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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.

How will an EIN help my business?

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

• Opening a bank account
• Taking out loans
• 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 get your 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.

1. Complete our short questionnaire

Answer a few simple questions, such as the type of business you own, the state you are located in, and your reason for applying.

2. We process your application

We will review your application to ensure that it is complete and submit it for processing. You can easily check the status of your application at any time.

3. Receive your EIN

We will let you know when your EIN is ready.

> Apply for your EIN

 

Checklist

Step 1: Register Your Business

Your business must be officially formed by registering with your state prior to obtaining your EIN. This will secure the legal name of your business, which you will need when applying for your EIN. If your business is not yet registered with the state, LegalNature’s trained specialists can do it for you. Simply answer this quick questionnaire and we will take it from there.

Step 2: Gather the Required Information

You will need to provide the following information when applying for your EIN:

• The legal name of your business. This is the full official name of the business as approved by your state office.
• Your business’s date of formation. This is the date that your business was approved by your state office unless you have chosen a different date.
• The company's state ID number, if known.
• The number of members of your LLC or the number of shareholders of your corporation.
• Your trade name, also known as a "fictitious name" or "doing business as (DBA)," if you have registered one with your state. This is a name other than the company's legal name that your company identifies as publicly.
• The responsible party’s name, Social Security Number (SSN), and email address. The responsible party is the owner who is applying for the EIN.

Note that much of this information can be found on the registration documents you filed with the state.

Step 3: Complete Our Short Questionnaire

Submit the information you gathered by completing our short questionnaire. This normally only takes 5–10 minutes.

 

> Apply for your EIN