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5 Steps to EIN Blog

What is a EIN number and how do I get one for my business?


There are a 2 things that if you are operating a legal business in America you need have in place to be considered as such. Business entity and your EIN aka Tax ID number. 


So what is an EIN number and how do you get one for your business?


EIN number is another way of saying Employer Identification Number, from the IRS.gov.

An EIN a unique nine-digit number that identifies your business for tax purposes. 


Though not necessary in that order you should get your EIN number after you have created your business  entity. Don't have a business? Start one Here

 

You will need an EIN number to file taxes and to be able to open a business account,

 

It will help you create a business profile and full separation your business from your personal liabilities 


 Now we know what an EIN is and why it's necessary for our business, now how do we actually get one for free without someone charging us $100 ( That's what I paid for my first LLC that was created) I got you….

 

So the first thing you do is you go to IRS.gov and look to apply for EIN online, (remember that the IRS website shuts down at 10 p.m.) So if you do this after 10, don't be shocked if you can't get through.

 

 

The application has 5 steps

EIN steps
  • Identity
  • Authenticate
  • Address
  • Details
  • Confirmation

Steps to Create your EIN number (Video walkthrough here)

step 1

Identity

The first step is to identify the legal structure of your business. 

  • Sole proprietor
  • Partnerships 
  • Corporations 
  • Limited liability companies/ LLC
  • Estates  
  • Trusts

Steps to Incorporate your business article here


 Then why are you applying for a New EIN?

  • Select this option if you are beginning a new business.
  •  Select this option if you already have a business and need to hire employees.
  • Select this option if the reason for applying for the EIN is strictly to satisfy banking requirements or local law.
  • elect this option if you are changing the type of organization you currently operate, such as changing from a sole proprietor to a partnership, changing from a partnership to a corporation, etc.
  • Select this option if you are purchasing a business that is already in operation.
step 2

Authenticate

  1. Identify the owner of the business filling the form
  2. Name 
  3. Social Security Number
  4. Role in the Business
  5. Or if you a 3rd party filing on behalf of a business
step 3

Address

This has to match the address that was used when you filed with the secretary of state. So everything should match and make sure that all your information are consistent across your business documents


Fill out address form and they want to know if you have a different mailing address different from business address? 


The next page is information about

Business name,

DBA (doing business as), if it's different from the legal name,

the county and state where it was formed, which is already filled out from the previous step and finally where the company was created, and what month and year started

step 4

Details

This is really, really important because dependent on information you give them, it will let you know   what type of license you may need.

  1. Does your business on the highway motor vehicle with a tax bill, gross weight of fifty five thousand pounds or more?
  2. Now, does your business involve gambling or wagering?  
  3. Does your business need to file form seven 20 the exercise tax return?  
  4. Does your business sell or manufacture alcohol, tobacco, firearms?  
  5. And finally do you expect to have an employees in the next 12 months? 

It is important know if your company plans to hire immediately. 

Final Question

What does your business or organization do?  

Here are all the options,

  • Accommodations 
  • Casino, 
  • Hotel 
  • Motel 
  • Construction 
  • Built in residential structures, 
  • Finance 
  • Food service
  • Health care
  • Insurance 
  • Manufacturing 
  • Real estate 
  • Rental or lease and retail 
  • Social assistance 
  • Transportation 
  • Warehousing 

So  you have an opportunity or you could change the LLC designation. A single member LLC may not have a partnership return. So if you need to change your type of structure, we recommend you do so now otherwise, You will have to start over and reenter your information.

step 5

Confirmation

To summarized we started with the 

  1. identity,
  2. authenticate
  3. your business information that addresses your 
  4. details
  5. and finally the confirmation

When all the previous information is completed you will have a choice in how you want to receive your Employee Identification Number (EIN).

You have a choice where you can receive it online or you can have it delivered in 4 weeks to your mailing address

Always, always receive it online, because you could you literally get the PDF immediately, store it or you can email it to yourself.

If you don't have access to a printer or email, then you should receive by mail. But it takes up to 4 weeks, which is terrible in this age of 2 day Prime mail. If you choose to receive it online, it is immediate.

Once you submit, it will say please wait while your application is being processed, it could take up to two minutes once you submit this.

This is all the previous information we put in. But once you submit this, you should have your EIN number right on your screen.

And with that, we have completed the EIN process from A-Z. So this is all you need to do to be able to set up the post important number to get your business access to Banking, Taxes, Payroll, Credit, and Loans

About Derick..

Derick O.

Business Credit and Real Estate

I’m Ghanaian body building nerd who loves teaching  about  Business, Business Credit and Real Estate!