An EIN is an Employee Identification Number. You may not HAVE to get one, as they’re really for banking purposes and hiring employees. But here’s the thing, when you fill out a W-9 to send to a client to be paid you have to put your social security number on there. It’s a requirement so they know who you are and can file it with the government come tax time. I don’t know about you, but having your social security number emailed to various people doesn’t sit well with me. This is why we encourage obtaining an EIN number for your business. It’s FREE and easy.
We want to emphasize FREE here because many sites may try to fool you if you search “EIN”. This is a free service that literally takes seconds to get on the IRS website. Click HERE to apply online. You can apply online, by fax or telephone. But hello, we’re bloggers, we like the online way. It’s fast and simple. Here’s the steps you’ll follow.
- Identify the type of business – for many of us, that’s sole proprietors or partnerships (LLC will fall under this)
- Select your reason, usually you started a business
- Your name
- Input your business name
It’s free and simple. This EIN will then be sent to you and we recommend writing it down somewhere safe to easily reference. Also update the w-9 that you send out to clients when being paid. That’s it!