EIN (Employer ID Number)

Ron explains it all in just 60-seconds.

So what is an EIN, really?

An EIN (short for Employer Identification Number) is a unique nine-digit number the IRS gives your business. It’s basically your business’s Social Security number.

Whether you hire employees or not, you may still need an EIN for things like opening a business bank account, filing taxes, applying for licenses, or dealing with vendors. You get it directly from the IRS, and it’s free! (Though that hasn’t stopped shady websites from trying to charge people for it.)

If you’ve formed an LLC, corporation, or any kind of formal business entity, you probably need one. If you’re a sole proprietor, you might (depending on how official you’re getting and if you have employees.)

Receiving an EIN is the government’s way of saying, ‘Congrats, you’re real now. Here’s some paperwork and don’t forget to pay your taxes.’

How people actually use it in a sentence...

“Trevor thought running his Etsy shop was casual… Until the payment processor asked for his EIN. That’s when he panicked like he missed a test.”

Did you know...

You can get an EIN from the IRS in less than 10 minutes if you apply online and it’s completely free. But plenty of sites still charge people to “help” them fill out the form.

If your business starts with getting scammed, we’ve got bigger problems.