What can I do with my EIN?

Back to FAQs

 

What can you do with a Tax ID number? Your Federal Employer Identification Number gives you the opportunity to do several things for your company, including:

  • Apply for a business credit card
  • File business taxes
  • Apply for business permits
  • Open a separate bank account for your business
  • Establish a credit history for your business

How To Get Your EIN

When you first start a company, you may think it’s easier to conduct business and file taxes using your personal social security number. However, this can entangle your personal and business finances as well as leave you vulnerable to fraud and identity theft. Additionally, the IRS requires businesses to apply for a unique nine-digit Employer Identification Number.

Generally, it’s wise to incorporate your business first. This identifies your company as a separate legal entity from yourself, offering your financial protection and increased privacy. Once you’ve incorporated your business, you can apply for your EIN.

Although the forms can seem intimidating, IRS EIN Tax ID Filing Service offers an easy process. Just answer the questions in our guided application and we’ll create the forms and file them with the IRS. We’ll email your new Tax ID number as soon as it’s assigned.

How To Use Your Federal EIN

Wondering how to use an EIN number once you have it? Include it on your IRS forms when you file taxes and use it when you hire employees. You can also use it to establish business credit and make your company’s financial transactions separate from your personal finances. Use your EIN to apply for a DUNS number that allows tracking of your business credit information.

You’ll also need your EIN to apply for business checking and savings accounts and commercial credit lines. Apply for business loans in your company’s name and pay them back in full and on time. This will establish a good credit history for your business.

Get your company started on the right foot by requesting an EIN. Apply for EIN with our simple online procedure and take the first step toward success.

Acquiring an Employer Identification Number (EIN number) is an important step for your business. Instead of using your personal social security number to do business, you are using an EIN number.

Having an EIN provides you with some measure of privacy. Disclosing your social security number to your clients may expose you to personal identity theft, whereas an EIN reduces the chances of you falling victim to this crime.

What can you do with your EIN?

You can file taxes using your EIN. You can apply for a credit card in the name of your business, open a bank account in the name of your business, and apply for business permits.

How do you establish credit for your business using an EIN?

  1. You want to incorporate your business. A corporation is a legal designation separate from you. A sole proprietorship is neither a partnership nor corporation. That is why you need to form an S corporation, C corporation, or limited liability company (LLC).

Since a corporation or LLC is a separate legal entity, you can start building credit for your business that way.

  1. Get your Employee Identification Number.

To check your EIN status, just enter your order number or e-mail address under Order Status on our website.

  1. Get a DUNS number. Dun and Bradstreet keeps a credit profile for your business, so by getting a DUNS number, you are allowing them to keep track of your business credit information.
  1. Start a checking account for your business. Be sure to keep your personal finances separate from your business ones. Open a savings account for your business, too.
  1. Get commercial credit by using your Employer Identification Number and DUNS number to open up accounts under your business.
  1. Borrow a small loan using your business savings account as collateral.
  1. Last but not least, always pay back your loans in full and on time.

Before long, you will start building up good business credit.

Select Your Entity Type to Apply for a Federal Tax ID Today