This article is for someone starting a new business, or are an existing business, as a sole proprietor. Specifically, you are not incorporating, starting a partnership or an LLC.
Whether you are already in business as a sole proprietor or starting one, obtaining an EIN - Employer Identification Number - is a smart move. Besides affording you some privacy protection it also provides you with a level of legitimacy. Assuming you are going into business for the long-haul, then having an EIN will make you ready for any future employee hires or establishing any retirment plans.
Below are key points regarding getting an EIN. Consult with your tax accountant or a business attorney for detailed information about business entities and tax liabilities. You may also deep-dive regarding starting a small business on the IRS website.
A couple reasons why you want to apply for an EIN:
3 reasons why you will need an EIN as a sole proprietor
What information you need to get started:
Begin by reviewing information about the IRS EIN Assistant and then click Begin Application.
When completed, you will have the option of downloading the approval letter from the IRS or having it mailed to you.
You may also download IRS Form SS-4 to manually complete the application.
*This article does not constitute legal or tax advice. You should always consult a qualified professional in their respective field. The purpose of this article is to inform or remind you that there is something called an Employer Identification Number or EIN.
Musings, thoughts and perspectives from the Digital Marketing Partner team
Free Blog RSS Feed