Learn how to get an EIN or Tax ID number in about 3 minutes. This one is for a real estate investor, but with a few changes you can get an EIN # for any business
*IMPORTANT: Make sure your LLC is approved BEFORE applying for an EIN. If you do the EIN first, you’ll be attaching the EIN to yourself personally (as a Sole Proprietorship)... and therefore, your personal assets will not be protected.
IRS Online EIN Application:
https://sa.www4.irs.gov/modiein/individual/index.jsp
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* WHAT IS AN EIN (FEDERAL TAX ID NUMBER)? *
A Federal Tax ID Number is issued by the IRS to business entities. It is also known as an EIN, or Employer Identification Number. For simplicity, we will refer to it as the EIN.
An EIN is to a business what a Social Security Number is to an individual. It basically identifies your LLC to the IRS.
Even though it is called an Employer Identification Number, it does not mean that you have to have employees.
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* WHAT IS ARE EINs USED FOR? *
EINs are used for:
– Opening business checking, savings, or investment accounts.
– Filing taxes.
– Handling employee payroll (if applicable).
– Obtaining business lines of credit or business loans.
– Obtaining credit cards in the name of the LLC.
– Applying for business licenses.
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-- WHAT DOES AN EIN LOOK LIKE? --
An EIN is similar to a Social Security Number in that it has 9 digits. To differentiate an EIN from an SSN, there are 2 digits followed by a hyphen and then 7 more digits.
An EIN will look like this: 12 – 3456789
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HOW MUCH DOES AN EIN COST?
NOTHING, FREE, NADA
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* ALREADY HAVE AN EIN? *
If you already have an EIN (before forming your LLC), it’s most likely attached to a Sole Proprietorship. This is quite a common mistake.
You’ll need to close out that EIN and get a different one for your LLC (after your LLC is approved).
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* OPENING A BUSINESS BANK ACCOUNT *
You will need your EIN and your approved LLC documents (Articles of Organization, Certificate of Organization, Certificate of Formation, etc) to open a business checking account.
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* DISCLAIMER *
This information is provided for educational purposes only and in no way constitutes legal, tax, or financial advice. For legal, tax, or financial advice specific to your business needs, we encourage you to consult with a licensed attorney and/or CPA in your state.
Luis Leiva is the CEO of Culture Estate, one of the faster growing Real Estate agencies in New Jersey and the country. Luis is also a public speaker and trainer, he has trained and mentored Real Estate agents, entrepreneurs, and corporate clients. Luis also holds a NJ instructors License and has continuously spread his knowledge through this Youtube page and throughout Facebook, Instagram, and Twitter.
Luis’ Real Estate firm deals with first time home buyers, investors, Corporate clients. On top of that we also specialize in Sheriff’s sales, Foreclosure, REO, Short Sales. We also have agents in house that handle Luxury, and celebrity clients.
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