An Employer Identification Number (EIN) holds numerous benefits and serves various purposes for both business and personal uses. Here are some of the key advantages:
Benefits for Business:
- Legal Identification: An EIN provides a unique identifier for your business, similar to a social security number for individuals. It distinguishes your business entity and helps establish credibility and professionalism.
- Tax Purposes: One of the primary reasons for obtaining an EIN is to meet tax obligations. It enables your business to file tax returns, pay taxes, and comply with federal, state, and local tax requirements.
- Hiring Employees: If your business plans to hire employees, an EIN is necessary. It allows you to withhold and report taxes on behalf of your employees, ensuring compliance with employment tax regulations.
- Business Banking: An EIN is typically required to open a business bank account. Separating personal and business finances is essential for accurate bookkeeping, taxation, and financial management.
- Establishing Business Credit: An EIN enables your business to build its own credit history separate from personal credit. This can be crucial for obtaining loans, lines of credit, and favorable financing terms.
- Legal Protection: Using an EIN for business transactions helps protect personal assets by maintaining a clear distinction between personal and business liabilities. It shields your personal finances from potential legal actions against the business.
Benefits for Personal Uses:
- Estate Planning: An EIN can be utilized for estate planning purposes, such as creating trusts or managing assets. It helps ensure the smooth transfer of assets and facilitates tax planning strategies.
- Sole Proprietorship: If you operate a business as a sole proprietor, you may choose to use your EIN instead of your Social Security Number (SSN) for business-related activities. This helps protect your SSN from unnecessary exposure.
- Privacy and Security: Using an EIN for certain personal transactions, such as obtaining a business license or registering a vehicle, can help protect your personal information from public records.
- Investment and Financial Activities: Having an EIN can be beneficial when engaging in investment activities, opening investment accounts, or participating in certain financial transactions that require a tax identification number.
- Freelancing and Consulting: Freelancers or independent contractors may choose to obtain an EIN to separate their business income from personal finances and facilitate easier tracking and reporting of self-employment income.
WHAT IS THE PURPOSE OF THE INDIVIDUAL BANKERS EIN, ESTATE EIN & THE FOREIGN GRANTOR 98 EINs
The estate EIN assigned to your STRAWMAN name and is considered a public side EIN. This number is used for banking purposes (to open up a bank account without the use of your EIN) and can be used on applications where an EIN or ITIN is being asked for.
To get the estate EIN, your social security number is required along with using your domestic home address. So if you are not a U.S. citizen, you could not obtain this EIN.
INDIVIDUAL BANKERS EIN
This is another public side EIN that requires the use of your social security number to obtain one. This is what Patrick Devine considered to be a very important EIN that makes you a private banker.
FOREIGN GRANTOR 98 EIN
This is a private side EIN number that allows you to remain on the private side without the use of your social security number. Foreigners can benefit from having this EIN since no SSN or other identifier of such is needed. This EIN is considered being linked to your eminent domain, as the legendary Patrick Devine taught.
This EIN is the only EIN that starts with 98, while the others start with ’93’.
Above all, you can use the above three EINs to open up a bank account without your SSN. Use the case law below to use to open bank accounts when asked for your SSN.