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How to Obtain a Tax ID for a Business

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From Quick Guide: DIY LLCs

Summary: A small business needs an employer identification number, or EIN, because it is more secure than using a social security number. Find out why a business without employees should still register for an EIN with help from a general business counselor in this free video on getting a tax ID for a business.

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By Ann Howard
eHow Presenter

Ann Howard is a general business counselor at SBTDC, UNC Wilmington. Before coming to the SBTDC, Howard managed marketing and public relations for a small local business. Her areas of...read more

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Video Transcript

"What you want to get is an employer identification number an EIN and you want to use this number instead of your social security number because it is more secure, there is less risk associated with all the identity theft and everything going on and you want to do that even if you don't have any employees. It is misleading because it is an employer identification number but really it is just a different number than your social. So you've got corporations and an LLC which is limited liability company which exists separately from you and then you have to file that with the secretary of state usually in your state to file that legal structure. So you, that's when people say incorporating, that's what they mean is registering the business with the secretary of state. In North Carolina it costs about I think $225 to get it done and that's the LLC and then corporations are more but, and usually then if you've got some complications, you may want to, this is when you may want to get an attorney to help you. We recommend people register for the EIN even if they don't have any employees just because it's more secure than using your social security number."

eHow Article: How to Obtain a Tax ID for a Business

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