The Complete Idiot's Guide® To Accounting

Taking a Number

All businesses that hire staff must have an Employer Identification Number (EIN). If you decided to incorporate, you already have this number. The number the IRS gave you when you applied for corporate status is the same number as the EIN. Otherwise you should contact the federal and state tax agencies to get the forms you need to apply for the EIN before you start hiring.

BIZ TIPS

State tax authorities use the federal EIN as a reference, so you need to set up your federal EIN before applying to the state. You can download the federal form online at www.irs.gov/pub/irs-pdf/fss4.pdf.

The IRS uses the EIN to track your employees, ...