When you're setting up a limited liability company (LLC), there are important things to keep in mind to ensure a successful formation and operation. We provide additional services that can help you get everything you need to start your business, including an Employer Identification Number (EIN).
Basically, an EIN is like a Social Security number for your business. An EIN is meant to enable the IRS to identify your business entity and track the reliability of your tax reporting.
What is an EIN?
An Employer Identification Number (EIN) is a unique nine-digit identifier assigned by the Internal Revenue Service (IRS) to businesses operating in the United States. Similar to a Social Security number (SSN) for individuals, an EIN serves as a distinct tax identification number specifically designed for business entities. It is used for tax filing, business banking, hiring employees, and other financial transactions.
Why is it important to have an EIN?
Having an EIN offers numerous benefits to your business. Firstly, it facilitates accurate reporting and tracking of your company's financial activities. An EIN allows you to file tax returns, fulfill tax obligations, and properly differentiate your personal and business finances. Additionally, an EIN is necessary if you plan to hire employees or open a business bank account.
What are the benefits of having an EIN?
1. Prevents identity theft - An EIN helps prevent identity theft because it separates your business finances from your personal ones. When you have an EIN, you no longer have to provide your SSN to prospective vendors and clients.
2. Open a business bank account - Most bank accounts require businesses to have an EIN in order to set up a business account.
3. Establishes business credit - Business credit is often the lifeblood of many small businesses, and an EIN is crucial to establishing it. Each time you use your EIN to apply for credit, your account appears on your business credit report. When you’re in good financial standing, your business credit gets a boost, increasing your chances of getting a lower-interest loan and better prices from suppliers.
4. Builds trust with vendors - Small businesses often rely on suppliers, vendors, and other partners to succeed. Partners often run an EIN check before doing business with a small business and having an EIN and a credit report shows them you pay your bills and are trustworthy.
5. Enables you to hire employees - If you plan to hire employees at some point in the future, you will need an EIN for payroll processing.
How can I get an EIN?
At Tailor Brands, we offer EIN services which can be purchased as an additional service that will be offered to you when applying for your LLC, or it can also be purchased separately.
If you are looking to obtain your EIN separately, all you need to do is log in to your Tailor Brands account and click on "EIN" on the left-side menu. You will then answer some questions and we will be able to get started on your application.
Obtaining an EIN for Non-U.S. Citizens:
For non-U.S. citizens, acquiring an EIN is possible, although the process may differ slightly and take a little bit more time. If you are a non-U.S. citizen without a Social Security number, you can apply for an EIN using either an Individual Taxpayer Identification Number (ITIN) or a previously obtained EIN.
To apply for an EIN with an ITIN, complete the required application form (SS-4) and submit it by mail or fax to the IRS. The ITIN will serve as your identification number for the EIN application.
If you have previously obtained an EIN for your business, you can use that existing number to apply for a new EIN, even if you are not a U.S. citizen. This option provides a streamlined process, as you can use your previous EIN to apply online or through other available methods.
Limitations for Online EIN Application without an SSN:
It is important to note that when applying for an EIN online, non-U.S. citizens without a Social Security number face restrictions. The online application process requires an SSN for verification purposes, which can be a hurdle for those without one. However, alternative methods, such as mail, fax, or applying through a third-party service, still allow non-U.S. citizens to obtain an EIN.
An EIN is a vital component of your business's identification and taxation system. It enables accurate record-keeping, simplifies tax obligations, and facilitates essential financial transactions. Non-U.S. citizens can acquire an EIN using an ITIN or a previously obtained EIN. While online application without an SSN is not possible, alternative methods ensure that non-U.S. citizens can still obtain this crucial identifier. Stay compliant and ensure a smooth operational journey for your business with an EIN.
Please note that legal laws and regulations are subject to frequent changes. While we aim to provide helpful information, it's important to understand that this page serves only for informational purposes and does not provide legal or tax advice.
More questions? Getting in touch with us is easy, whether you prefer sending an email to firstname.lastname@example.org, giving us a call at +1-888-355-5955, or simply clicking the Help button located in the bottom right-hand corner of our website.