Why should you get a Federal Tax ID (EIN)?
Mostly Required For business Banking
Most banks ask for a federal tax ID before opening a business account, or even for a line of credit.
Keeps you Protected from Identity Theft
As a Sole Proprietor, you can use a federal Tax ID to keep your own Social Security Numbers Private.
Essential To Most Businesses
If you or your business hire employees or need to file taxes, you will probably need to have a federal tax ID from the IRS.
Who needs a Federal Tax ID?
The IRS requires most business entities to use a Federal Tax ID (EIN)- Mainly Corporations, most LLCs, and some Sole Proprietorships. A Federal Tax ID offers tons of benefits. Its also mainly required when opening up a business account at a bank.
What is a Federal Tax ID?
A Federal Tax ID (also known as the Employer Identification Number or EIN) is a unique number assigned to a business/organization by the IRS. The business/organization then uses it's EIN similar to how a person uses their Social Security Number.