Every U.S. business is required by the IRS to have an EIN (Employer Identification Number).
But are these questions, “What is EIN?”, “What is an EIN number used for?” and “How to get an EIN?” still on your mind?
It’s natural to think about the answer to another question: “I have my EIN, now what?”
What is an EIN Number?
EIN is a tax ID number assigned by the IRS (Internal Revenue Service). EIN is used to identify a business.
If you’re serious about starting your business, consulting a business lawyer first will save you thousands of dollars in taxes, administration costs and wasted time.
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If you’re a U.S. citizen and you have a Social Security Number (SSN), you can apply for your EIN here.
If you’re NOT a U.S. citizen and you don’t have an SSN or ITIN, you can learn how to get your EIN here.
At the end of this post, You’ll know what an EIN number is used for, what to do now that you have your EIN and the top 9 things you can do with an EIN.
What Can I do With My EIN Number?
- Get EIN to Open a Bank Account in the USA
- Get EIN to Apply for Business Permits
- Get EIN to File Tax Return
- Get EIN to Hire Employees
- Get EIN to Start a Corporation or Partnership
- You Can Withhold Taxes
- Get EIN to Apply For Credit Card
- Get EIN to Apply for Loans
- Get EIN to Create a Trust, Estate, or Non-Profit
Here’s what you can do with your EIN Number:
1. Get EIN to Open a Bank Account in the USA
Most banks require businesses to present an EIN to open any business bank account.
You will be turned away if you try to open an account without your EIN. This gives you a hint about what is the EIN number. That’s when you’ll know how important EIN number uses are.
Your bank will use the EIN to confirm with the tax authority the legitimacy of your firm.
Once you have the EIN for foreign entity your account can be opened anywhere in the world. This also means that now you know what is EIN number and what is an EIN used for.
Typically, U.S. banks will need someone to show up in person, with formation documents, and EIN for the company.
Each bank has different policies for dealing with businesses with foreign ownership. While traveling to the country of your business origin, bring all necessary documents for opening the bank account.
These documents may include your EIN letter and certificate of incorporation. Plus, you also need to bring two pieces of photo identification.
Also, generally, you can go to a U.S. bank that also has locations locally for assistance in opening the US bank account. By now, you must be able to answer what is an EIN number.
2. Get EIN to Apply for Business Permits
Perhaps, you want to apply and get business permits for your business. But you are still wondering what is an EIN number and what is an EIN used for. In this case, you will need it the most in your own business.
After knowing how to start a business in the USA for non-citizens, you should apply for your EIN number.
Before you open a business, you also need to apply and get the necessary licenses and permits for operating your business.
Virtually, every business needs some form of license or permit to operate legally. These may include business licenses, seller’s permit, or a zoning permit, among many others.
Licenses and permits vary by the type of business you operate and where your business is located. Every business needs a basic operating license or permit – even if you’re home-based.
3. Get EIN to File Tax Return
Without exception, every business must provide a valid EIN to file taxes.
An EIN is similar to the Social Security Number (SSN) of an individual. It’s a Federal Tax ID which is a number used by the IRS. The IRS uses it to identify your business for tax purposes. This is one of the answers to your question, “What is an EIN number used for?”
While applying for an EIN, you’ll be required to provide specific information. One such information includes applying for an EIN number for hiring employees. Once you have submitted the information, the IRS system will automatically enroll you in the Electronic Federal Tax Payment System (EFTPS). This will enable you to make deposits either by phone or online.
Want to file your tax returns but do not qualify for a Social Security Number (SSN)? You may need the ITIN.
Individual Taxpayer Identification Number (ITIN) is a tax processing number. This number is issued by the IRS for federal tax reporting only. It is not meant to be used for any other purpose. ITIN is used on federal tax documents to file taxes.
IRS issues ITIN to those who are required to have a U.S. taxpayer identification number. However, these individuals do not have a Social Security Number (SSN). They are also not eligible to get one.
EIN application is typically much easier and only takes 5 days to get it. Still wondering what is an EIN number and what is an EIN used for? The usage will be worthwhile only if you apply for this identification number.
On the other hand, ITIN is a lot more complicated application. That’s because it requires a copy of your federal income tax return. Besides, it takes 6 to 7 weeks to receive it.
Make sure to know whether you need an Employer Identification Number (EIN) or Tax Identification Number (ITIN)
4. Get EIN to Hire Employees
Want to expand your team of employees but don’t know about EIN?
If yes, there is a lot to know what is an EIN number. This way, you can answer this question, “What can I do with my EIN.” As an employer who is going to start a business in California, you will need it the most.
Besides knowing the LLC cost, employers must also have an EIN for reporting and paying federal and state unemployment and payroll taxes.
At a certain point, the expansion of your workforce is essential to achieve continued business growth.
Doing well and want to grow by hiring personnel? You’ll need to obtain your EIN to sustain your growth.
Besides this, you cannot hire employees if your business does not have an EIN. This means that there is no choice other than applying for one.
Employers must have an EIN for reporting and paying federal and state unemployment and payroll taxes.
Your employees will need to register with the social security scheme. To make this possible, they are required to provide the EIN.
5. Get EIN to Start a Corporation or Partnership
Are you interested in forming a professional corporation or partnership? If yes, you should look for a professional lawyer who provides the contract review service. Once this is done, the IRS requires you to apply for an EIN before starting the legal procedure. Now that you know what is an EIN number and what is an EIN used for, it’s worthwhile to apply for it.
6. You Can Withhold Taxes
To fulfill the requirements of an employer who can withhold certain taxes on income, you should have an EIN. That will enable you to file the relevant taxes to the tax authority as required.
7. Get EIN to Apply For Credit Card
No business in the United States can be issued a credit card without having obtained an Employer Identification Number (EIN).
8. Get EIN to Apply for Loans
If you are looking to apply and get a loan, most institutions will require you to have an EIN.
9. Get EIN to Create a Trust, Estate, or Non-Profit
If you are forming a Trust, and Estates and Non-Profit Organization, the IRS will require you to have an EIN. If you have your EIN, you can take help from a contract lawyer. The lawyer will help you ease the legal procedures.
What To Do Next
If you have a U.S. Social Security Number (SSN), you may apply for your EIN (Free Tax ID number online) from the IRS here.
If you do not have a Social Security Number (SSN), you can learn how to get your EIN here.
Got any other questions? Email me at email@example.com
EIN Number! Quick FAQ
What can I do with an EIN number?
An EIN or Employer Identification Number is a tax ID number assigned by the IRS (Internal Revenue Service). The EIN is used to identify a business for tax purposes. You can use this number to do the following:
- Open a Bank Account in the USA
- Apply for Business Permits
- File a Business Tax Return
- Hire Employees
- Start a Corporation or Partnership
- Withhold Employee Taxes
- Apply For a Business Credit Card
- Apply for Business Loans
- Create a Trust, Estate, or Non-Profit
Can I use my EIN to rent an apartment?
You can use an EIN to rent an apartment as long as you will be conducting business in the dwelling. This can become complicated, and you will need a lawyer’s help to figure out how to use your number for this purpose. I can assist you in this respect, as you will be using the space for both personal and work activities. Contact me for further details at firstname.lastname@example.org.
Can I use EIN instead of SSN?
You can use an EIN for business-related purposes instead of your SSN. According to the IRS, you can obtain an EIN if you are a business. An EIN can also be used if you need to apply for a business loan or obtain a business license or permit. EIN numbers also assist employers who must furnish 1099 forms to independent contractors.
Can I get an EIN without a business?
No. Because an EIN is designed for businesses and business tax reporting, you can use your Social Security Number (SSN) for you tax ID number.
Can I use my social security number instead of an EIN?
Yes. You can use your social security number (SSN) instead of an EIN if you are signing up for business credit or a loan. In fact, most issuers of business credit will base their decisions on your personal credit history, so they typically require that you furnish an SSN as well. I can help you with obtaining an EIN for business purposes. Check with me via email at email@example.com.
Can I use my EIN to buy a car?
You cannot use an EIN to purchase a vehicle, unless that vehicle is used for your business. Your EIN is used for business-only transactions. Therefore, you could use this number to apply for a loan for fleet vehicles or company cars. You can find out more about how you can get an EIN when you contact me online at firstname.lastname@example.org.
Can I use my EIN to apply for credit?
Yes. You can use your EIN to apply for business credit. However, you will usually need to include your Social Security Number (SSN) as well. Most credit card issuers, even if they provide business credit, base their decision on your personal spending habits. Therefore, in most cases, you will need to use your EIN and SSN for applying for a business credit card. Contact me at email@example.com for further details today.
Can I use my EIN to get a loan?
Yes. You can use your EIN to obtain a loan, as long as it is for business funding. You cannot use this number to take out a personal loan, as an EIN is only designed for business-oriented transactions. You can learn more about this number by asking a lawyer. Send me an email at firstname.lastname@example.org today.
Can I use my SSN for a tax ID?
Your social security number or SSN is your personal tax ID. You can also use this number if you conduct business as a sole proprietor. If you set up a business, such as an LLC or form a partnership, you should obtain an EIN, or employer identification number. I can assist you with getting an EIN for business purposes, including setting up a US bank account. Email me at email@example.com for further directions.
What is the purpose of an EIN?
An employer identification number (EIN) is used to identify businesses for tax and business purposes. Its main purpose is for use in reporting business taxes and for opening a bank account. I can obtain an EIN for you and help you form a business entity for your start-up anytime. Contact me at firstname.lastname@example.org for further details today.
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