There are several ways to interpret when a business opens. For example, it may be at a ribbon cutting ceremony, the day you receive an important loan, or make your first sale online. More to the point, our clients routinely want to know: “At what point in business formation do I need to get an EIN?”
While there are clearly different ways to interpret when a business begins, business owners should have their EIN well before the business opens. More specifically, many important milestones you will encounter can’t be completed without an EIN.
Why You Need an EIN
EIN is an acronym for Employer Identification Number, and the Internal Revenue Service (IRS) uses this nine-digit number to track the tax obligations of various legal entities.
Business owners will need an EIN to perform all of the following tasks:
As you can see, an EIN is fundamental to establishing a business, and it should therefore be obtained as soon as you decide to start a business.
There are several ways to go about getting an EIN for your business. The easiest and fastest way is to register for an EIN online.
Other application processes can take up to two weeks to complete; if you get your EIN online you can start using your tax ID number the next day.
If you ever lose or misplace your EIN, you can always look it up online using our secure account portal. Use this portal to check your EIN status online anytime you need to.
At what point in business formation do I need to get an EIN? The easiest answer for new businesses owners is, as soon as possible. Don’t wait to get this important tax ID.