How To: Get an EIN

by: Jen Udan | ChooseWhat.com

Getting an Employer Identification Number (EIN) is necessary in order to open a bank account, file taxes, get a credit card, and set up other important accounts for your business.

What is an EIN?

An Employer Identification Number (EIN) is like a social security number for a business.  Anything that you do as an individual that requires your social security number (e.g. report income to the government, open a bank account, get a credit card, etc.) that you want to do as a business will require an EIN.

Who needs an EIN?

• Businesses with more than one owner
• Businesses that want to hire employees
• Businesses that want to open a bank account
• Businesses that want to get a credit card
• Businesses that want to file an income tax return
• Report earnings
• Deduct expenses
• Most service accounts you set up will be tied to your EIN (e.g. phone service).

Who does not need an EIN?

• If you’re a sole proprietor or a single-member LLC, you can use your social security number instead of an EIN.

1. Assemble necessary information: 
   
   

   • Type of Business Entity/Legal Structure (e.g. Sole Proprietorship, Partnership, Corporation, LLC)
   • Name of Business
   • Business Address
   • Social Security Number of the responsible individual for your business or the EIN of an existing business that acts as the responsible party for your business.

2. Fill out the IRS application for an EIN.  

   It should take 15 minutes, and you’ll get your EIN instantly when you’re done.