What is an Ein?

An EIN (Employer Identification Number) is also known as a Tax ID number. It’s similar to social security numbers, only it’s for businesses not individuals. An EIN is generally needed to open a bank account in the name of the business and properly pay and account for any wage/payroll employees of your company. At JMED Consulting Services, LLC, we help you get your EIN digitally.

Do you need an EIN if you own a business entity?

Most businesses do, especially if they have employees. However, if you own an LLC, even if it is a single-member LLC with simple accounting, you can use your personal social security number for tax purposes and for receiving payments from clients.

Still, sometimes even the simplest businesses can benefit from using an EIN. It’s a tax ID for your LLC and helps you keep things separate.

Businesses that should get an EIN:

• Partnerships: All kinds of general partnerships and limited partnerships need an EIN.
• Multiple-member LLCs: If you have a multiple member LLC, you may also have an EIN, irrespective of whether you have employees or not.
• Single-member LLCs: You will need an EIN if you have a plan to hire employees within the next 12 months. You may also get an EIN by using your own individual Social Security Number for tax purposes, in the case that your single-member LLC has no employees.
• LLC taxed as a corporation: If your LLC chooses to be taxed as a corporation, you’ll need to get an EIN.
• Sole proprietorships with employees: If you do not have an LLC or any other legal entity for your business and you run a simple sole proprietorship, having an EIN may still benefit you. However, you will need to have employees or plan to hire employees in the next 12 months.

How do I get an EIN?

To get an EIN, business owners need to file an IRS Form SS-4. JMED Consulting Services, LLC, offers a convenient service to help you apply for an EIN online.