When you start a business, there are many things to take care of and paperwork to fill out. Many new entrepreneurs forget one critical task: getting an employer identification number (EIN). An EIN is like a social security number for your company, and it’s required if you want to open a business bank account or hire employees. This article will explain an EIN and why you need one for your business. We’ll also provide some tips on how to apply for an EIN. So don’t put off this critical task any longer – read on to find out everything you need to know about getting an EIN for your company!
What is an EIN?
An EIN is a nine-digit number assigned to a business by the IRS. It is used for tax purposes and is similar to a social security number for an individual. The first step in obtaining an EIN is determining if your business needs one. You may not need an EIN if you have a sole proprietorship or partnership. However, you will need an EIN if you are incorporated or have certain types of trusts.