Why Every Coach Needs an EIN No Matter How Much You Make
I remember the first time I heard someone mention an EIN back when I was a Virtual Assistant and had no bookkeeping knowledge. I was like, “What is that?” I looked it up and thought I had a better understanding of it.
But then later on, a form requested my Federal Tax ID number. And now I was wondering, “Is this talking about my EIN number or was I supposed to get some other ID number I didn’t know about?”
To make it even more confusing, I’ve heard it referred to as an FEIN, Federal ID, Federal Employer Number, and Tax ID, but they all mean the same thing! You’re welcome by the way, now you don’t have to encounter the deer in headlights feeling I did.
What is an EIN number?
An EIN number is a 9-digit number given to you by the IRS. You must apply for an EIN to receive one. This number is unique to your business and helps the IRS identify your business quickly. EINs are used on tax returns, to open a bank account, W-9s (for 1099s), and other professional forms and applications.
FEIN or EIN stands for Federal Employer Identification Number.
Why Do I Need an EIN number?
You can get away without having an EIN number when you first start out, but we always recommend business owners go ahead and get an EIN number even if their business is new!
Why? Because without an EIN number you will have to use your social security number.
1. Protect Your Social Security Number With an EIN
Now I don’t know if you’ve ever been a victim to identity theft or know someone who has, but if not, now you have 👋
Yep, I had my identity stolen and let me just tell you it sucks big time! Spending hours and hours contacting collections agencies and having to prove you didn’t incur those charges their showing attached to your name is exhausting. I always made every effort to protect my identity, but with so many institutions requiring your social security number to verify your identity, that means so many people have access to your number.
But, but, before you say, “What’s the use in trying to protect it?” I’m pleading with you to continue to protect your social as much as you possibly can!
And one very easy way to do that is by using an EIN instead of your social security number.
2. Treat Your Business Like a Business
Mindset is everything! If you don’t treat your business like a business, it won’t blossom like a business should.
Don’t treat your business like a hobby.
The more you believe what you are building is a true business, the more you will elevate your mindset and the more you will give it the attention and effort it deserves.
3. Show Others You’re Running a Real Business
Ok, I don’t want to be the shallow person here, but do you think other people will perceive your business as a more legitimate business if you are using an EIN number or your social security number?
What about the bank you’re trying to get a credit card or loan from?
What about your client who’s just asked for a W-9 so they can send you a 1099-NEC at the start of the year? (Again…do you really want to give your social security number out to all your clients? 🥴)
When Should I Get an EIN?
Immediately. No, seriously. It takes 5 minutes, let me show you how!
How to Get an EIN in Less Than 5 Minutes for Free
If you want to search yourself, you can Google “apply for ein” and look for one of the first results with a .gov ending BEYOND THE ADS! Don’t click on the ads!! People trying to make a buck and I’m not hating on the hustle, but guys you can do this for
So don’t pay for it, k?
You can also just click this button below if you want to go directly to the right page. You’ll notice it’s a .gov site; that’s how you know you’re in the right place.
Read through the steps and click the button to “Apply Online Now.”
👇 Important Step!! 👇
Follow the directions and be sure to request a digital letter if given the option! Download the letter and save it to a Google folder labeled “Important Documents” or “Business Documents”, something that will help you find it later.
Trust me, you won’t receive the letter in the mail for several weeks and having the number easily accessible is so nice when you need to find it!
Don’t want to figure out your bookkeeping alone?
Join the waitlist for DIY Bookkeeping Together, a low-cost monthly membership where you can join our monthly co-working calls to get your questions answered and work alongside other business owners like you. Plus we’re building accountability in and making it fun so you will actually want to do your bookkeeping!
Be the first to know when the doors open!
