An EIN is a nine-digit number assigned by the IRS and used to identify your business. It’s like a Social Security number for your business and, in many cases, can be used in place of your Social Security number on forms and other types of paperwork.
We recommend that all businesses apply for and use an EIN..
If you are a sole proprietor, you need an EIN if you have any of the following:
- A retirement plan,
- Have or are planning to buy an existing business
- You are a partnership, LLC, or PLLC
In addition, some states require you to have an EIN to open a bank account.
To apply for an EIN, the only information you need is the type of company your business or practice is. Applying for an EIN is an online process that, in most cases, will provide you your EIN on the same day you apply for it.
When applying, PLLCs should select the “LLC” option on the application. When you are done, make sure you SAVE a copy of the generated letter. It is the ONLY time you will get a copy without requesting it from the IRS.