EIN and Entity Setup Assistance
Starting a business can come with a lot of unexpected hurdles that you need to overcome just to get the business off the ground. From financing to taxes, there's a lot of confusing paperwork and processes that need to be completed correctly to ensure your new business is starting off on the right foot. Two essential parts of this process that are easy to overlook are setting up an EIN number and establishing a business entity. With Credit Biz, getting an EIN and entity setup becomes simple as we walk you through each step of the process to ensure it is done right. Read more about these two crucial aspects of establishing a business, then contact us with any questions you might have.
What is an EIN Number?
An EIN number, also known as an Employer Identification Number, is a unique nine-digit number that is assigned to a business by the IRS. This number is used to identify businesses for tax purposes and is required for most businesses in the US. You will need to have an EIN number before you can open a business bank account, apply for business licenses or permits, hire employees, or file your taxes.
How to Obtain an EIN Number
The process for obtaining an EIN number is relatively simple and can be done entirely online through the IRS website. You will need to have some basic information about your business ready, such as your business name and address, the type of business entity you have chosen, and the names and Social Security numbers of any principal owners. Once you have this information gathered, you can begin filling out the online application.
After you have submitted the application, you will receive your EIN number via email within four weeks. In some cases, you may be able to get your EIN number immediately if you apply by telephone or fax. It is important to be aware that the application must be completed in one sitting, it can not be saved and returned too. If you are unsure about how to fill out the application, contact Credit Biz for help.
Why is it Important to Establish a Business Entity?
There are several reasons why it is important to establish a business entity, such as liability protection and tax benefits. When you establish a business entity, you are creating a separate legal entity for your business that is separate from your personal finances. This separation provides some protection for your personal assets in the case that your business is sued or incurs debt. In addition, depending on the type of business entity you choose, you may be able to take advantage of certain tax benefits. For example, S corporations can pass corporate income through to shareholders, who are then only taxed on their personal level, rather than being subject to double taxation.
How Credit Biz can Help with Your EIN and Entity Setup
At Credit Biz, we can help you with every step of the process to ensure that your EIN and entity are set up correctly. We will work with you to determine the best type of business entity for your needs and walk you through the application process for obtaining an EIN number.