The next thing you will need is an Employer Identification Number or an EIN. An EIN is like your personal social security number except it is for your business. This number will be used when you file taxes and certain forms with the government.
Who is required to have an EIN?
If your business structure is an LLC, partnership, or corporation, or you plan to have more than one employee, you must have an EIN. The only business structure that is not required to have an EIN is a sole proprietorship. Many sole proprietors choose to obtain an EIN even though it is not required because it can be useful for banking purposes or loans.
To apply for an EIN, you will need to apply through the IRS. Applications can be submitted by:
- Mail or fax with a Form SS-4
- Telephone by calling 267-941-1099 between 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday
- Application can be submitted electronically on the IRS website
The EIN application process is free. Read more on EINs here.
Once the IRS accepts your EIN application and grants you an EIN, the IRS will notify you through the mail with Form CP-575. Form CP-575 will serve as proof that you have a valid EIN, so be sure to keep the Form CP-575.