3 min read
An Employer Identification Number (or EIN) is how the IRS recognizes your business. It's similar to a Social Security Number, but for your company.
If you’re forming a single-member LLC taxed as a sole proprietor, you don’t “technically” need an EIN unless you have employees. But, most banks require you to have one to open your company’s bank account, so most businesses get one.
And if you’re a multi-member LLC, you need to have one. Here's an example of why it's good to have one.
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If you’ve concluded you need an EIN, here are the steps for obtaining one. The process is done online, but it’s important to note that it must be done Monday through Friday between 7 a.m. and 10 p.m Eastern Standard Time.
Click here for the link. Click “Apply online now.” Then click “okay” and “begin application” to begin the process.
Next, you will need to choose the type of entity you are forming. Select your entity and click “Continue.” Then you’ll be asked why are you requesting the EIN?
For most, it’s “Started a new business” but select the purpose most appropriate for you.
The next page requires your information, including name and social security number. Complete the fields and make the appropriate selection for President, CEO, or other corporate officer permitted to file for an EIN and select “Continue.”
On the next page, enter the address you’ll be using for your business and your business phone number. (Enter your cell phone number if you don’t have a business number.) Finally, you’ll be asked if you have a different mailing address. Most people answer no to this. If you want a different mailing address, choose “Yes” and then click “Continue."
Next, you might see a page pop up stating that the database address is slightly different. Ensure that the address is correct, and click “Accept Database Version.”
Next you will be asked basic questions about your business. First, type in the name of your business. Remember that punctuation is very important, and the site does not allow commas so, even if your business name actually has a comma, don’t include it there.
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If your business has a d/b/a, include it here. Then enter the county and state where the corporation is located. Select the state where you filed your organizing documents and the month and year you did so, and then click continue.
This next page stumps some people. Take a look at these questions. Some of these might apply to you, but more often than not most or all won’t apply. After looking it over, choose “Yes” or “No” where appropriate, and click “Continue.”
The next page asks about what your business does. Pick the right category or if its not applicable, scroll to the bottom, click “Other,” and then click “Continue.” If you click other, you’ll be asked to write a short description of your company (3-7 words).
Now the site will ask how you wish to receive your EIN confirmation. Choose the best option (almost everyone receives it electronically).
This last page shows a summary of all the information you’ve submitted. Carefully review and save this webpage for your records, as it shows all the details of your application. If you prefer a physical copy, you can print it. Finally, click “Submit.”
Congrats on getting your new EIN. You should now see that a PDF has been created. Go ahead and save this page, print it if you’d like, and make sure you record your EIN in a safe place. Now follow how to create an LLC, step-by-step, to complete your company setup.
The biggest question now is, "Does your business need an attorney?” For most businesses and in most cases, you don't need a lawyer to start your business. Instead, many business owners rely on Legal GPS Pro to help with legal issues.
Legal GPS Pro is your All-In-One Legal Toolkit for Businesses. Developed by top startup attorneys, Pro gives you access to 100+ expertly crafted templates including operating agreements, NDAs, and service agreements, and an interactive platform. All designed to protect your company and set it up for lasting success.
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Chris Daming, J.D., LL.M. : Sep. 26, 2024
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