Why Your Solo Business Still Needs an Employer Identification Number (EIN)

An Employer Identification Number, or EIN, is a unique number assigned to your business by the IRS.

Basically, in a world of identity theft and crazies, having an EIN allows you to avoid handing out your personal social security number to strangers. It will also come in handy for things like completing W2s, opening a business bank account, applying for business credit cards (get those travel points!), incorporating, and establishing your independent contractor status.

Plus, not staring at someone blankly when they ask for your Tax ID tends to look more professional as well.

While you can technically use your personal social security number if you’re a sole proprietor, considering the entire application takes less than five minutes and you’re assigned a number immediately, there really isn’t a reason not to get one.

Info You’ll Need:

  • Business name

  • The legal structure for your business

  • Business address

How to Apply:

  1. Visit the IRS website.

  2. Complete the application.

  3. Pour a glass of wine (optional).

Jessica ZepedaComment