Need a business registration certificate ASAP? An EIN (Employer Identification Number) is a free and instant option to get a business registration certificate. Registering for an EIN does not change your business structure. Instead, you must declare your current business structure (e.g. sole proprietor, LLC, S-Corp, etc) when applying for an EIN. This makes it an excellent option for those wishing to remain a sole proprietorship.
An EIN certificate will fulfill NihaoPay’s requirement for a business registration. It may also be necessary for opening a business bank account should you decide to do that.
What is an EIN Business Registration?
According to the SBA (Small Business Administration), “An EIN is a unique nine-digit number that identifies your business for tax purposes. It’s similar to a Social Security number but is meant for business related items only.”
The US government doesn’t typically require an independent online teacher working as a sole proprietor to have an EIN. However, you can check this guide from the IRS if you think you may be obligated to apply for an EIN. It’s worth mentioning that an EIN is necessary for businesses that hire employees.
How to Register for an EIN
Side note: If you’re wanting to use a Trade Name or DBA Name, you may want to register that first since you will be prompted to check if the name is already being used in your location. However, this isn’t necessary for getting just an EIN.
The easiest and fastest way to apply for an EIN is online through the IRS.gov website. The hours of operation for accessing the application are Monday-Friday, 7:00am-10:00pm EST. If you look for the website later and use a search function, make sure to NOT click any advertised links at the top of the search results. These sites are made to look like the IRS website, so be sure to pay attention to the URL! If you are ever prompted to pay for registering an EIN, you are NOT on the correct website!
Completing the EIN application on the IRS website is quick and easy! It should only take a few minutes to complete. First, the form asks a couple of questions about your business structure. If you have never formally registered anything before, your business structure is probably a sole proprietorship. You can read more about sole proprietorships here and on the IRS website.
The rest of the form is basic contact information, including your Social Security number, email, and address. Once you submit the form, the website will generate your EIN immediately. Be sure to download and save that registration certificate!
Keep a Copy of the Certificate!
If you get an EIN business registration, you need to keep a copy of the certificate for future reference. That certificate can be used to fulfill the business registration requirement for NihaoPay. It may also be needed to open a business bank account. It may even become necessary in the future depending on the growth of your business. If you have an EIN, you will need it when filing your taxes.
As mentioned in this article, a sole proprietor must complete a Schedule C form when filing taxes. Sole proprietors who have an EIN, will use that instead of their Social Security number on the Schedule C for the income made with that EIN.
Conclusion
Getting an EIN is fast, easy, and free. There’s a good chance you’ve probably spent more time and effort researching an EIN than it takes to register for one. That means you’ve done the hardest (and smartest) part already!
Disclaimer – Any information contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. In addition, this article is not a substitute for a formal opinion; it is for informational purposes only. For more detailed information, readers may contact their local SBA office.
