What Every New Business Needs
What is an EIN?
One of the key responsibilities that every new business owner has is obtaining an Employer Identification Number, or EIN, from the IRS. An EIN, also known as a Federal Tax Identification Number, is a unique nine-digit number that is used to identify a business entity in the US. It allows the business owner to open a business bank account, apply for business licenses and file taxes.
Who needs an EIN?
According to the SBA, an EIN is needed by any business that retains employees. However, non-employers are also required to obtain one if they operate as a corporation or partnership. If you aren’t sure whether you need an EIN, review this guide from the IRS here. If you meet any of the criteria in the list, you will need to apply for an EIN.
How do you apply for an EIN?
If you are a domestic applicant, you can receive your EIN immediately by applying online via the IRS EIN Assistant. There is no charge for this online tool and as soon as your application is complete and validated, you’ll be issued an EIN.
However, if you are an International applicant, you will have to apply by fax or mail. We recommend that you work with an experienced accountant in the US that can guide you through the process.
As your business grows, be sure to visit the IRS website and its resources for a complete list of who needs an EIN and how to apply for one. We recommend that you apply for one as soon as you start planning your business. This will ensure there are no delays in getting the appropriate licenses or financing that you may need to operate.
With 20+ plus years of experience in assisting businesses establish and significantly grow in new markets, ReachOut Business Solutions is committed to offering effective strategies and solutions for your business needs. Contact us today to start marketing your business or expanding your brand to the U.S. market.
