pstrongIf you’re starting a new business, you may need an EIN (Employer Identification Number) from the IRS. Here’s how to determine whether or not you need one as well as how to get it./strong/ppIf you’re a sole proprietor or in some states, a single owner of an LLC, the good news is that getting an EIN is free! This is a relief if you’ve already had to pay for the LLC, business insurance, and city business licenses. More details on costs coming up./ph3What is an EIN?/h3pEssentially, an EIN is like a Social Security Number for a business—at least in regards to paying taxes. You’ve more than likely had to enter an EIN on your 1040 from your W-2./ph3Do you need an EIN?/h3pYou need an EIN if you meet any of the following criteria laid out by the IRS:/pulliYou have or are planning to have employees in the next year/liliYou are a corporation or are set up as a partnership/liliYou withhold income tax on anyone you pay that’s not a resident alien/liliYou have a Keogh Plan (a pension/retirement plan for a self-employed individual)/liliYou are involved with:ulliTrusts, except certain grantor-owned revocable trusts/liliIRAs/liliExempt Organization Business Income Tax Returns/liliEstates/liliReal estate mortgage investment conduits/liliNon-profit organizations/liliFarmers' cooperatives/liliPlan administrators/li/ul/li/ulh3EIN Costs/h3ulliSole Proprietors are free./liliA non profit may have a fee up to $150 depending on the state and that fee is paid to the/liliSecretary of State./liliAn LLC or Corporation may have a fee of $100 depending on the state./liliA business partnership also may have a fee of $100 that’s determined at the state level./liulul/ul/ul/ulh3Is that all?/h3pIf you don’t meet any of the above criteria, you’ll probably still want to get an EIN for a few other reasons./pulliYou want to get a bank account for your business. Sometimes banks will want to see your EIN and sometimes not./liliBusiness credit cards also will sometimes ask for your EIN./liliYou may also need an EIN to get business permits and licenses./liliIf you ever hire an independent contractor, you’ll need to to have an EIN in order to furnish them a 1099 in January./li/ulpspanYou can /spana href=//www.irs.gov/Businesses/Small-Businesses--Self-Employed/Apply-for-an-Empl... your EIN online/aspan /spanspanin less than 10 minutes more than likely. So, you’re better off just going ahead and getting one. Let us know if you have any questions or need any help at all making sure you’re tax structure is right for you and your business./span/p