Setting Up Your Consulting Practice

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Legal

Topic: Obtain Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a federal tax identification number for your business entity. You’ll need this EIN for many transactions such as setting up a business checking account, obtaining insurance, and registering as a vendor with clients. You can request a free EIN directly from IRS.gov.

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Transcript

Obtain an Employer Identification Number for your firm. Once you’ve registered your LLC with your state, you’re going to go to the IRS to obtain an Employer Identification Number, which functions like a Social Security Number for your business. The process is pretty simple and a link is in the show notes.

You’re going to need that employer identification number for all sorts of official business. When you want to get paid by a client, they’ll have you supply them with a W-9. Instead of putting your name and Social Security Number on that W-9, you’ll put your LLC’s name and your Employer Identification Number.

Once you get that document from the IRS with the Employer Identification Number, obviously, share that with your tax accountant.

Also, file that file in a safe place, because you’re going to want to access it over time.  Whenever you set up a business checking or get business insurance, or do other sorts of transactions, you may be asked to provide that actual PDF from the IRS.