It is not a legal requirement to have an EIN, but it’s highly recommended. Having one allows you to open bank accounts and apply for credit more easily, while also protecting your personal information. It simplifies the process of filing taxes by allowing you to file as a business instead of through your personal social security number (SSN).
However, it is also possible for a business owner to use their social security number as their tax ID, but this isn’t recommended since if anything happens with the business, your SSN could be compromised.
Since many banks and creditors ask for this information before they will do business with you, having an EIN can save lots of time and hassle through the best EIN number service.
Why you Need to get an EIN for Your Business Today
1. Easy to get an EIN
It only takes a few minutes to apply for your EIN through the best EIN number service. You can do it all online using the IRS website. If you prefer, a paper application is available as well, but the process is still straightforward and simple whether you choose one or the other.
2. Free from the government
The IRS doesn’t charge you for this service, so it’s free from them! While there may be charges from the company you go through to get your EIN, that’s a completely separate fee and not related to the IRS. Some companies will even offer this service for free when you sign up for other services with them, so be sure to ask if they do.
3. Increases credit score and helps build a credit history
Having an EIN can help increase your FICO score and help it grow over time. This is especially true since most creditors and lenders use your SSN as their identifier in doing business with you; therefore, using an EIN instead provides more security and
4. Helps you feel more professional
Having an EIN is often seen as a sign of professionalism and responsibility, which can make a difference in your business. Being taken seriously can be crucial in some situations or fields, so this number may help give you the kind of reputation you need to succeed, especially when it comes to funding and getting investors on board with your ideas.
5. Easier for banks to provide services
Banks will have an easier time working with your business if they know that you have an EIN. In order to open a bank account or apply for credit, they will ask for your SSN, but when you have an EIN, they’re able to do business with you without compromising your personal information—and sometimes they may even be willing to offer special services for having an EIN.
In conclusion, it’s highly recommended to apply for your own EIN so you can have a professional and responsible business identity. Not only will banks and creditors appreciate this more, but it provides a higher chance of getting the funding and resources you need in order to help your business grow over time.
To learn more about how getting an EIN could benefit your business, get in touch with one of us to get the best EIN number service quickly and conveniently.