How to Get EIN for your BusinessOn February 22, 2020 by Raul Dinwiddie
Why establishing business fundability matters and how to achieve it easily. Fundability matters. It’s so easy to get lenders to decline loan applications and creditors to not give you credit. Building a fundable business will help you get approved. The business will stand on its own. It can’t look like a hobby you do in your spare time, even if it started off as a side gig. Let’s look at your EIN Corporate Entities and SIC/NAICS codes. Even if you have no employees, your business needs a federal tax I.D. number or EIN, like you have a Social Security Number, your business has an employment identification number or EIN your tax I.D. number is used to open a bank account and to build a business credit profile. Take the time to verify all agencies, banks and trade credit vendors. Have your business listed with the same tax I.D. number. Go to the IRS website and EIN is free. Make sure your address with the IRS is the same as listed everywhere else. When getting your EIN choose your business entity, you generally want a corporation or LLC, a sole proprietor should at least get a DBA. Without a DBA, your personal name is the same as the company name. You could end up being personally liable for all business debts. The IRS says with this structure you have a 1 in 7 chance of an IRS audit. There is only a 1 in 50 chance for incorporated businesses avoid confusion and significantly lower the chance of an IRS audit at the same time. To get financing or credit for your business, you must have a business entity to truly separate business credit from personal credit, your business must be a separate legal entity, not a sole proprietor or partnership, a corporation or LLC business entity gives you more credibility in many cases, these entities by default eliminate your personal liability, other entities don’t. Make sure your entity is set up in the same state as your business address. Verify all listings, show the same name, address, phone numbers, etc. as in state and other records. The IRS website is also where you choose SIC/NAICS codes. These codes spell out if you’re in a high risk or restricted industry. If more than one code applies and it’s not high risk or restricted, then use that one. There is nothing underhanded or unethical about doing this. Let’s recap. Keep all records consistent to ensure Fundability set up your business legitimately with a domain, phone numbers and address and more, get all I.D. numbers and register with the IRS. Choose a business entity. Corporations are best. Make sure you’ve got all the necessary licenses. Set up your business bank account for fundability and get your personal credit house in order. Contact us today to learn more about why establishing business fundability matters and how to achieve it easily.