Take a look at the second video in our video series about setting up your new business. Your Employment Identification Number (EIN) is an important part of your business. It is your business’s social security number. You will use this EIN with the Internal Revenue Service, banking institutions, and may other entities. It is important to keep this number secure and to keep the letter that the IRS sends you. The letter that provides you with the EIN will be requested by many organizations as evidence the number is correct.
The most important part about getting an EIN is making sure to tell the IRS how you want to be taxed. When applying for the EIN, your form will ask about what kind of business entity you have and who is the responsible party.