![]() You can apply for an EIN online, by phone, by fax, or by mail. Overall, having an EIN may provide your business with more credibility. An EIN helps separate business and personal finances, which is important for tax and liability reasons.įurther, if you plan to apply for a loan for your business, you will likely be asked to provide your EIN. The EIN is used to identify the business on various tax forms.Īdditionally, banks usually require an EIN to open a business bank account. Getting an EIN number for a business may seem unnecessary, but an EIN is essential for most businesses operating in the United States.īusinesses with an EIN are required to file annual tax returns with the IRS. Purpose of Employer Identification Numbers Like the federal EIN, the state uses this number to identify businesses for tax purposes and monitor compliance with state tax laws. In addition to a federal EIN, Texas requires businesses to obtain a state EIN. ![]() On the other hand, if your business has employees and operates as a partnership, corporation, or multi-member LLC, you will need to obtain an EIN. Instead, you can use your Social Security number (SSN) to identify your business for tax purposes. In that case, you may not need to obtain an EIN number for the business. Suppose you operate a sole proprietorship or a single-member limited liability company (LLC) in Texas and do not have any employees. ![]() It is also known as a federal tax identification number (FTIN) and is used to identify your business for federal tax reporting and other business-related transactions. Need Help Setting Up Your Business? State or Federal Employer Identification NumbersĪn employer identification number, or EIN, is a unique identifier assigned by the IRS for sole proprietors, partnerships, corporations, and non-profit organizations.
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