Which businesses need Employer Identification Numbers?
All businesses, from single-employee small businesses to Limited Liability Companies (LLCs) to mega-corporations, need EINs; if you’re starting a new business, you’ll need to obtain one. Without an EIN, a business wouldn’t be able to:
- Open a business bank account
- Apply for business licenses and permits
- File business tax returns
- Hire employees
- Apply for business loans or credit
How can I obtain an Employee Identification Number?
Obtaining an EIN is a simple process that can be done online, by mail, or, if you’re so inclined, by fax. The quickest and easiest route is applying online; this process can be completed in as little as 15 minutes, and you’ll receive your EIN immediately upon completion. If you prefer to apply by mail or fax, you should receive your EIN within four weeks.
Before you begin your application, you’ll need a valid Social Security Number (SSN) or Individual Tax Identification Number (ITIN). If you’re a foreign national and don’t have an SSN or ITIN, you’ll need to apply for an ITIN before applying for an EIN.
What do I do with my Employee Identification Number?
Once you have your EIN, it’s essential to keep it secure and use it only for business-related matters. You’ll need to provide your EIN to your employees, your bank, and other businesses you work with. You’ll also need to use your EIN when filing your business tax returns.
