Employer Identification Number

After starting your business, obtain your EIN (also known as a Federal Tax ID). The EIN is required for LLCs and corporations to pay taxes. The IRS also uses this to identify your business and communicate with you.

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Employer Identification Number document preview
Employer Identification Number document preview

What is an Employer Identification Number?

An EIN, also known as a Federal Tax ID Number, is a unique nine-digit number used to identify your business to the Internal Revenue Service (IRS) and other entities that you transact business with. Think of it as a Social Security Number (SSN) but for your business.

When is an EIN required?

An EIN is required by the IRS for all businesses that pay taxes. This usually includes corporations, LLCs, nonprofits, partnerships, and any business that has employees or files taxes for alcohol, tobacco, or firearms. EINs are also required in other specific circumstances, such as when businesses withhold taxes for non-wage income paid to non-resident aliens.

The bottom line is that it is rarely a good idea to skip getting an EIN. While the IRS allows some business owners to use their personal SSNs instead of an EIN, these business owners run the risk of identity theft and lose out on the many benefits that EINs provide.

Receive your EIN in 3 easy steps

  1. Complete Our Short Questionnaire

    Our intuitive online form will collect all the information we need to file for your EIN from the IRS.

  2. We Prepare Your Application

    Our qualified and experienced team submits your EIN application to the IRS using the information you provide.

  3. Receive Your EIN

    We receive your EIN information and transmit the number to you in a secure and downloadable form for your records.

Why do I need an Employer Identification Number?

An EIN is required when setting up your business and applying for several necessary business needs:

  • Opening a Bank Account: Your business will need its own bank account in order to keep its finances secure and separate from its owners. An EIN is required to open a business bank account with most banks.
  • Building Your Credit Profile: Your EIN will allow your business to build its own separate credit profile. This will help your business obtain loans, rent offices, and lease equipment, especially when the owners have poor credit.
  • Hiring Employees: All businesses that hire employees are required by law to have an EIN.
  • Filing Taxes: A business needs an EIN in order to file taxes with the IRS separately from its owners.
  • Business Licenses: Many accreditation organizations require your business to have an EIN to know that your business organization is legally formed and legitimate prior to issuing business licenses and permits.
Apply For Your EIN Today
Why choose LegalNature?

Why choose LegalNature?

LegalNature offers the qualified experience and guidance to navigate the nuances of business formation across all 50 states and the District of Columbia. LegalNature offers a 30-day money-back guarantee. If you're not happy, then we’re not happy. Give us a call and let us help.

Employer Identification Number (EIN) Help Guide

What is an Employer Identification Number (EIN)?

An EIN, also known as a Federal Tax Identification Number, is a unique nine-digit number used to identify your business to the IRS and other entities that you transact business with. Think of it as a Social Security Number (SSN) but for your business.

When is an EIN required?

An EIN is required by the IRS for all businesses that pay taxes. This usually includes corporations, LLCs, nonprofits, partnerships, and any business that has employees or files taxes for alcohol, tobacco, or firearms. EINs are also required in other specific circumstances, such as when businesses withhold taxes for non-wage income paid to non-resident aliens.

The bottom line is that it is rarely a good idea to skip getting an EIN. While the IRS allows some business owners to use their personal SSNs instead of an EIN, these business owners run the risk of identity theft and lose out on the many benefits that EINs provide. Tax-exempt organizations are required to have an EIN so that their tax-exempt status is on record with the Internal Revenue Service (IRS).

How will an EIN help my business?

EINs help in many ways other than simply communicating with the IRS, including the following:

  • File business taxes and avoid tax penalties
  • Opening a bank account
  • Taking out loans
  • Prevent identity theft
  • Building credit for your business
  • Helping protect the business owners from identity theft
  • Renting property from landlords
  • Receiving utilities
  • Obtaining cell phone services
  • Taking out business insurance

When should I order my EIN?

You should apply for an EIN as soon as possible after your business has been formed. This helps you avoid problems when filing taxes. It also prevents costly delays that can occur when your business is required to submit its EIN to banks and other entities.