An EIN number is a nine-digit number required by the IRS for businesses in the United States. The Employer Identification Number is mainly used as identification of your business by the IRS, however, the number has other uses. Once you apply for an EIN online, you will have the number you need to use for your business. Below are the top five things you should know about this number as it is associated with your business.
Open a Business Account
One way you can use your new EIN number is to open a business bank account. Most banks will require your business to have an EIN number before you will be allowed to open up a new account for the company.
Another use of your EIN number is for business permits. If you need permits for your business based on the type of company or location, you will need an EIN number. With this number, you will be able to apply and secure such permits for your company.
With your EIN number, you can file your taxes with ease. An EIN number for a business is considered to be like a Social Security Number for an individual. With this number, you can file taxes for the business as well as focus efforts on employee payments and tax needs.
Credit Card Needs
To help with expenses, a credit card for your business will be needed. Applying for a credit card requires an EIN number when considering a company card. The EIN number will ensure that a card is issued to your business so that purchases can be made as needed.
Applying for Loans
An EIN number is also required by banks for a business to be able to apply for a loan. If your business will need monetary assistance via a loan, the EIN must be secured first before applying.
As you can see, there are many ways that an EIN number is used within a business. Be sure to file online to secure the number you need to get started.