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Getting an EIN Number for Your Business

The Essential Guide to Getting an EIN Number for Your Business

March 01, 20249 min read

As a business owner, there are several important steps you need to take to establish and protect your business. One of the most crucial steps is obtaining an Employer Identification Number (EIN). This unique nine-digit number, also known as a Federal Tax Identification Number, is assigned by the Internal Revenue Service (IRS) and is used to identify your business for tax purposes. Here's everything you need to know about getting an EIN for your business.

Demystifying the EIN: What Is an EIN Number and Why Is It Essential for Small Businesses and Entrepreneurs

EIN stands for Employer Identification Number. It's a unique nine-digit number assigned by the IRS to identify a business entity. Small businesses and entrepreneurs need an EIN for several reasons:

  1. Business Identity: It helps establish your business as a separate legal entity, distinct from your personal identity.

  2. Tax Purposes: An EIN is required for filing taxes. It's used to report employment taxes and other business tax returns.

  3. Opening a Business Bank Account: Most banks require an EIN to open a business bank account. It helps to separate personal and business finances.

  4. Hiring Employees: If you plan to hire employees, you'll need an EIN for payroll and employment tax purposes.

  5. Business Credit: Establishing business credit often requires an EIN. This can be important for securing loans or financing.

  6. Legal Requirements: Certain business structures, such as corporations and partnerships, are required to have an EIN.

In essence, an EIN is crucial for identifying your business entity for tax and financial purposes, and it's often a necessary step in the process of starting and running a small business.

After you receive your Employer Identification Number (EIN), there are several important steps to take.

First, you'll want to keep your EIN in a safe place, as it will be needed for various business activities.

Next, you should use your EIN to open a business bank account. This will help you keep your personal and business finances separate, which is important for tax and accounting purposes. You should also update your business records with your new EIN, including any contracts, invoices, or other documents that list your tax identification number.

Additionally, if you have employees, you'll need to use your EIN to set up payroll and file employment taxes. Overall, getting your EIN is just the first step in establishing your business, and there are several important tasks that follow to ensure your business runs smoothly.

Using an EIN for Multiple Businesses: Guidelines and Best Practices

You can use an Employer Identification Number (EIN) for multiple businesses or purposes, as long as you follow certain guidelines. Each separate business entity that you own or operate should have its own EIN. However, there are situations where you can use the same EIN for multiple businesses:

  1. Multiple Entities Under the Same Ownership: If you have multiple businesses that are owned by the same entity (such as a parent company owning several subsidiaries), you can use the same EIN for all of them.

  2. Sole Proprietorship with Multiple Businesses: If you operate multiple businesses as a sole proprietor, you can use the same EIN for all of them. However, each business should have its own separate accounting records.

  3. Changing Business Structures: If you change the legal structure of your business (such as from a sole proprietorship to an LLC), you may be able to use the same EIN if certain conditions are met.

It's important to consult with a tax professional or legal advisor to ensure that you are using your EIN correctly for multiple businesses or purposes, and to understand any specific requirements or limitations based on your individual circumstances.


Unlock Your Business's Potential with a Free EIN Number: Don't Pay for What Should Be Free!

When it comes to obtaining an Employer Identification Number (EIN) for your business, it's important to know that you should not be paying for it. The process of getting an EIN is free and can be done directly through the IRS website. If you come across any services or individuals charging a fee for an EIN, it's best to avoid them. If you're unsure about how to apply for a free EIN, feel free to book a time with me, and I'll walk you through the process step by step. Remember, obtaining an EIN should not cost you anything—it's a simple and free process provided by the IRS.

How to Get an EIN

Getting an EIN for your business is a simple and free process. Here are the steps to apply for an EIN:

  1. Understand the Purpose: An EIN, also known as a Federal Tax Identification Number, is used by the IRS to identify your business for tax purposes. It's required for most types of businesses, including sole proprietorships, partnerships, and corporations.

  2. Check Eligibility: You must have a valid Taxpayer Identification Number (SSN, ITIN, or EIN) to apply for an EIN. Additionally, your business must be located in the United States or its territories.

  3. Gather Required Information: You'll need the following information to complete the application:

    • Legal name of your business entity

    • Trade name (if different from legal name)

    • Physical address of the business

    • Mailing address (if different)

    • County and state where the principal business is located

    • Name, SSN, and address of the responsible party (usually the owner or principal officer)

  4. Choose the Application Method:

    • Online (this is what I recommend) : The fastest way to get an EIN is to apply online on the IRS website. This service is available Monday through Friday, from 7 a.m. to 10 p.m. Eastern Time. You'll receive your EIN immediately after completing the online application.

    • By Mail or Fax: You can also complete Form SS-4 (Application for Employer Identification Number) and mail or fax it to the IRS. This method takes longer, as you'll receive your EIN by mail in about four weeks.

  5. Complete the Application: If applying online, visit the IRS website and navigate to the EIN Assistant page. Follow the instructions to complete the online application. If applying by mail or fax, download Form SS-4 from the IRS website and fill it out according to the instructions.

  6. Submit the Application: If applying online, submit the application electronically. If applying by mail or fax, send the completed Form SS-4 to the appropriate IRS office. The mailing address and fax number are provided in the instructions for Form SS-4.

  7. Receive Your EIN: Once your application is processed, you'll receive your EIN from the IRS. If you applied online, you'll receive it immediately. If you applied by mail or fax, you'll receive it by mail in about four weeks.

  8. Keep Your EIN Safe: Once you receive your EIN, keep it in a safe place. You'll need it for tax purposes, opening a business bank account, hiring employees, and other business-related activities.

  9. Update Your Records: Make sure to update your business records with your new EIN, including any tax filings or registrations.

  10. Understand Your Responsibilities: As a business owner, it's important to understand your responsibilities related to taxes and reporting requirements. Consider consulting with a tax professional for guidance.

How soon can I use my EIN number?

You can use your Employer Identification Number (EIN) immediately upon receiving it from the IRS.

It's important to note that while you can start using your EIN right away, you may need to complete additional steps depending on your specific business activities and requirements. For example, if you plan to hire employees, you'll need to register with the appropriate state agencies and set up payroll before you can pay your employees using your EIN. Overall, the timeline for using your EIN depends on your business needs and how quickly you can complete the necessary steps to get your business up and running.

Debunking Common EIN Myths

When it comes to the Employer Identification Number (EIN), there are many misconceptions and myths that can confuse business owners and individuals alike. One of the most common myths is whether you can use your EIN to apply for a job. Let's debunk this myth and explore the truth behind using an EIN for job applications.

Myth: You can use your EIN to apply for a job.

Fact: No, you cannot use your EIN to apply for a job.

Your EIN is specifically used for tax purposes and to identify your business entity. It is not a substitute for your Social Security Number (SSN) when applying for employment. When you apply for a job, you will typically be asked to provide your SSN for tax and employment verification purposes.

Why the Myth Exists:

The confusion may stem from the fact that some businesses, particularly larger corporations or employers with multiple locations, may have an EIN. However, this number is used by the employer for tax and payroll purposes, not by the employee for job applications.

Other EIN Myths:

While the myth about using your EIN to apply for a job is common, there are other myths surrounding EINs that should be debunked:

  1. Using an EIN Instead of an SSN for Credit: Your EIN is not a substitute for your SSN when applying for personal credit. While your EIN is used to establish business credit, personal credit applications typically require your SSN.

  2. Renting an Apartment with an EIN: Landlords typically require your SSN for rental applications, not your EIN. Your SSN is used for background checks and to verify your identity.

  3. Using an EIN Instead of an ITIN: An EIN is not a substitute for an Individual Taxpayer Identification Number (ITIN). An ITIN is used by individuals who are not eligible for an SSN but need to file taxes or open a bank account.

It's important to understand the true purpose of your EIN and not fall for common myths and misconceptions. Your EIN is a valuable tool for your business, but it should not be used in place of your SSN for personal transactions or employment purposes. If you have any questions about your EIN or its uses, consult with a tax professional or legal advisor for guidance.

Is it Safe to Share Your EIN? Understanding the Risks and Best Practices

It is generally safe to share your Employer Identification Number (EIN) with trusted parties, such as banks, financial institutions, and government agencies, for legitimate business purposes.

However, it's important to be cautious about who you share your EIN with to avoid potential identity theft or fraud. Avoid sharing your EIN on public platforms or with unfamiliar individuals or organizations.

Always verify the legitimacy of the request and ensure that sharing your EIN is necessary for the transaction or service being provided. If you have any concerns about sharing your EIN, consider seeking advice from a legal or financial professional.


Obtaining an EIN for your business is a crucial step that should not be overlooked. It is essential for tax purposes, business identification, and legal compliance.

The process is free, straightforward, and can be completed online in a matter of minutes. By following these steps and obtaining an EIN, you are taking an important step towards establishing and protecting your business.

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