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.
All businesses that hire employees are required by law to have an EIN.
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.
A business needs an EIN in order to file taxes with the IRS separately from its owners.
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.
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.
EINs help in many ways other than simply communicating with the IRS, including the following:
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.
Answer a few simple questions, such as the type of business you own, the state you are located in, and your reason for applying.
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.
We will let you know when your EIN is ready.
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.
You will need to provide the following information when applying for your EIN:
Note that much of this information can be found on the registration documents you filed with the state.
Submit the information you gathered by completing our short questionnaire. This normally only takes 5–10 minutes.