Yes, you can and should apply for an EIN number before creating your company. You must have an EIN so that the Internal Revenue Service (IRS) can identify your business using an assigned number. You must have an EIN to be able to hire employees or apply for a business license. In addition, an EIN is required if you need to complete a credit application for your business or open a business-related account.
You can start running your business before you are even incorporated. To do this, get your EIN and apply for several products, such as insurance coverage or permits, that don't require statutes. It's always a good idea to get your EIN before starting your company. If you obtained an EIN before creating your LLC, you may need to cancel your current EIN or not.
If your EIN is approved before you created your LLC and your LLC's name is rejected, you'll have to re-submit all of the EIN documentation to change everything. Your EIN identifies your business for tax purposes and can act as a social security number for a business. Even if your business doesn't need an EIN to pay taxes, you should consider getting one for your business, as it will help you get more funds for your business. If your company follows the structure of a sole proprietorship and has employees, you must have an EIN.
It's much easier and simpler to wait until your LLC is fully formed before applying for the HEIN. If you need help determining if you can obtain an EIN from an LLC, you can post your legal need on the UpCounsel marketplace. It is also sometimes called FEIN (federal employer identification number) or even FTIN (federal tax identification number). This is due to the fact that requests at the federal level are often validated in state databases.
If your tax structure follows that of a C corporation, you must have an EIN to file taxes. One of the main reasons is that when you apply for your EIN, the IRS request asks you to submit your company's approved legal name and the date it was created. The EIN stands for employer identification number and is a tax identification number used by the IRS.
