An EIN (Employment Identification Number) is a tax identification number provided by the IRS for tax purposes. You will need open a bank account, hire employees, or accept payments from customer/clients, and make payments to vendors.
An EIN is necessary because the IRS needs an identifier to help keep track of corporate income, as well as payroll deposits made by the business in connection with its employees. Your bank will require an EIN letter before it will allow you to open a bank account in the name of the business. You will also need an EIN to open merchant processing accounts to accept payments online.
[title size=2]Related Formation FAQs[/title]
- Judge Overturns FTC’s Attempt to Ban Noncompete Agreements
- Financial Service Providers Imposed with $475 Million in Fines for Failing to Monitor Texts and Chats with Customers on Messaging Apps
- Latest New Rules for REITs and New REIT Disclosure Requirements Established by U.S. SEC in April 2024
- U.S. SEC Forms New Crypto Assets and Cyber Unit to Target Crypto Companies for Securities Violations
- New Colorado AI Regulation Act is the First Attempt Among U.S. States to Govern Artificial Intelligence
- U.S. SEC’s New Rules and Requirements for IPOs Amended April 2024
- U.S. SEC’s New Rules and Requirements for Portfolio Companies and Form PF Amended May 2024
- Top Critical Tax Mistakes to Avoid for LLCs
- Recent Updates to Private Equity Regulations
- Top Asset Protection Strategies for 2024
[title size=2]Other FAQs[/title]
- Formation FAQs
- Stock Issuance FAQs
- Investment & Fundraising FAQs
- Intellectual Property FAQs
- Corporate Governance FAQs
- Employees & Labor FAQs
- Licensing & Permits FAQs
- Tax FAQs