The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. When the number is used for identification rather than employment tax reporting, it is usually referred to as a Taxpayer Identification Number (TIN). When used for the purposes of reporting employment taxes, it is usually referred to as an EIN.
Why do you need it?
- To open a business bank account
- To apply for business permits
- To file business taxes
- To hire employees and withhold taxes
- To start a Corporation, LLC, or Partnership
- To apply for a business credit card or loan
- To create a Trust, Estate, or Non-Profit
Wondering what the difference is between a Member-Managed and Manager-Managed LLC? We can help…
In a Member-Managed LLC, members are like owners of the LLC. They are responsible for the day-to-day operations of the business.
In a Manager-Managed LLC, only certain designated members or even outside appointees, such as a Board of Directors, run the operations.
The main difference between the two is that manager-managed LLCs can have silent investors written into their business structure. They can act as a source of capital without worrying about the daily ins and outs. Larger LLCs see the benefit in having this setup as it would be impractical to have everyone in the organization chime in on business decisions. It also allows for more anonymity than member-managed organizations where all members must be listed within the Operating Agreement.
Member-Managed LLCs are great for startups with only a few members. They allow for an equal contribution from all of the owners and is the default type of LLC.
Which set-up is best for your new business?
A social media influencer business has the potential to generate profit, grow steadily, and carry a moderate amount of risk.
A limited liability company (LLC) is the right choice for any serious social media influencer business owner who is looking to:
- Protect their personal assets
- Have tax choices that benefit their bottom line
- Grow their business
- Gain credibility with customers
It is recommended that most businesses form an LLC, though each business is different.
The influencer market is projected to reach $15 billion by 2022. Brands are increasingly partnering with influencers who have a following and credibility in the market.
The social media influencer market is expected to grow as social media becomes more entrenched in people’s lives. Social media influencers can decide to operate within a specific niche such as fashion and beauty or food.
Social media influence business owners should consider the following factors when deciding if an LLC is the right choice:
- Level of risk
- Potential profit
- Credibility and consumer trust