you need to know By Rami Alame
is an Employer Identification Number that serves as your business’ social
security number. It is a unique 9-digit number that your business will use for
all federal and state tax filings.
What is it?
EIN is an Employer
Identification Number that serves as your business’ social security number. It
is a unique 9-digit number that your business will use for all federal and
state tax filings. This number is permanent throughout the life of the business
unless ownership or legal structure is changed.
EIN may also be required to:
- Open a business checking account
- Acquire a line of credit or other
- Create accounts with various
Depending on the form
you are completing, an EIN may be referred to as the Tax Identification Number
(TIN) or the Federal Employee Identification Number (FEIN) but they are the
you need an EIN?
businesses that require an EIN are:
- All Corporations
- Limited Liability Companies with
more than one member
- All businesses with employees,
including sole proprietorships and LLCs with one member
- Any business when the owner has a
Keogh (retirement) plan.
- Any business that files
Employment, Excise, or Alcohol, Tobacco and Firearms tax returns.
If any of these
situations fit your business, you must apply for an EIN.
for an EIN
- Legal Name of the business
- Trade Name of the business, if
- Mailing Address and Street Address
- County and State where business is
- Name of the Responsible Party and
their SSN, ITIN or EIN
- Whether the company is an LLC and
number of members
- Type of Entity
- Reason for Applying
- Number of Employees
- Type of Business
The Responsible Party
is someone who is active in the business such as an owner or partner. There is
a Third Party Designee section of the application but it is rarely used unless
you own more than one business or have someone else operating the company.
The IRS prefers
online EIN applications over all other forms and you will receive your number