As you’re working through your tax paperwork for 2018, you might come across a blank spot on paperwork to write your EIN number. Today, we are going to take a brief look at EIN numbers and your craft business.
What is an EIN Number?
EIN stands for Employer Identification Number. An EIN number, also called a FEIN (Federal Employer Identification Number) or Federal Tax Identification Number, is a unique way to identify your business. It’s 9 digits long and is public record – meaning anyone that knows your business name can look up your EIN number online.
Do You Need an EIN Number?
Generally, if you are incorporated as a sole proprietorship or a single member LLC with no employees, you do not have to obtain an EIN number. Instead, you can use your social security number on official paperwork.
There are a few circumstances where a sole proprietorship or single member LLC might need an EIN number. These aren’t likely in craft businesses, but for others that may happen upon this article, click here for the IRS EIN Number Quiz.
With identity theft so common is our modern times, I prefer to use my EIN number on paperwork related to my business instead of my social security number. I mean, once I turn over my social security number, I can’t control whether or not the paperwork gets left on a desk for someone else to spy. Since an EIN number is free, I’d recommend you also get one.
How to Get an EIN Number
Now that you know it’s free, let me also tell you that it is fast and easy to obtain. First, go to this link at the IRS website and then complete the form. After the IRS successfully validates your information, your EIN number is immediately available.
If you’d prefer to fax or mail your EIN application, click here for instructions.
That’s it! Dealing with the government usually isn’t fast and painless, but this time it is!
If this article was helpful, save the image below to Pinterest!