Obtaining an Employer Identification Number (EIN) from the IRS
Occasionally I will have an applicant ask me if they are required to obtain an Employer Identification Number (EIN) from the IRS in order to accept Visa/Mastercard.
The answer is “It depends”.
The link to the IRS website below provides the general guidelines as to when a business is required to obtain an Employer Identification Number (EIN). If you meet the exemption standards, then your Social Security Number can be provided as a substitute for the EIN on the merchant account application. I often see this done by Sole Proprietors who have no employees.
http://www.irs.gov/businesses/small/article/0,,id=97872,00.html
The best part about obtaining an EIN Number is that it can be done over the Internet, and it’s free of charge! I’m sure new business owners can appreciate that there is no charge to apply for an EIN Number. (Unlike a business license that will require a fee. I know in my home town it costs $100 for a business license.)
You can apply for an EIN Number directly from the IRS website by clicking the link below.
https://sa2.www4.irs.gov/modiein/individual/index.jsp
Most importantly, once you get to the end of the application be sure to print out and save a copy of your Confirmation Notice. You will need this for your records.
