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What is an EIN?

And, why do I need one?

In this audio snippet, you'll hear about:

• Employer Identifaction Number
• Also called Tax Identification Number
• IRS identification, much like your social security number
• A Corporation will always need to get an EIN
• A partnership will always need to get an EIN

Travis: Great. So the first steps are really what your specialty is. I would like to –– if it's all right with you –– expand a little bit on some of those individual steps. Can you tell me what an EIN is, and why do I need one?

Jake: An EIN is an Employer Identification Number. When you form a company, it's really treated as a separate individual from yourself, so it needs to be able to be identified by the IRS –– much like your Social Security Number. So the IRS will assign it an Employer Identification Number, or EIN. Sometimes it's also called a Tax Identification Number. The rules for when do you need it and at what point do you need it, it really comes down to: if you're a corporation, you will always need to get an EIN.

Travis: OK.

Jake: If you're a partnership, you will also need to get an EIN.

Travis: OK.

Jake: If you have certain insurance plans or employer tax plans, you will also need to get an EIN. There are more specific situations that probably don't apply to a lot of people, when you would need an EIN.

Travis: OK. What percentage of corporations that you guys file, would you say file the EIN along with it?

Jake: Sorry, Travis, could you repeat that question?

Travis: Yeah, no problem. What percentage of corporations that you file, would you say, have an EIN filed alongside of it?

Jake: I would say almost 100%.

Travis: 100%. Because it's a really important document.

Jake: It is. It's very important. It's important to get it right; it's important to make sure that it gets filed appropriately with the IRS. If they have any questions on it, we're able to answer it very quickly. It's a very simple process with us. We are integrated within the IRS to be able to get it very quickly. So almost every single corporation that we file, actually, we obtain a Tax ID number for them as well.

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