Now that you have registered your business name and formed your LLC, the IRS also wants to know how your business is going to be identified at tax time.
Usually you would identify yourself with your social security number (SSN) when you file your taxes. But by choosing to use an EIN for your business, you’ll keep your SSN safe when you give preschool parents their year-end statement showing how much they paid. If they use the preschool’s class time as childcare, they can deduct the preschool tuition from their taxes; so they would use your EIN (found on their year-end tuition statement) to report who the caregiver was (i.e. you) for their child’s preschool.
Because you will be sending out yearly tuition receipts to all preschool families, we 100% recommend you get a FREE EIN from the Internal Revenue Service instead of sending out your SSN to hundreds of preschool families.
What To Do When:
- You already have an EIN for your preschool and are just adding another component (like adding local, or adding online, etc.)
- Your EIN works for that entire business, so you don’t need a new EIN.
- You’re registering a new LLC
- You need a new EIN for the new LLC