If you’re operating a business, I highly suggest obtaining an EIN (Employee Identification Number).
What is an EIN?
An Employer Identification Number (EIN) is a nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity. It's like a Social Security number for your business, but it's not the same thing. Your EIN is used for filing taxes, opening bank accounts, hiring employees, and more. This becomes your business’s identifier and is in lieu of using your Social Security Number (which I personally wouldn’t want floating around on W-9s).
Who Needs an EIN?
Not all businesses need an EIN. If you're a sole proprietor with no employees and you file your taxes using your Social Security number, you may not need one. However, there are many situations where an EIN is required, such as:
If you have employees
If you file any of the following tax returns: employment, excise, or alcohol, tobacco, and firearms
If you withhold taxes on income, other than wages, paid to a non-resident alien
If you have a Keogh plan
If you operate your business as a corporation or partnership
So how do you get one? You can obtain one for free at the IRS’s website in about 5 minutes. It’s important to note - if you also plan to incorporate or set up an LLC, do that first since you’ll need to provide the name of your company when you register for the EIN.
After applying, you’ll get an immediate EIN confirmation which you’ll need to save in your records.
What happens if you lose your EIN? No worries! Just call the IRS at 1-800-829-4933 during their regular business hours, and after verifying some business information, you’ll be able to obtain the number again.
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