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Gone are the days of waiting weeks to get a business number, also called EIN (Employer Identification Number); you can now apply online and have your number within minutes. This number is used wherever you would use a Social Security number, but for a business instead. It can be used in signing up for a bank account, applying for a loan, filing a tax return or paying payroll taxes. |
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Step 1 Decide if you need a number. An Employer Identification Number, or business tax ID number, is required if you are paying any kind of sales tax or employee payroll tax. It is also required if your business is a partnership or corporation. If you do not have one, you will have to use your Social Security number to open bank accounts and other similar tasks. Even if you are not required to have one, it can help in separating your business from your personal matters. Step 2 Apply for a number in one of two ways: Go to the IRS website and apply online or complete IRS Form SS-4. Fill in your name, trade name, business address and type of entity. Answer questions on why you are applying and on paying wages to employees. If you apply online, you will have your number within minutes, although it will take a couple weeks to appear in the IRS system. Step 3 File a copy of the number in a safe place. This number will be used a lot, especially during the start-up phase of your business. |
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