![]() You will need to register your business and get approval for the business's name from your state before getting an EIN. ![]() The IRS will ask for your business formation date and legal business name. You must form your business before getting an EIN. The quickest and simplest way for taxpayers to get a free EIN is to apply online on the IRS website using the EIN Assistant. Most new businesses have a difficult time getting approved for a business credit card, but some credit card companies like Divvy approve even new businesses.A business credit card is a great way to start building your business credit and acquire larger and more lines of credit down the road.Banks use EINs to approve you for a business credit card. An EIN acts like a Social Security number for a business.You need an EIN to get a business credit card. Learn more about why you need a business bank account and visit our best banks for small business review. You can also build business credit and qualify for more loans.A business bank account will simplify the process of tracking and managing your professional expenses.Most banks require an EIN in order to open a business banking account. An EIN is required when applying for a business bank account or business credit card. No matter what kind of business you have, it is usually a good idea to get an EIN number. Trusts and EstatesĮINs are used for specific types of trusts and estates under varying circumstances. If your business structure is a nonprofit, you are required to have an Employer ID Number for tax reporting purposes. If you have a C corporation, your business is viewed as a separate entity and you are required to get an EIN for tax reporting purposes. If you have an S corporation tax structure, you are required to have an EIN for tax reporting purposes. If your business structure is a partnership or multi-member LLC, you are required to get an EIN number because the LLC must file a partnership return and provide K-1s to members of the LLC. Learn more about EINs for Single-Member LLCs. It’s still recommended (and sometimes required) to open a bank account, to hire employees later, and in order to maintain your corporate veil. Single-member LLCs are required to have an EIN if they have employees. If your business entity is a single-member LLC without employees (or excise tax liability), then you are not required to get an Employer ID Number. Learn more about EINs for Sole Proprietorships. It's recommended that taxpayers get an EIN number in order to open a business bank account, build business credit, and lower the risk of identity theft. Sole proprietors with employees are required to have an EIN.Ī sole proprietor who is hiring employees should start thinking about when to form an LLC. Our sole proprietorship to LLC guide can help you decide when to take the next step in growing your business. If your business structure is a sole proprietorship without employees (and doesn’t file any excise or pension plan tax returns), then you are not required to get an Employer Identification Number (EIN).
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