I am trying to separate my personal and business finances, so my first step was to get an Employer Identification Number (EIN), sometimes called a Tax ID. An EIN is used by the IRS to track businesses and takes the place of a Social Security Number in many areas. They are free, you can either apply online or over the phone. I chose the latter because that way you get it instantly.
I technically don’t need one, since I am not incorporated and currently don’t have any employees, but it allows me to separate my business finances by using it to open business bank accounts, business credit cards, and so forth. Also, now whenever I get paid via 1099s it will be through my new EIN.
By Jonathan Ping | Entrepreneurial | 1/17/06, 10:06pm