Question:

What is an EIN?

Answer:

An EIN is an Employer Identification Number, and it is essentially your Social Security Number for your business. An EIN is used for getting a bank account for your business, for payroll purposes if your business if going to have employees, filing taxes, and any other government filings for your business.

Getting an EIN is actually a fairly straightforward process. You can get an EIN by going through the online portal for the IRS and giving them some information. Sometimes the online portal can give you a little trouble if you’ve used your Social Security Number to get another EIN. However, you’ll still be able to get an EIN by faxing in your EIN request and information to the IRS.

To recap, an EIN is your Employer Identification Number, and it’s used as basically a Social Security Number to identify your business in a number of ways. You’re going to want an EIN for your business because it’s yet another type of protection that helps separate your business from yourself for liability purposes.