What Is an EIN?
An EIN is your business’s tax ID number from the IRS. Nine digits, looks like XX-XXXXXXX. Think of it as the business version of your Social Security number. In Florida or any other state, it’s the same—the IRS uses it to track all money-related activity for your company.
Who Needs an EIN?
Almost everyone except very simple sole proprietors who work alone, take cash only, and never hire help or open a business bank account.
- LLCs, corporations, partnerships – mandatory.
- Single-member LLCs – optional if no employees, but most get one to keep personal SSN off forms.
- Nonprofits – required for bank accounts or 501(c)(3) applications.
- Trusts and estates that earn income.
- Any business planning to hire even one employee – required for payroll taxes.
In Florida, rules are the same as federal.
Benefits of Having an EIN
- Compliance with IRS – avoid fines.
- Keeps personal SSN private.
- Required by banks for business accounts.
- Builds business credit separate from personal credit.
- Enables payroll processing.
- Shows clients and vendors your business is legitimate.
- Simplifies tax filing under the business entity.
Required Information for Application
Grab Form SS-4 (online). You’ll need:
For the business:
- Exact legal name (match Sunbiz filing if applicable)
- Any DBA/trade name
- Street address
- County and state (Florida)
- Reason for applying (starting business, banking, hiring, etc.)
For the responsible party:
- Full legal name
- SSN or ITIN
- Home address and phone
The responsible party must be a real person, not the company itself.
Step-by-Step Guide to Completing the Application
Fastest and free method: online via IRS website.
- Go to irs.gov, search “apply for EIN online”.
- Select your business type.
- Answer questions step by step.
- Enter business name, address, and responsible party info.
- Submit during IRS online hours (Mon-Fri US time).
- Receive EIN instantly and download confirmation letter.
If online isn’t possible:
- Fax SS-4 (~4 days)
- Mail SS-4 (~1 month)
- Call if outside the US
Do not pay third-party sites—they often charge for free IRS services.
Common Mistakes to Avoid
- Wrong SSN or misspelled names
- Listing business as responsible party
- Using a PO box instead of physical address
- Reapplying unnecessarily
- Using paid services that only duplicate the free IRS process
Why You Need an EIN for Banking
Banks in Florida—Chase, Wells Fargo, Truist, credit unions, online banks—all require EIN for business accounts. It separates personal and business funds, protects LLC liability, and simplifies expense tracking.
EIN for Tax Purposes
The IRS uses EIN to track all business tax filings—income, employment, excise taxes. Missing it can result in penalties.
EIN for Hiring Employees
Required to:
- Withhold federal income tax
- Send Social Security and Medicare taxes
- Pay federal unemployment tax
- File quarterly reports and W-2s
No EIN = cannot legally run payroll.
EIN for Business Credit
Use it to establish business credit with Dun & Bradstreet, Experian Business, etc. Builds a separate credit history from personal credit.
EIN for Business Compliance
Florida uses the federal EIN. Maintaining it keeps you compliant with IRS rules; missing it may incur penalties.
Updating Your EIN Information
For address or responsible party changes, file Form 8822-B online or by mail.
EIN Renewal and Reissuing
EINs never expire. New EIN needed if:
- Sole proprietorship → LLC or corporation
- Ownership completely changes
- Major business type change
Minor changes (name tweak, address update, adding a member) usually keep the same EIN.
What to Do if You Lose Your EIN
Check:
- Old tax returns
- Bank statements
- IRS letters or emails
- 1099s
If still missing, call IRS business line 800-829-4933 with business info and responsible party SSN. They’ll issue a 147C letter with the EIN.
EIN and Business Name Changes
EIN stays the same. Notify IRS using Form 8822-B and update Florida Sunbiz filing if LLC/corporation.
EIN and Business Structure Changes
Major structure changes require new EIN:
- Sole proprietorship → LLC
- LLC → corporation
- Adding partners and forming a partnership
Minor changes like adding a DBA or slight ownership tweak typically keep the same EIN. IRS has a helpful online checklist “Do You Need a New EIN?”.
For anyone starting or running a business in Florida: get your EIN early. It’s free, quick, and avoids hassle with banks, taxes, hiring, and legitimacy. Keep the confirmation letter safe, and consult IRS or a local accountant if uncertain.