So this won’t be the most exciting episode of the Shontavia Show, but it definitely one of the most important for your business! The Internal Revenue Service (yes, the IRS) does not play about it’s money, and I want to make sure we both stay out of trouble with them!
The IRS uses a code called an employer identification number (“EIN”) to identify businesses/employers who are required to file various business tax returns. This is kind of like a social security number for a business.
Some businesses are required by law have them, while others don’t have to have them but can opt in to receive one.
Don’t play with Uncle Sam
This episode is about how to decide whether you need a tax ID number and where to go file your application to get one.
The basics are that sole proprietors and single-member LLCs without employees don’t generally have have a tax ID number, though there are some exceptions to this rule that I cover in the episode.
In addition, even if you don’t have to have a tax ID number, I talk about multiple reasons why you might want to consider getting one, even if you’re a sole proprietor or an LLC of one (you) without employees.
Here are some highlights from the episode:
01:24 Why you probably need a tax ID number – thoughts from my conversation with a business law expert
05:14 How to determine when the law requires you to get a tax ID number
06:22 The benefits of having a tax ID number, even if the law doesn’t require it
10:32 How to get a tax ID number (it’s free and you can probably do it yourself!)
 For more, check out the full episode below.
Show Notes
Choosing a Business Structure: https://shontavia.com/choosing-a-corporate-structure-advice-from-a-business-law-expert/
How to get a tax ID number for your business: https://shontavia.com/tax-id-numbers-biz-better-have-my-money/
How and Why to Avoid Commingling Personal and Business Funds: https://blogs.findlaw.com/free_enterprise/2017/03/how-and-why-to-avoid-commingling-personal-and-business-funds.html
Do You Need an EIN?: https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-an-ein
Apply for your Tax ID number/EIN online: https://sa.www4.irs.gov/modiein/individual/index.jsp
Paper Application for Employer Identification Number (Form SS-4): https://www.irs.gov/pub/irs-pdf/fss4.pdf
Questions and Action: Decide whether you need a tax ID number
 After you’ve had a chance to watch the video, I’d love to hear from you in the comments section!
Please answer the questions relevant to your current situation:
1. What kind of business structure do you have? Are you required to have a tax ID number?
2. Even if you aren’t required to have a tax ID number, are you comfortable with sharing your personal social security number with business partners, collaborators or strangers?
3. Do you plan to open a business bank account? Does your bank require you to have a tax ID number?
Please give as much information as you can in response to these questions. I’d be happy to share more tools and resources that help you get what you want.Â
Thank you so much for joining me on this roller coaster of an experience.
I am eternally grateful that I get to do this work with creators, entrepreneurs and innovators like yourself.
                                                                 Let’s continue to make it happen,
