Step 4. Get an EIN number

An EIN is used when opening a business checking account, establishing a line of credit and even when working with suppliers. Instead of your social security number, your business EIN will be used. All of the above help to build your business credit

Getting Your Employer Identification Number (EIN)

You will need an Employer Identification Number, Tax ID also called an “EIN.” This will be used as your business credit identity. Depending on your business, you will also need licensing for the city, county, and state where you operate your business.

Federal EIN and Licensing

Your business must have a federal tax ID, regardless of whether you have employees. The federal ID is also called an EIN. Essentially, it functions like a Social Security number for your business. You can set up your Tax ID through the IRS’s website. You will then use your Tax ID to open business accounts and build your credit foundation.

If you already have an EIN, you will need a new one if:

– Your business is currently going through bankruptcy in any form.
– You have formed a new corporation or changed the name of the company.
– You have taken on a new business partner and will operate the business as a partnership.
– You have purchased or inherited an existing business that you plan to operate yourself.
– Take the time to make sure all your business credit reporting is done correctly. Verify your standing with agencies, banks, and trade credit vendors, and have all your accounts listed with the exact same Tax ID number.



  • To Do – Obtain Your Federal EIN number

    In order to build the credibility of your business, you need to have a Federal EIN. This can be obtained through a simple process by using the IRS’s website. You can easily complete this task yourself, but if needed, you can have a service provider complete the task for you.

    A – If you are working with an accountant or paralegal to setup your legal entity, they can complete the process of obtaining an EIN for you.

    B – You can also complete an SS-4 form, available from the IRS.

    C – One of the quickest methods is to apply online at irs.gov. You can receive your EIN in minutes.

To Do List To Complete In This Step

1. Apply and obtain your EIN number

2. Your EIN number has to match state records.