1. Introduction to EINs
What is an EIN? An Employer Identification Number (EIN) is a unique 9-digit number assigned by the IRS to identify a business entity. It functions similarly to a Social Security Number (SSN) but is specifically used for business-related activities, such as filing taxes, opening business bank accounts, and hiring employees.
Why is an EIN Important for Immigrant Entrepreneurs? An EIN is crucial for:
- Starting a Business: Legally operate a business in the U.S.
- Hiring Employees: Required for managing payroll.
- Opening a Business Bank Account: Necessary for separating personal and business finances.
- Filing Taxes: Essential for federal and state tax compliance.
- Protecting Personal Identity: Safeguard personal information by using an EIN instead of an SSN.
Key Points for Immigrant Entrepreneurs:
- Inclusivity: Both documented and undocumented immigrants can apply for an EIN.
- Using an ITIN: If you don’t have an SSN, you can use an Individual Taxpayer Identification Number (ITIN) to apply for an EIN.
