How to Apply for an Employer Identification Number

Do you have your own business, or are thinking about starting one? You've probably heard about getting an employer identification number, or an EIN. Think of an EIN as the equivalent of a social security number for your business. This number is used to identify a business or an individual primarily for tax purposes. Another name for this number is the Tax Identification Number, or TIN.

If you have employees, you'll need an EIN for reporting payroll taxes, but even if you're a sole proprietor or own your own LLC, the EIN has advantages. One benefit of having an EIN as an individual business owner is that you can give out this number to third-parties instead of your social security number. It also helps in keeping your business finances separate from your personal finances come tax time.

Luckily, establishing your own EIN is a painless process that can be done by completing a simple form, or even right online at the IRS website. Learn more about how to create your EIN today.