What Is an EIN?
To apply for a business credit card with EIN, you need to understand what it’s all about. When opening business bank accounts or applying for company credit cards and loans, firms, corporations, partnerships, nonprofit organisations, and other entities must provide their identity with a 9-digit number known as an EIN (Employer Identification Number). It functions essentially like the Social Security number of an individual in the corporate world.
EIN: A distinctive brand for your company
Your firm can be distinguished by its EIN, which also enables you to lawfully keep your personal and corporate finances out from others. In addition, you need to apply for business funding, hire staff, open a business bank account, and submit business taxes.
How to get an EIN
It just takes a few minutes to obtain an EIN from the IRS. Use IRS.gov to apply online, or fill out the SS-4 fast form and send it in by mail or fax. Applying online will result in an instant EIN, or applying by mail will yield an EIN within a few days.
Why is an EIN required to use a credit card?
To open a card in your company’s name, the majority of major corporation credit card providers demand an EIN. They want to double-check that your firm is legitimate and that your personal and corporate funds are kept apart. So, being approved requires having that EIN on hand.
Streamline your application
By getting an EIN ahead of time, you’ll have that key piece of identifying information ready when it comes time to open business accounts and apply for cards. This will make the application process quicker and easier.
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Why You Need an EIN to Apply for a Business Credit Card
When applying for a business credit card, you’ll need to provide an Employer Identification Number (EIN). The EIN serves as a social security number for your business and identifies your company to credit providers and the IRS.
- An EIN proves your business exists and allows lenders to report your company’s credit activity separately from your personal credit. This is key for establishing business credit.
- Most business card providers require an EIN before approving your application. Without one, you’ll likely get rejected or need to provide a personal guarantee by using your SSN.
- Applying with an EIN shows you are serious about treating your venture as a real business. Lenders want to see you’ve taken necessary legal steps.
- Having a separate EIN and business credit profile makes it easier to track expenses, provides liability protection, and prepares you to eventually open business loans or lines of credit.
Overall, taking a few minutes to obtain a free EIN online builds legitimacy with lenders and helps unlock access to credit needed to grow your company. Just head to the IRS website to get started.
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How to Get an EIN From the IRS
An Employer Identification Number (EIN) is a unique nine-digit number assigned by the IRS to businesses and other entities for tax purposes.
You’ll need this number when applying for a business credit card, opening a business bank account, paying employees, filing business tax returns, and more.
Getting an EIN online from the IRS only takes a few minutes. Here’s how to do it:
- Go to the IRS EIN Assistant on the IRS website. You’ll answer some basic questions about your business structure and ownership.
- Choose a responsible party. This will either be you as the sole proprietor, or another authorized person for the company. Have their information handy, including name, SSN, birth date, address and phone number.
- Determine the legal structure of your business. The common options are sole proprietor, partnership, corporation, non-profit, or limited liability company (LLC).
- Specify the reason you need an EIN. Applying for business licenses, opening a bank account, or filing a tax return are some typical reasons.
- Provide details about your business. This includes official company name, business address, start date, fiscal year-end date, and NAICS industry classification code that best describes your business activities.
- Review all entries to ensure accuracy before submitting your EIN application. Double check that the legal name and address match what will be used for other licenses, registrations and tax filings.
Choosing the Best Business Credit Card for Your Company
When choosing a credit card for your business, there are a few key things to consider:
1. Would you want a rewards or cashback card?
Rewards cards let you accumulate points, miles, or other benefits, whereas cashback cards give you a percentage of cashback on all purchases.
2. What monthly expenditure is required?
Most of the time, organisations have a minimum expenditure level that they must meet in order to safeguard high profits.
3. Would you like a business card that has no yearly cost?
Certain credit cards do not carry an annual fee the first year, but thereafter do. Ensure that you are aware of the annual fees.
4. Do you intend to keep a balance?
Be mindful while carrying balances on business credit cards as they may have higher interest rates than consumer cards.
5. Are you wanting to build credit?
Getting a business credit card under your EIN can help establish separate business credit.
Once you know what features are most important, compare a few top options like the Chase Ink Business cards or American Express Business cards.
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Step-by-Step Guide to Applying for a Business Credit Card With Your EIN
When you have an Employer Identification Number (EIN) for your business, you can use it to apply for a business credit card. This keeps your personal and business finances separate.
Here is the step-by-step process:
- Gather the required information. You will need identifying details about your business, as well as personal information if you are a sole proprietor or guarantor. Have your EIN, business address, phone number, website, and annual revenue handy.
- Decide which card is best. Consider features like rewards programs, intro APRs, and spending limits. Opt for no annual fee until your business grows. Compare cards at major issuers like Capital One, Chase, Citi, and American Express.
- Apply directly on the card issuer website or in person at a bank branch. The application will request your EIN and other business info. Be prepared to provide personal info if you personally guarantee the card.
- Get approved and receive your card. This takes anywhere from instant approval to several weeks for review. You will receive a spending limit and instructions to activate the card.
- Activate your new card upon receipt. Follow the instructions that come with the card to activate it and set up online account access. You can then begin using the card for business purchases according to the issuer’s terms.
Pro Tip: Check your business credit reports before applying to understand how lenders assess your creditworthiness. Pay balances on time to build good business credit history.