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Employer ID Number (EIN): 3 Things Small Business Owners Should Know

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By Neetal Parekh on October 21, 2009 9:50 AM

As you read this post, there is a small business in its final stages of closing shop.  And there's an entrepreneurial-hopeful ready to take the plunge.  The legal and financial models of small enterprise in America make small businesses more fluid and adaptable than their large-scale counterparts.  In that vein, we revisit some basic topics in small biz that can be useful to entrepreneurs, in whichever stage of the small business life cycle they find themselves in.

If you are standing at the start line, raring to go... you may have heard of the concept of a small business Employer Identification Number or EIN.  Here are three basic things you should know about Employer Identification Numbers and resources to help you learn more and even apply for one yourself.

1. An EIN is your permanent number and can be used immediately for most of your business needs, including opening a bank account, applying for business licenses, and filing a tax return by mail.

2. Employer Identification Numbers (EINs): Who Needs Them and How Do You Get One?  If the concept of an EIN is all new to you, take a look at this post to get a clearer idea of what an EIN and useful links to help you apply for one.

3.  A sole proprietor can have only one EIN, regardless of the number or types of businesses you operate.

The EIN is a relatively quick and painless initial step in launching your small business.  Once you graduate from the EIN, you can move on to more complex issues such as taxation and hiring employees...

 

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