7: Obtain a Federal Tax ID Number (EIN)

You can apply for a federal tax ID for free using the IRS assistance tool Links to an external site..

This is a nine-digit number assigned to your company which you will use for things such as filing company tax returns, opening a business bank account, applying for licenses and permits, and applying for business credit.

If you are a sole proprietor, you do not need to obtain an EIN, you can use your personal Social Security number.