Transcription
Though you want to get an EIN, well, you've made it to the right video. I'm going to teach you how to get an EIN directly with the IRS for free, and we're going to start from the very beginning so I can help you avoid all of the scams out there trying to take your money.
Let's start by opening up a fresh Google search box. In the search box, we are going to type "IRS EIN." You can also click the link in the description below. You'll be presented with a bunch of search results. I need you to ignore everything that says "sponsored." There'll be a bunch of sponsored links up at the top. I want you to find the one that starts with irs.gov. We need to go to the correct website so we don't have to pay money. This is a free process, after all. So let's click on this link and get to this website. Double-check the URL and make sure that it starts with irs.gov. That is very important. I don't want you to have to pay money for this process.
You probably need an EIN to open up a business bank account, either for yourself or for the LLC that you just formed. Both of those situations will be taken care of through this application. A few things to note before we get started: This website only functions between the hours of 7 AM and 10 PM Eastern Time, Monday through Friday. So if you try to get an EIN after hours or on the weekends, you're going to get an error. So please wait for the weekdays to get this done. Crazy, that's a website, I know. Blows me away every time I see that.
Second thing: EIN stands for Employer Identification Number. It's like a Social Security Number for our business. We get EINs so that we can open up business bank accounts and build business credit. Luckily, the process is free and it's very easy.
Third thing: If you've already applied for an LLC with a company like Incfile or LegalZoom and you've asked them to get an EIN, then you don't need to do this step. They'll already have taken care of it for you. But if you haven't, you are responsible to get your own EIN, and that's what I'm going to help you with today. So let's scroll down and hit "Apply Online Now."
This is the EIN assistant, the beginning of the application. If your screen doesn't look like mine, make sure you're on the right website. Let's hit "Begin Application." The first thing we need to decide is what type of legal structure is going to be applying for this EIN. Most people are going to choose LLC because most people have formed a limited liability company and they're now trying to get an EIN for that LLC. The other option that some sole proprietor, a sole proprietor, simply put, is a regular person that's going into business for themselves, someone who's doing business that does not have a limited liability company. If you need an LLC, take a break and watch this video. I'll walk you through it, then you can come back to this one. We're going to choose LLC and we're going to ignore Partnerships, Corporations, Estates, and Trusts for now because 90% of people are going to need this EIN for their LLC. So let's select that option and hit continue.
On this screen, they're just giving us a little bit of information about LLCs. Feel free to read through this or watch one of my other videos to learn more about them. Otherwise, we're going to hit continue.
We need to tell them how many members are in the LLC. In this case, it's going to be just one. I'm getting an EIN for myself that opened up an LLC with a single member. So we're going to put the number one. If there's more than one person that's involved in this LLC, you can go ahead and put in that number now.
We now need to choose the state in which the business is located, and in our case, we're going to choose California. Let's hit next.
On this screen, what they're telling you is that if you form a single-member LLC, it is technically disregarded. All of the business activity, money-wise, will go on your personal tax return. But if there's more than one person in the LLC, it gets taxed like a partnership, and so there will be K-1s you will be responsible for in order to execute your taxes. Not important now, just wanted to let you know come tax time. Let's hit continue.
Now we need to choose the reason we're getting the EIN. Most people are going to choose "for banking purposes." Some people will choose the option "started a new business." Pick whatever one is more applicable to you. I want to open up a business bank account, so I'm going to choose "for banking purposes." Let's hit continue.
We now need to fill out the information for the responsible party of the LLC. So go ahead and put your information in here now, including your Social or your ITIN, and then we'll hit next.
We now need to fill in the address of the LLC, and this is where it's physically located. So if you have a business address, enter it in here. If you're using your home address as your business address, you can put that in here as well. If you want to put in a different mailing address other than your company address, make sure you check "yes" so that you can fill it out on the next screen. Otherwise, let's hit continue.
Now we're at section four, the details. You need to type in the name of your LLC exactly as it appears on your article of organization. So when you filled out your LLC paperwork and you chose a name for it, make sure that name is exactly matching on your EIN application. You can include the LLC at the end of the name. If you have a trade name or a DBA for the LLC, you can fill that in here, but if you don't, just leave it blank.
Next, we're going to make sure the county where the LLC is located is correct, and then make sure the state matches for both the location and the articles of organization. If you formed this LLC in California, just make sure it all says California. If it's all formed in New York, make sure it all says New York. Last thing we're going to do is choose the month and the year that the LLC was formed, which is most likely going to be this year.
Now we need to give more information about our LLC. Please answer these questions very carefully. I'm assuming the answer is going to be no for most of them, but if yes, make sure that you elaborate. Does your business own a vehicle more than 55,000 pounds? Nope. Most vehicles are usually around 4,000 pounds, so you're probably good unless you have big trucks. Does it involve gambling or wagering? Do you need to file Form 720 for excise tax returns? Do I sell or manufacture alcohol, tobacco, firearms? So I expect to have any W-2 employees in the next 12 months? I'm gonna hit continue.
Let's go to the next screen. Now we need to choose a category that best fits our business. I'm going to choose "other." We do education and consulting, so I'm gonna hit continue and elaborate on the next screen. We'll make sure we check "other," and we're going to do education and consulting. Perfect. Let's hit continue and move on.
This screen is very important. You get to choose how you want to receive your EIN. You can either choose the digital option or the paper option. I personally prefer the digital option because it will show you your EIN right away and you can save it on your computer and be done. If you want the paper option mailed to you, it will be sent to the mailing address you filled out earlier in the application. Please choose the digital option if you have the ability to open a PDF. If not, you can get it mailed to you. Just know that it's going to take a lot longer and it's a lot riskier. If you misplace it for some reason or the mail doesn't show up, it is a pain in the butt to call the IRS and figure out what your EIN is. So I'm going to choose to receive the letter online and hit continue.
Wonderful. We're at the last screen, a summary of your information. Please make sure that it is correct. This is very important. There's no do-overs. Make sure the legal name matches your LLC paperwork exactly, exactly. This is very important. Let's double-check the rest of our information, including the address, the responsible party, the business activity, and also the additional LLC information. Very good.
Once you hit submit, your EIN will literally pop up on the screen in a PDF form. Please hit save and put it in a Google Drive folder, put it on your computer, and also print it out and put it in a desk drawer. This is a very important piece of paper. We're going to need it to prove that we own the business. We're going to need it to open a business bank account, and we're going to need it for tax time. This is like your Social Security Number for your business. You can use it to help report and earn business credit, as well as so many other things, so you don't want to lose it.
Your form should look exactly like this one. It's technically called the SS4 form, which displays your Employer Identification Number for the business that you've put together. So in the future, if somebody asks for Form SS4, you know exactly what to give them.
If you like this kind of stuff and you like the way that I teach, consider checking out my accelerator. It's a training program I put together for people just like me who struggled when starting their business. We go through all of my video trainings, I go live every week, we can talk, we can DM you, discuss things. I have a Rolodex of all of my people. I have resources and referrals for you. It's a wonderful place to hang out. Otherwise, I highly suggest you check out this video next because it will teach you how to open up a business bank account, and that is a very important next step, especially if you're beginning your business.