for your business
- Apply for business credit card
A friend of mine once told me she paid someone $600 to help her apply for an EIN. All I could say to her was, what????
Applying for an EIN is a simple and fast process.
- All you need to do is go the IRS page for apply for one which is here.
- Read through the intro
- Go to the bottom of the intro and click “Apply Online Now”
- Follow the instructions
- Submit your application
- When all is done, you’ll have a document with your new EIN on it – Save it to your computer
And that’s it. If you’re really not comfortable with doing it yourself, then I’d use a company like LegalZoom to do it for you. (And nope that’s not an affiliate link). If you prefer to know the person who’s assisting you, contact me here and we can discuss my services on handling the filing for you.