What can I do with my EIN for my small business? EIN is a very important tool for business as it provides legitimacy to your business.
No matter your business size, having an EIN is crucially important. It gives professionalism and impressment when you do business with your client or partner.
EIN or Employer Identification Number is a tax ID number assigned by the IRS. It is used for business identification. For US citizens with Social Security Number (SSN) are allowed to apply for EIN.
The process to apply is taking less than 15 minutes. IRS will issue printable EIN information and you can take it to the bank or provide a license to vendors or clients.
The main purposes of EIN are to report business taxes and open bank accounts. However, EIN has a lot of things that can do for your business.
What things that you can do with your EIN?
- Use EIN to open a business bank account
When you want to open a business account, most of the bank asks EIN. You will be rejected if you want to open a business bank account without EIN.
EIN is used to confirm the legitimacy of your firm and tax authority. Each bank has different policies to deal with business.
The documents include EIN and the certificate of the corporation. From this, you already know that EIN is important.
- Use EIN for business permits application
Well, perhaps you need a business permit for your business. In this case, you will need EIN for most of your business.
When you open a business, it will need a permit or license to operate legally. Every business has a basic operating permit even if a small business or home business base.
- Use EIN for Tax Return Filing
To file taxes for business, EIN must be present without exception. The EIN is like a Social Security Number for the individual.
With EIN, the IRS will identify your business classification and tax. When applying for EIN, you should provide specific information including applying the EIN for employees hiring.
As the information is submitted, the IRS will enroll automatically in their Electronic Federal Tax Payment System (EFTPS). This system enables you to make deposits easily by phone or online.
- Credit Card application with EIN
There is no business in the United States that is able to issue a credit card without obtaining an EIN. Have EIN means your business has an identity.
Business credit is similar to personal credit. Instead, measure the personal financial habit, the business credit evaluate the company history and financial responsibility in financial. It has a credit history and credit report.
- EIN for loan application
When you involve EIN in your loan application, the process will be a speedup. As you have a business bank account, the lenders need EIN to make sure you have loan funds and periodic loan payment ability.
- EIN to start a partnership or corporation
If you consider forming a professional partnership or corporation, then consider using EIN. Before you start the legal process of the partnership, the IRS asks you to apply EIN firsts.
- Hire employees easily
When you need to hire employees, you will need EIN. Even if you are not in a hurry to hire employees, getting an EIN is always a good idea as you think about the future.
EIN can help you to set the payroll system as soon as you hire the first employees. You can’t hire an employee if you do not have EIN.
The employers must have EIN to report and pay federal and state unemployment and payroll taxes.
- Get benefit as a Non-US citizen without a social security number as an overseas entrepreneur
To get an EIN, the foreign national needs to contact the IRS. With EIN, foreign nationals can open a business bank account before getting SSN.
- Prevent the theft of identity
EIN works well to prevent the theft of identity. EIN separates personal finance from business finance. When you have EIN, you will not need to provide personal SSN to vendors or clients when you do business with them.
Instead, just give them your EIN. When you have EIN, it will keep your SSN more secure and reduce the opportunity of a thief to steal SSN and access the finance.
From the statement beyond, you can draw the big line on what can I do with my EIN number for business growth and operation.
It protects your business and gives the flexibility of adding employees, taking on your partner or clients, and growing business in the future.
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How to get EIN?
From the benefit of EIN and things you can do with EIN, you may consider getting one. If you want to make one, you can make it free from the IRS official website.
You can apply by mail, phone, or fax. Applying online is easy and it takes a few minutes. A person that applies EIN should be the owner, officer, or principal of the business. You are also able to sign a release to a third party to apply on your behalf.
When you apply online, beware of the website or services that charge you for getting the EIN. It could be a scam. Once EIN is issued by the IRS then it will be effective immediately.
You can use it right away to open a bank account, apply for loans, and many others such as stated previously. In most cases, the remaining business course needs EIN.
You need to report to the IRS and ask for the new one if the structure or ownership changes. Have EIN and never use it and do not have any negative repercussions.
You are available to apply for a loan, open a bank account, and make a corporation or partnership without EIN.
However, usually, it will take a long process and stricter regulations. Getting an EIN is easy, fast, and free. Considering what can I do with my EIN number, it is best to start to think about getting the new EIN for your business.