Business Federal Tax ID
A business Federal Tax ID number (also called an EIN number) is mandatory, because without one, your corporation will be useless. Your Tax ID number will be the number that identifies your business and information. It’s just like how your Social Security number will identify who you are for your personal credit.
Once you have incorporated your business now you’re ready to apply for an EIN. If you chose to use my personal entity specialist then this would all be taken care of for you.
If you already have a corporation or LLC but do not have a Federal Tax ID number than you will need to apply for one.
For more information be sure to check out the FAQ section on Employer ID Numbers.
If you have had a corporation for some time but never have obtained a tax ID number don’t worry. Tax ID numbers are not generated in a numerical fashion and there is no way for a lender to determine when your tax ID was obtained and compare it to the start of your business.
This is also important to know for shelf corporations if you are planning on using one. After you have obtained your tax ID number for business you’ll also be ready to open a small business bank account.
If you’re serious about building business credit without a personal guarantee then you will have to complete these two steps before you can move forward:
- Incorporate your business
- Obtain a Federal Tax ID#
What type of business structure do you have?
Ready to start building business credit for your corporation? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system? A system that provides you access to premium vendors, business credit cards, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>
About the Author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit builder system providing business credit information for business owners. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.
October 7th, 2009 at 7:34 pm
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October 13th, 2009 at 3:04 pm
Thank you very much for the positive feedback. I love what I do and enjoy providing as much value as I can to my readers. All the best to you and feel free to subscribe to my feed.
October 27th, 2009 at 12:19 pm
Can you use an EIN if you are not a corporation. I hate giving my SSN out for affiliate networks.
October 27th, 2009 at 3:54 pm
Hi Kris,
You can obtain an EIN as a sole proprietor but keep in mind that as a sole proprietor you can have only one EIN, regardless of the number or types of businesses you operate.
Best of success!
October 28th, 2009 at 8:25 am
I really like your blog and i respect your work. I’ll be a frequent visitor.
October 28th, 2009 at 9:51 pm
Thank you for the feedback and glad to have you as a reader.
November 22nd, 2009 at 8:46 pm
I’ve been interested in taxes for lengthier then I care to admit, both on the individualized side (all my employed life!!) and from a legal point of view since satisfying the bar and following up on tax law. I’ve put up a lot of advice and corrected a lot of wrongs, and I must say that what you’ve posted makes complete sense. Please carry on the good work – the more individuals know the better they’ll be armed to comprehend with the tax man, and that’s what it’s all about.
November 23rd, 2009 at 11:15 am
Right on Tax Guy! Thank you for the input!
January 29th, 2010 at 6:00 am
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April 21st, 2010 at 3:07 pm
We just couldnt leave your website before telling you that we really enjoyed the useful information you offer to your visitors… Will be back soon to check up on new stuff you post!
April 21st, 2010 at 10:36 pm
Thank you for the feedback. Glad to hear that you are finding the information helpful.
July 20th, 2010 at 7:25 am
Love The Blog! I own a small DJ business and am wanting to establish a good business credit rating since my personal is kind of messed up. I have had a business bank account about 3 years now, but no tax id #. I see you say step 1 incorporate your business. Is this a requirement or suggestion? If my business is a small dba should I still incorporate?
Thanks
July 20th, 2010 at 9:48 am
Hi Terrence,
Thanks for the feedback and congrats on owning your own DJ business. You should definitely consider incorporating your business because as a sole proprietorship all of your personal credit and personal assets are at risk.
Once you select the right business entity then it’s time to start building business credit.
Go for it!
Marco
August 20th, 2010 at 10:13 am
Excellent read. I identified your site from a google search, and was glad I did. The information has helped me immensely.
August 25th, 2010 at 9:48 am
Hi Marco! I wanted to thank you for the wonderful facts you’ve posted on your site. I will definitely come back to check it out again. Have a great day!