When to apply for an EIN?

Written By Tanya Akimenko

Employer Identification Number

"Did you start a business?" - would be my first question. If you started a business, applying for an EIN should be your 2nd step, right after you register your business with your state.

Determine that your business is no longer a hobby. Maybe you started it out as a hobby, but it's turning out into a business.

Opening a bank account. It is crucial to understand that you need to keep your personal and business finances separate. You shouldn't be paying your personal expenses out of your business account. As far as I know, most banks will require for you to have an EIN number before they'll open an account.

Hiring employees or even sub-contractors. Why would you want to use your social security number instead? It's a good idea to get an EIN number to issue the 1099 forms or to have the 1099 form be issued to you.

Rules for applying online:

  • One EIN per responsible person per day

  • Business is located in United States

  • Responsible party has a valid Taxpayer Identification Number

  • This means a social security number

  • An Individual taxpayer identification number

  • Or even another EIN (like an LLC)

  • Application has to be completed in one session

  • It does expire and you’ll have to start all over again

  • Very important to have all of your information before you start applying

  • After you complete the application, you’ll get an EIN immediately.

VERY IMPORTANT:

Download, save, or print your EIN notice.

Apply at:

www.irs.gov

Tanya Akimenko
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