EIN & Business Registration

An Employer Identification Number (EIN) is your business's federal tax ID. It's required for most business activities: opening bank accounts, hiring employees, filing taxes, and applying for licenses.

What Is an EIN?

A 9-digit number (XX-XXXXXXX) issued by the IRS. Used to identify your business entity. Required for LLCs, corporations, partnerships, and sole proprietors with employees or excise tax obligations. Sole proprietors without employees can use their SSN instead, but getting an EIN is still recommended to protect your personal identity.

How to Get an EIN

1. Online (fastest): IRS website — apply at irs.gov/ein. Instant issuance. Available Mon-Fri 7am-10pm EST. Must have a valid SSN or ITIN.
2. Fax or Mail: Form SS-4. Fax: 2-4 business days. Mail: 4-6 weeks.
3. Phone: 267-941-1099 (for international applicants only).

Free — never pay for an EIN. Scammers charge $50-200 for something the IRS provides at no cost.

State Registration

After getting your EIN, register with your state's business division (usually the Secretary of State or Department of Revenue). Requirements:

• LLC: Articles of Organization + $50-800 filing fee.
• Corporation: Articles of Incorporation + $50-500 fee.
• Doing Business As (DBA): Register a trade name if operating under a name different from your legal name.
• Registered Agent: Required for LLCs and corporations — a person or service that accepts legal documents on your behalf.

Business Licenses & Permits

Depending on your industry and location, you may need additional licenses:

• General business license: City or county level.
• Professional license: For regulated professions (real estate, accounting, law, healthcare, contracting).
• Sales tax permit: Required if selling taxable goods or services. File sales tax returns based on revenue in each state.
• Health department permit: Food service, salons, childcare.
• Home occupation permit: If running a business from a rented home or in a restricted zone.

Opening Business Accounts

With your EIN and formation documents, open:

• Business bank account: Separate business checking and savings. Required for LLCs and corporations (piercing the corporate veil risk if commingled).
• Merchant account: To accept credit card payments. Or use Stripe, Square, PayPal.
• Business credit card: Build business credit, earn rewards, and track expenses separately.

Annual Compliance

• Annual report: Most states require an annual report with Secretary of State ($20-500).
• State franchise tax: Some states (CA, TX, NY, DE, IL) levy a minimum tax on LLCs/corporations regardless of income.
• BOI (Beneficial Ownership Information): As of January 2024, most LLCs and corporations must file BOI with FinCEN — reporting who owns or controls the company. Penalties for non-compliance: up to $500/day.