If you did not have your social security number (SSN), you would still be you. You wouldn’t be able to do a lot of things, though. Most companies could not hire you, even as an independent contractor, for example. It would be much harder to apply for a passport or a driver’s license. A business needs a Tax ID number, just like you do, except for a business, so it is called an EIN instead of an SSN.
Why Does a Business Need an EIN?
An employer identification number (EIN) helps the IRS identify businesses. The business needs to use its EIN to file taxes and to pay employees. A business Tax ID number is not as private as an SSN. For example, you can look up the EIN of a business online.
How to Get an EIN
If you need a business Tax ID filing number, it does not take long at all to get one. You can just fill out an EIN application online and get your EIN in one hour. The hardest part of applying for an EIN is choosing a business entity type.
The Gov Doc Filing website has information about the various types of business entities. Some of them even apply to entities that do not fit the conventional definition of a business. For example, you should apply for a Sole Proprietorship EIN if you hire household employees like a babysitter or pool cleaner. If you have set up a trust account for your children, it also needs an EIN.
An EIN makes your business legal and official. It is quick and easy to get an EIN when you are starting a business. Just fill out an EIN application form on the Gov Doc Filing website.