So you’ve decided to take your company to the next level by expanding your staff. Great! But being an “Employer” under the law is more than just a title, so before you extend your first offer, make sure your startup is set up for success. Part One of this three-part series will focus on several of the federal and local filings and registrations that new employers will need to make in preparation for their first hires.
First, the Internal Revenue Service (“IRS”) requires every employer to have an employment identification number (“EIN”). An EIN, sometimes referred to as a Federal Tax Identification Number, is required to report business and employee tax information. As such, any new employer’s first task should be to obtain an EIN. After applying for a federal EIN, new employers should confirm whether the state in which they conduct business also requires employers to obtain local EINs.