For minor business owners, there are early ways to identify yourself and your commercial enterprise when applying for credit cards—most normally, businesses have an Employer Identification Number, or EIN. You can apply for some business credit cards using an EIN, although in most cases—but not all—you have to provide a personal SSN ampere well. There are good reasons to utilize an EIN for business credit cards, so you should understand how you should identify yourself before you submit any applications .
What Is an EIN ?
The IRS identifies taxpayers using several methods, which vary based on the type of taxpayer : SSN is used for individuals, EIN for employers, and Individual Taxpayer Identification Number ( ITIN ) for certain categories of nonresidents .
therefore, an EIN is a number that identifies your business with the IRS and other entities.
“ An EIN is a 9-digit number ( for exercise, 12-3456789 ) assigned to employers, sole proprietors, corporations, partnerships, estates, trusts, certain individuals, and other entities for tax charge and report purposes, ” the IRS ’ s official definition states .
In many cases, like if you have employees, an EIN is required for your small business. In other cases—if you run a sole proprietorship, for example—an EIN is not necessary to pay taxes. however, there may be reasons you might distillery want an EIN offprint from your personal SSN, one being that you might want to use your EIN to apply for business accredit cards .
When Does Your Business Need an EIN ?
There are many cases in which the IRS requires a commercial enterprise to have an EIN. The agency has a checklist to see if your mathematical process needs an EIN to do business in the US. Unless you are freelance and have no employees other than yourself, an EIN is probably required .
If you answer yes to any of the surveil questions, the IRS requires your business to have an EIN :
- Does the occupation have employees ?
- Is the occupation a pot or partnership in terms of business structure ?
- Does the occupation file tax returns for Employment, Excise, or Alcohol, Tobacco, and Firearms ?
- Does the business withhold taxes on non-wage income paid to a nonresident stranger ?
- Does the commercial enterprise have Keogh plans ( a type of retirement plan ) ?
- Is the business related to organizations including trusts, IRAs, Exempt Organization Business Income Tax Returns, estates, real estate mortgage investment conduits, nonprofit organizations, farmers ’ cooperatives, or plan administrators ?
You might want to apply for an EIN tied if you don ’ t technically need one—if you know you ’ ll need to hire employees but seaport ’ metric ton done so so far, for exercise .
Why Would You Want an EIN ?
even if the IRS doesn ’ thymine require your business to have an EIN, you may want to apply for one anyhow. You might have plans to grow into an process that requires an EIN. In terms of business support, many lenders require an EIN on their applications .
“ As a occupation owner, you ’ ll need an EIN to open a business savings bank history, apply for business licenses and file your tax returns, ” writes business technical Ijeoma Nwatu for the Small Business Administration. “ It ’ s helpful to apply for one arsenic soon as you start planning your business. This will ensure there are no delays in getting the appropriate licenses or financing that you may need to operate. ”
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One reason you might want an EIN : you can use it to apply for clientele credit cards .
How Do You Get an EIN ?
The IRS lotion for EINs is always unblock, and the process is aboveboard. importantly, beware of any companies or websites that require requital for an EIN—these are scams. The IRS allows businesses to apply on-line using its EIN assistant. You can besides apply for an EIN through facsimile or mail. To do then, you have to fill out IRS Form SS-4. Either manner, the information you need to provide ( like your mention and business industry ) is the like .
How to Receive Your EIN Number
After you apply for an EIN on-line or with Form SS-4, the IRS will send you a notice of approval. The detect will include your EIN .
If you lost your EIN or need a copy of your Form SS-4, contact the IRS Business and Specialty Tax Line .
How Do I Get EIN for Business Credit ?
If you want an EIN specifically to apply for business lines of credit rating or a business credit batting order, the serve is the same—use the IRS ’ s on-line system or fill out Form SS-4 .
Can I Use My EIN rather of My SSN When Applying for Credit ?
once you have an EIN, you can apply for credit with it alternatively of your personal SSN. however, most credit batting order companies and banks will still require an SSN because they require personal guarantees .
business Credit Cards With No SSN
The personal guarantee requirement means that it ’ s pretty rare to be able to apply for a credit menu without inputting an SSN at all—even if you have an EIN. Generally, business credit rating cards that don ’ metric ton require an SSN are considered “ corporate cards. ” normally to bypass submitting an SSN, credit card companies will require you to have a high income and a high-revenue clientele. Many besides are invite-only .
If you think your commercial enterprise qualifies, there are options available from Stripe, Brex, and Bremer Bank .
How Do I Get an LLC Business Credit Card ?
If your company is structured as a limited liability caller ( LLC ), you can apply for an EIN. If your LLC has no employees, you do not need an EIN. If you ’ d like to apply for a business accredit card using your LLC ’ second EIN, though, then you should apply for an EIN with the IRS .
business Credit Cards Applications That Accept EIN
Most business credit cards accept applications that use an EIN, but you frequently have to provide your SSN to fulfill the ship’s company ’ s personal guarantee requirements. hera are several business credit rating cards that you can apply for with an EIN, but they are far from the only options available :
capital One Spark Cash for Business Card
The Capital One Spark Cash for Business Card is a square option with 2 % cash back on everything you spend. There is no fee for the first class of use and an annual tip after that. Capital One offers substantial cash bonuses depending on how much you use the card when you first open it .
Chase Ink Business Cash Credit Card
Featuring no annual tip, the Chase Ink Business Cash Credit Card is a popular choice because of cash bonuses and cashback rewards, depending on what you spend money on .
American Express Business Platinum Card
While the American Express Business Platinum Card costs a goodly $ 595 annual tip, it provides expansive rewards on flight and hotel purchases angstrom well as eligible purchases over $ 5,000.
SSN Is Usually still Required
In most cases, you ’ ll have to provide an SSN on a business credit card application—even if you provide an EIN. Because credit cards are unguaranteed, credit card companies want to ensure that person is apt for the card ’ s debt, even if a business is dissolved. This personal guarantee is a level of security for the credit calling card issuer .
by and large, credit card companies will conduct a “ hard pull ” for your personal accredit report even if you apply for a commercial enterprise credit tease with an EIN. flush if your business has its own accredit history, credit batting order companies will most probable want your personal accredit composition. hard inquiries can negatively impact your credit score, therefore continue with caution .
What Is the Easiest Business Credit Card to Get Approved For ?
The Capital One Spark Classic for Business Card is known for being attainable for business owners with less than leading credit, and it has no annual fee. generally, when credit cards are easier to get approved for, the terms, pastime, and fees are more expensive. therefore, it is best practice not to carry a month-to-month balance on the card .