EIN do I need one?
An EIN, or Employer Identification Number, is a nine-digit number assigned by the Internal Revenue Service (IRS) to identify businesses for tax purposes. It's similar to a Social Security number, but it's used for businesses instead of individuals.
There are many reasons why businesses need an EIN number. Here are some of the most important ones:
To pay taxes. If you have employees, you'll need an EIN number to pay federal payroll taxes. You'll also need an EIN number to file certain other federal tax returns, such as excise taxes and alcohol, tobacco, and firearms taxes.
To open a business bank account. Most banks require businesses to have an EIN number in order to open a business bank account.
To apply for business licenses and permits. Many states and local governments require businesses to have an EIN number in order to apply for business licenses and permits.
To do business with other businesses. Some businesses, such as vendors and suppliers, may require you to have an EIN number before they will do business with you.
How to Get an EIN Number
You can apply for an EIN number online, by fax, or by mail. The application process is free.
To apply for an EIN number online, you can visit the IRS website and follow the instructions. You'll need to provide your business name, address, and contact information. You'll also need to provide the type of business you're operating and the number of employees you have.
To apply for an EIN number by fax, you can download the EIN application form from the IRS website and fax it to the IRS. The fax number is 1-855-641-6933.
To apply for an EIN number by mail, you can download the EIN application form from the IRS website and mail it to the IRS. The mailing address is:
Internal Revenue Service Attn: EIN Operations Cincinnati, OH 45999
Conclusion
An EIN number is an essential part of doing business in the United States. If you don't have an EIN number, you may be unable to pay taxes, open a business bank account, or apply for business licenses and permits. It's a good idea to apply for an EIN number as soon as you start your business.
Here are some additional resources that you may find helpful:
IRS website on EIN numbers: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
SBA article on EIN numbers: https://www.sba.gov/business-guide/launch-your-business/get-federal-state-tax-id-numbers
IRS publication on EIN numbers: https://www.irs.gov/pub/irs-pdf/p1635.pdf
