In the blog post previous to this, we talked about three common business entities that you can establish as.
Once you have made the decision as to what entity you want to do business as, you can go on to the next best step.
In this blog post, we’re talking about what an EIN number is & why you need to have one.
Think of an EIN number as a social security number for your business.
The acronym EIN stands for Employer Identification Number.
Having an EIN number allows the IRS to keep track of your business’ tax reporting.
You get an EIN number after you have chosen & set up your business as a particular entity, like sole proprietorship, LLC or corporation.
Your EIN number is free service offered by the IRS.
Your number will be nine digits long and you can get it immediately after applying.
Having an EIN number establishes your business’ credibility, is necessary for opening a business bank account, applying for licenses, filing/paying taxes and even for hiring employees!
You can apply for your EIN number online here!