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Getting An Employer Identification Number (EIN) For Your Law Firm
(Current as of August 2020)
An Employer Identification Number (EIN) is used to identify a business in much the same way a social security number is used to identify an individual. Not all law firms are required to get an EIN (if you’re operating a sole proprietorship or an LLC with no employees, you may not need one). You can determine whether your firm needs an EIN by answering a few “yes” or “no” questions here on the IRS website.
There are several reasons why it’s a good idea to get an EIN when first starting your law firm, even if it’s not required:
- Most banks will require an EIN to open law firm bank accounts.
- Using an EIN on business forms and applications instead of your social security number can help reduce the risk of identity theft.
- You’ll need an EIN to build a business credit history.
- If you decide to expand and hire employees down the road, you’ll already have an EIN.
You can apply for an EIN online (the process takes roughly ten minutes and it’s free).
OTHER ARTICLES ON THE LAW FIRM LAUNCHPAD:
Choosing A Business Entity Structure
Getting A Business Credit Card
Opening Law Firm Bank Accounts
Buying Legal Malpractice Insurance
Assessing Your Furniture And Office Supply Needs
Setting Up Internet, Phone, and Fax
Assessing Your Computer And Technology Hardware Needs
Assessing Your Software Solutions Needs
Fortifying Your Electronic Data Security
Setting Up Mailing And Shipping Accounts