When you are dealing with other companies, an EIN shows that you are serious about your business and that you are prepared. Your company looks more professional and trustworthy.Again, this is something lenders like to see. Just like your personal credit history is tied to your SSN, your business builds its own business credit history with an EIN. Your business can build its own credit.Getting an EIN and a bank account helps you persuade them that you’re a good bet. Lenders like to see that potential borrowers have a steady stream of income and good banking habits. That means thieves have fewer chances to steal your identity and wreck your personal credit. Using your company’s EIN on company financial documents and applications means you don’t have to use your SSN. The most common reason to get an EIN is so that your company can have its own bank account.īanks use these numbers in the same way they use social security numbers: to track financial activity and ensure that both they and the government can determine what individuals are responsible for any given business account.Īpart from those vital functions, EINs also have other benefits: In most cases, though, you’ll want to get an EIN. If you are the only person running an LLC, you have no employees, and you’re not using specific federal tax laws, you probably don’t need an EIN. Is an S corporation, C corporation, or an LLC being treated like them for tax purposes.For example, you need an EIN if your company: Some companies need them for specific legal purposes. Unlike formation documents or registered agents, an EIN is not one of the basic things every business needs. An EIN is the same kind of number but is issued for companies rather than people. When you file your tax returns with the Internal Revenue Service every year, for example, you include your SSN so the government can identify you. Perhaps the best way to think about an EIN is like a social security number for your business. Skip to instructions Step 1: Determine if you need an EIN for your North Carolina business
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