Finimpact

Conclusion

Now you know everything there is to know about the employer identification number or EIN. It is straightforward to obtain one for your business, and you can make an online EIN application or opt for another way of getting it. You’ll need the EIN for tax purposes, but you can use it when applying for business loans, business bank accounts, and more.

It would be best to protect your business EIN, as confidential information could be used for corporate identity theft. To check if your business is a victim of such crime, check your credit report regularly and never provide sensitive information to unverified third parties.

Frequently Asked Questions (FAQ)

How Does a Small Business Get an EIN number?
To apply for an EIN, use the online EIN application on the official IRS website. You can also do this by phone, mail, or fax for free.
Is the EIN number the same as the FEIN number?
Yes, EIN and FEIN numbers are the same number.
Is a Business Tax ID the same with EIN?
Yes, the business tax ID is the same as EIN and FEIN, known as an employer identification number or federal employer identification number.
Can You Run a Business without an EIN number?
Depending on the type of business, yes, you can run a business without an EIN. Single-person LLCs and sole proprietors don’t need it as they are taxed as individuals, but an EIN is necessary to open a business bank account or get a business loan.
Do Self-employed people need an EIN?
Self-employed people don’t need an EIN because they are taxed as individuals. Still, anyone looking to keep their personal and business finances separate will need an EIN number.

About the Author

Daniel Lewis

Daniel Lewis

MBA Accredited Investment Professional

Daniel Lewis is an MBA accredited investment professional who wants to assist small business owners to gain access to finance. After going through many channels for funding, Lewis has found that getting the first loan right is vitally important for future success.

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