Why File for an EIN Before You Make Your First Dollar

An employer identification number, or more commonly referred to as an EIN, acts as an identifier for business tax purposes. An EIN is similar to a Social Security number and is a requirement for most businesses. Many business owners choose to apply for an EIN online through a tax filing service as it is simple and convenient.

What is an EIN Used For?

It is important to file for an EIN immediately, as soon as you start up your business. Without an EIN, you are unable to accomplish many tasks as a business. Those tasks include but are not limited to:

  • Applying for a business license
  • Opening a business bank account
  • Filing state taxes
  • Filing electronic tax payments and returns – an EIN acts as an identifier on all tax returns
  • Filing tax reports – an Employer ID Number is required on all federal employment/payroll tax forms and federal income tax forms

Is an EIN Required for Your Business?

Most, but not all businesses must have an EIN. As stated by the IRS, your business is required to have an EIN if they fall under any of the following circumstances:

  • You have or plan to have employees.
  • You file employment taxes, tobacco, alcohol, firearm, or excise tax.
  • Your business is taxed as a limited liability company, partnership, or as a C corporation.
  • Your business has a Keogh plan.
  • You withhold taxes on income to a non-resident alien
  • Your business is involved in estates, trusts, non-profit organizations, real estate conduits, employee plans, or farmers’ cooperatives.

A sole proprietorship with no employees does not require an EIN as the Social Security number acts as their business taxpayer ID.

Fast and Easy Process

Filing for an EIN has never been so easy. Simply head to GovDocFiling and follow the simplified instructions to have your EIN delivered to your email the same day.