Applying for Tax EIN Number?

Under 'banking only'

[dpd1]

Somebody asked me about this and I wasn't sure what the answer is, so it got me curious. They're starting an internet biz and they aren't sure that it will work out, so at this point they don't want to get buried in gov bureaucracy just yet. But they've a couple gov type customers request an EIN # to set them up as a vender... If they applied for an EIN under the option they offer: "for banking purposes only", would they still get buried in stuff from the IRS a few weeks later as if they're starting a biz, or would they just leave them alone?

[HRoth]

I don't think I would apply for an EIN "for banking purposes only." Isn't that IRS-speak for "setting up phony credit to get loans"?

I got an EIN and didn't hear a peep out of the IRS on that count. Have you had experience with them paying attention to you after getting an EIN?

[dpd1]

Well, the option they give for 'banking purposes' is under the category of 'sole proprietor'. So I assume it's for people just starting a biz with a new account.

Honestly, I can't remember what happen with me... I started doing estimated payments and all that about the same time anyway. But I just remember years ago, when I signed up for something on a different biz, next thing I knew I was getting hounded by the IRS for estimated taxes and everything, and I hadn't made a penny yet... That's what this person wants to avoid for now. But it may have been a business license I signed up for that first time. It was a long time ago.

[MrHard]

or, they could be more likely to bother you if you don't get one?

If you are a sole proprietor you just give your SS# instead of an EIN. It's form W-4 if I remember correctly.

[edited by: MrHard at 8:49 pm (utc) on Mar. 13, 2009]