EIN& Business Licenses: City, County, State

You need an Employer ID Number (EIN) for your business credit identity

In order to operate your business legally, it is essential to obtain the appropriate licenses from your City, County, or State. Regardless of whether you have employees or not, your business entity must also possess a Federal Tax ID number (EIN). Similar to how you have a Social Security Number, your business requires an EIN. This Tax ID number is crucial for opening a bank account and establishing your business credit profile. It is worth noting that even if you already have an EIN, you may still need a new one under the following circumstances:


1. Your business becomes involved in a bankruptcy proceeding.

2. You establish a new corporation or decide to change the corporate name.

3. You bring in new partners and operate as a partnership.

4. You acquire or inherit an existing business that you plan to operate.


To ensure smooth operations, take the time to confirm that all relevant agencies, banks, and credit vendors have your business listed with the correct Tax ID number.

Get Your Federal Employers Identification Number Now

Attention Item - Your SIC and NAICS Classifications

How You Are Classified Can Impact Funding Approvals

Standard Industrial Classification (SIC) codes are numerical codes consisting of four digits, which were originally developed by the U.S. government to categorize the industry to which your company belongs, based on its business activities. These codes have largely been replaced by the six-digit North American Industry Classification System (NAICS) codes. However, despite their replacement, several government agencies, including the SEC, as well as some lenders, still utilize SIC codes today.


It is crucial to note that certain SIC and NAICS code classifications are considered to pose a higher risk of loan defaults. Therefore, it becomes important to ensure that your company has been accurately classified. When accessing your business credit reports, it is advisable to verify that each reporting agency has correctly classified your business.


Check SIC/NAICS classification status

Attention Item -  The Required Business or Professional Licenses

Obtain the necessary business or professional licenses if needed.

Ensure Compliance - Ensure Your Business Holds the Necessary Licenses


One of the most common pitfalls when establishing credit for your company is having mismatched business addresses on your business licenses. Even more critical is the absence of the "mandatory" licenses required for your specific type of business to operate legally. It is imperative to reach out to the State, County, and City Government offices to determine if any licenses or permits are necessary for your business operations. You can directly contact them via phone or browse their websites to verify the existence of any required licenses or permits applicable to your business.

For instance, if you decide to launch a business and run it from your home, certain cities may mandate obtaining a license, while others may not.



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