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If you’re starting a company, you may be unsure how to form an entity and what is required to begin to get your business started. Your attorney and accountant can assist with the details and filings, but we thought a little prior knowledge will help smooth the way.
Once you have selected a state(s) to do business in and have filed the appropriate documents with the state office, you need an Employer Identification Number or EIN.
According the Internal Revenue Service (IRS):
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service and you can get your EIN immediately. You must check with your state to make sure you need a state number or charter.
Some fun facts about the EIN:
- If registering as a business, the Employer Identification Number is public
- If you are an individual registering as a business and providing your Social Security Number(SSN) as your EIN, it will also be viewable by the public, but will be referred to as an EIN, not a SSN.
- When used for identification, it is usually referred to as a Taxpayer Identification Number(TIN),
- When used for reporting employment taxes, it is usually referred to as an EIN.
- EIN’s do not expire.
- It is not considered sensitive information, like a SSN, and is used in many ways by businesses.
If you need assistance with obtaining an EIN, please contact us and we can refer you to one of our colleagues for assistance.